VBSP Vietnam

About VBSP Vietnam

The Vietnam Bank for Social Policies was established in 1995 to provide policy lending to poor households and vulnerable groups. VBSP operates a unique model using local community organizations to identify borrowers and manage loans. The bank has over 7 million active borrowers and operates in every commune in Vietnam. VBSP provides microfinance, student loans, housing loans, and employment loans. The bank is funded by the government and international development organizations. VBSPs model of using local political and social organizations for loan origination and monitoring has been studied internationally. The bank has contributed significantly to Vietnams remarkable poverty reduction, from over 50 percent in 1990 to under 5 percent by 2024.