The Vietnam Bank for Social Policies (VBSP) in Phu Tho province has significantly reduced its rate of delinquent loans to 0.075% of its total outstanding loan volume, a decrease of 789 million VND since the beginning of 2025, according to a report from Bao Phu Tho. This achievement positions Phu Tho as one of only two provincial branches nationwide to lower its non-performing loan ratio during that period.
The success comes after administrative restructuring in Vietnam, which introduced a two-tiered local government model. In response, the Phu Tho branch of VBSP proactively implemented measures to ensure a smooth, secure, and effective lending process, aiming to reach all eligible recipients. These efforts included coordinating with local authorities to establish 479 transaction points across communes and wards, including locations within People’s Committee headquarters and community cultural centers.
Nguyen Minh Hung, Director of the Phu Tho Provincial Branch of VBSP, stated that the branch has benefited from close guidance from the central bank and support from local party committees and authorities since the reorganization. “The bank has actively promoted capital mobilization, coordinating with relevant departments and authorities to ensure the receipt of funds from the local budget from the outset,” Hung said.
VBSP’s efforts extend beyond establishing physical locations. The bank has also collaborated with 589 assigned units at the commune level and 8,148 savings and credit groups to provide training to local officials and group leaders on responsible lending practices. Currently, outstanding loans disbursed through these collaborative activities total 18.544 trillion VND, representing 99.6% of the total outstanding loan volume.
The bank’s internal controls have been strengthened, with increased scrutiny and monitoring to ensure borrowers utilize loan capital for its intended purposes. Active efforts are underway to recover overdue debts and address loans from customers who have relocated.
As of February 2026, VBSP Phu Tho is managing 21 credit programs with a total outstanding loan volume of 18.62 trillion VND, the second-highest amount among all provincial branches in Vietnam. This lending supports 289,090 households, and individuals. The average outstanding loan per household is 64.4 million VND.
The VBSP also coordinates with local financial authorities to allocate provincial budget funds to social credit programs. To date, local authorities have entrusted 1.798 trillion VND to VBSP, representing 9.54% of the bank’s total managed funds.
One beneficiary of these programs is Nguyen Duc Thach, a resident of Phung Nguyen commune, who received a 100 million VND loan from a fund supporting individuals re-integrating into society after serving prison sentences. Thach used the loan to invest in livestock and agriculture, establishing a stable income source.
In 2025, the Phu Tho branch of VBSP provided access to social credit to 86,537 poor households and other beneficiaries, totaling 5.347 trillion VND. This funding facilitated the creation of 21,411 jobs, supported 296 individuals in purchasing or renovating social housing, enabled 203 workers to pursue overseas employment, provided loans to 619 disadvantaged students, and assisted 287 families with formerly incarcerated members. The funding supported the construction, repair, or upgrade of 77,074 rural household water supply and sanitation projects.
VBSP is also actively promoting a credit policy for students pursuing degrees in science, technology, engineering, and mathematics (STEM) fields, as outlined in Decision No. 29/2025/QD-TTg. To date, 170 households have received a total of 13 billion VND in STEM loans through all transaction points.