VBSP shows inspiring first-half performance

July 13, 2022 | 09:58
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On July 7, the Board of Directors of the Bank for Social Policies (VBSP) convened its second-quarter meeting chaired by Nguyen Thi Hong – also State Bank Governor – noting strong results across a wide range of its operations.
VBSP shows inspiring first-half performance
VBSP’s second-quarter review meeting

Addressing the meeting, VBSP’s top leader said that the pandemic has been efficiently kept under control in the country. Localities across the nation are doing a good job of both effectively containing the spread and reviving social and economic development to constantly improve people’s lives.

“The government enacted Resolution No.11/NQ-CP dated January 30 presenting a programme on socioeconomic rebound and development, and deployed Resolution No.43/2022/QH15 striving to swiftly bring the country out of difficulties and create conditions to beef up development in the 2021-2025 period and beyond,” said Hong.

Hong noted that the National Assembly and the government have assigned VBSP important tasks to support business growth. Since the start of the year, all leaders and staff have taken the initiative to optimise operational efficiency.

VBSP shows inspiring first-half performance
Nguyen Thi Hong, chairwoman of the Board at VBSP and State Bank Governor, chaired VBSP’s second-quarter review meeting

Along with this, as of June 30, total capital sources earmarked for policy credit activities reached $12.5 billion, up $1.3 billion compared to the end of 2021. Authorised capital sources to lend to policy beneficiaries amounted to $1.2 billion, an increase of $160.5 million compared to the end of last year.

The total outstanding balances from policy credit programmes reached $11.9 billion (up $1.1 billion) with more than 6.4 million needy households and policy beneficiaries receiving loans.

The bank and its member units have been efficiently carrying out Resolutions 11 and 43 to aid the rebound efforts of businesses and people.

By June 30, the whole VBSP system had lent $386.7 million to more than 213,000 customers.

By June 30, the whole VBSP system had lent $386.7 million to more than 213,000 customers.

In the first half of this year, policy credit sources created jobs for nearly 496,000 labourers, helping over 3,100 of them to work abroad under term-based contracts. Loans were also provided to more than 12,800 students who were struggling to continue studying.

Nearly 65,600 households got loans from VBSP to buy computers and teaching aids to support their children's online learning.

Similarly, nearly 1,100 businesses were given loans to boost production and business rebound and to make wage payments for about 155,000 pandemic-hit labourers.

Policy credit sources were directed into building nearly 921,000 safe water and sanitary works in rural areas, constructing more than 700 houses for needy households, and establishing over 4,400 social housing units.

Alongside the stable growth in balance volume associated with policy credit programmes, the debt quality has been enhanced with overdue and frozen debt accounting for just 0.7 per cent of the total balance and overdue debts making up a mere 0.2 per cent.

To accomplish the assigned tasks, chairwoman Hong required the whole system to continue consulting with the government, relevant management agencies, and localities to ensure the effective implementation of Directive 40 of the Secretariat.

VBSP shows inspiring first-half performance
CEO of VBSP Duong Quyet Thang reporting on the bank’s second-quarter business results

All units in the system are taking innovative measures to boost the efficiency of activities to mobilise capital sources, collect debts, and increase lending to ensure timely capital disbursement to those in need.

Efforts must gear towards accomplishing growth targets assigned by the prime minister, ensuring the liquidity of the system, and crafting a credit plan for 2023.

Hong added that units must consult with the management in relevant localities to analyse 20 years of implementing preferential credit policies, promote digital transformation, and execute key projects to provide comprehensive products and services to customers across the whole system.

By Hong Thuy

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