Proposal to re-lend more than 6,000 billion VND of policy capital

(PLVN) - The Government proposed allowing the Vietnam Bank for Social Policies to continue using all budget capital, about 6,000 billion VND, recovered from ended policy credit programs to re-lend.

On the morning of June 24, the National Assembly listened to the Report, the Verification Report and discussed in the hall about the handling of debt collection sources of policy credit programs (TDCS) funded by the state budget (NSNN) that have expired at the Vietnam Bank for Social Policies (VBSP).

Authorized by the Prime Minister to present a summary of the Proposal, Minister of Finance Nguyen Van Thang proposed allowing the VBSP to continue using all the State budget capital allocated for the completed TDCS programs to implement loans for other TDCS programs (typically the socio-economic development program for ethnic minority areas and the social housing loan program). The total capital proposed to be reused is more than VND 6,068 billion, of which more than VND 3,144 billion has been recovered as of April 30, 2025 and over VND 2,924 billion is continuing to be recovered under the credit contract.

Briefly presenting the Inspection Report, Chairman of the National Assembly's Economic and Financial Committee Phan Van Mai said that the Committee agreed with the reuse of recovered capital and assessed that the Government's proposal was consistent with the major policies of the Party and State, especially the spirit of Directives No. 39-CT/TW and 34-CT/TW of the Secretariat on enhancing the effectiveness of policy credit and social housing development.

Chairman of the National Assembly's Economic and Financial Committee Phan Van Mai. (Photo: National Assembly Portal)

Regarding the specific plan, the Committee agreed with the proposal to allow the VBSP to use the entire amount of more than VND 6,068 billion to lend to new TDCS programs. At the same time, the Committee requested the Government to review all data, take responsibility for the accuracy of revenue and expenditure, and direct the VBSP to manage and use capital in accordance with regulations and effectively, without allowing any profiteering, loss or waste.

Discussing at the meeting hall, Delegate Tran Hoang Ngan (Ho Chi Minh City Delegation) highly agreed with the Government's Proposal and the Inspection Report of the Economic and Financial Committee on the issue of handling debt collection sources of TDCS programs funded by the State budget that have expired at the Vietnam Bank for Social Policies.

Delegate Tran Hoang Ngan. (Photo: National Assembly Portal)

However, the Delegate suggested that the Government consider and the Finance and Economic Committee should settle the amount of 3,144 billion VND rather than handing over the entire package of 6,068 billion VND because the amount currently in hand is only 3,144 billion VND. In addition, the Government needs to explain further about the assignment to the Social Policy Bank but the lending is not for the 3 groups of subjects that were previously decided.

Delegate Pham Van Hoa - Dong Thap highly appreciated the humanity of the TDCS programs and agreed with Delegate Ngan that the recovered amount of more than 3,144 billion VND will continue to be lent to the 3 groups of beneficiaries that we had previously lent to or to other beneficiaries. At the same time, the Delegate suggested paying more attention to capital recovery because in reality, there is a large number of people who think this money is charity money, making capital recovery very difficult.

In the report clarifying the opinions of the National Assembly deputies, Minister of Finance Nguyen Van Thang said that according to the report of the Social Policy Bank, the entire principal capital of more than 6,068 billion VND is 100% guaranteed, or in other words, there is no loss of any budget capital. The reason is that currently the bad debt of this program is 2.68% of the total outstanding debt, which is an acceptable bad debt ratio for banks, that is, less than 3% and importantly, the entire amount has been set aside for risk provisions, meaning that all of this 2.68%, assuming it cannot be recovered, will have been set aside for risk provisions. Therefore, if only more than 3,144 billion is settled, the National Assembly will have to make another unnecessary move later.

Minister of Finance Nguyen Van Thang. (Photo: National Assembly Portal)

Regarding the issue of continuing to extend the TSCS programs when the three programs we have implemented are very meaningful, the Minister stated that all three programs are still very necessary but there are reasons to end them so that the Ministry of Finance can continue to advise the Government to submit to the National Assembly to issue other meaningful programs to support the people. These are the loan programs to support ethnic minorities, housing loans, and loans to support poor districts to promote labor export.

However, in the context of preparing to implement a two-level local government model, eliminating the district level and reducing the number of provinces and cities from 63 to 34, it will be necessary to continue to re-evaluate to determine which areas are particularly difficult and which are other areas in order to develop closer and more accurate policies.

Regarding methods, according to Mr. Thang, there are two methods of providing resources for the VBSP: providing additional charter capital and providing capital for the VBSP to implement a number of social security programs. Therefore, the second method is much more meaningful when we provide the budget associated with specific programs of the Party, the State, the National Assembly, and the Government in each period to achieve the social security goals of the Party and the State.

Clarifying the effectiveness of capital recovery, Minister Thang said that the loan models are very specific and are closely monitored by associations, local authorities and the VBSP is very firm and strictly controls bad debt. Moreover, in the context of current information technology application, the statistics are extremely accurate, and banks cannot hide them. Through this, the Minister hopes that National Assembly deputies will support additional capital for the VBSP, and at the same time help reduce unnecessary procedures to bring capital sources for the TDCS programs into life.

An Duy

Source: https://baophapluat.vn/de-xuat-cho-vay-tro-lai-hon-6000-ty-dong-von-chinh-sach-post552798.html