Improving the quality of policy credit capital

In order to improve credit quality, prevent and limit the occurrence of irrecoverable debts and continue to promote the effectiveness of policy credit activities in the new period. Since mid-August, the Provincial Branch of the Vietnam Bank for Social Policies (VBSP) has coordinated with associations and organizations at all levels and the People's Committees at the commune level to carry out the work of comparing and classifying customer debts in 2025. Thereby, helping local authorities have more accurate data to propose solutions to improve the quality of policy credit in the area in the coming time.

Early in the morning, Mr. Dinh Cong Chuan from Muong Ke hamlet, Muong Hoa commune, arrived at the community cultural center to settle his loan. In 2022, he borrowed 100 million VND from the poverty alleviation loan program. With the money, Mr. Chuan bought four female buffaloes and built a barn; to date, his buffalo herd has doubled. Mr. Chuan shared: "Thanks to the government's policy loans, my family has risen out of poverty, built a more prosperous life, and has the means to take care of our children's education."

Comparison at Muong Ke Hamlet, Phu Vinh Point, Muong Hoa Commune

To conduct debt reconciliation and classification in 2025, the Tan Lac branch of the Vietnam Bank for Social Policies (VBSP) organized 159 locations at community cultural centers. To ensure efficiency, the branch divided the process into specific time slots and notified the Savings and Loan Groups in advance so that people were aware. As a result, people arrived on time, maintained order, and facilitated the reconciliation process. To date, 10,776 out of 11,773 customers have had their debts reconciled and classified, achieving a 91.5% completion rate. Mr. Nguyen Viet Phuong, Deputy Director of the Tan Lac branch of VBSP, stated: “We not only handle debt reconciliation and confirmation procedures but also disseminate information about preferential credit programs to the people; at the same time, we listen to their concerns and aspirations to better serve them.”

In accordance with Decision No. 976 dated July 1, 2015, of the Prime Minister on the promulgation of the Regulations on Debt Classification at the Vietnam Bank for Social Policies (VBSP), the VBSP conducts a comprehensive reconciliation and classification of customer debts every three years. This year, immediately after the General Director issued document No. 7364/NHCS-QLN dated July 25, 2025, the VBSP Provincial Branch promptly advised the Chairman of the Provincial People's Committee to issue directive No. 1903/UBND-KT10 dated August 8, 2025, on the implementation of the VBSP debt reconciliation and classification in 2025. The VBSP Phu Tho Branch assigned leaders to oversee the transaction offices to direct, support, inspect, and supervise the organization and implementation of debt reconciliation and classification, ensuring compliance with regulations, quality of reconciliation and classification, and progress as required.

Simultaneously, instructions will be given to assign officers to participate in the reconciliation and classification of debts in accordance with the actual conditions and circumstances of each customer and locality; to ensure objectivity, credit officers monitoring a particular area will not directly participate in the reconciliation and classification of debts for customers in that area... The time for reconciliation and classification of debts will be from August 15th to no later than November 30th, 2025. The scope of reconciliation and classification covers 100% of customers with outstanding principal and interest as of July 31st, 2025. Each customer will have their balance, loan term, repayment status, and interest payment details specifically reviewed; they will also receive advice and reminders about their responsibility to use the capital for the intended purpose. For customers who have moved to another location, confirmation from the local police is required...

The Au Co branch of the Vietnam Bank for Social Policies (VBSP) has completed over 90% of its verification process to date. It is expected to be completed by the end of October. However, the branch currently has one customer who has left his residence: Mr. Tran Tuan Anh, residing in Zone 1, Phu Tho Ward, with an outstanding debt of 46.5 million VND under the poverty alleviation program. Mr. Nguyen Ngoc Lam, Director of the Au Co branch of the VBSP, stated: “Regarding this case, the branch has reported to the Phu Tho Ward People's Committee to forward the case to the Ward Police to locate Mr. Tuan Anh and ensure he fulfills his obligations to the VBSP.”

Preliminary results show that most customers have fulfilled their obligations to repay principal and interest, and many households have used the borrowed capital effectively, contributing to increased income and improved living standards. In some difficult cases, bank officials have guided borrowers on solutions to overcome these challenges, ensuring the rights of both the bank and the borrowers.

Comrade Nguyen Thanh Tinh - Deputy Director of the Phu Tho Branch of the Vietnam Bank for Social Policies - affirmed: "Organizing verification at each residential group not only helps to improve credit management, but also enhances transparency and promotes the sense of responsibility of the entire political system and the people in implementing social policy credit. This is the foundation for more effective implementation of the State's preferential credit programs."

The Tam Nông branch of the Vietnam Bank for Social Policies (NHCSXH) conducts debt reconciliation at the Thọ Văn 2 transaction point, Thọ Văn commune (formerly Zone 5, Tề Lễ commune).

The process of verifying and classifying loans not only serves credit management but also contributes to increased transparency and builds public trust in the State's preferential credit policies. Through this, local authorities and the Vietnam Bank for Social Policies (VBSP) have a stronger basis for advising on solutions to improve credit quality, expand the number of beneficiaries, and simultaneously reduce overdue loans and credit risks. As of July 31, 2025, the total outstanding debt of social policy credit programs in the province requiring verification and classification was nearly VND 17,866 billion, with 293,285 customers still having outstanding debt in 148 communes and wards. To date, the province has verified 241,800 out of 293,285 customers, achieving a completion rate of 82.45%.

In reality, policy credit capital has become an important "pillar" helping poor households and policy beneficiaries in the province to rise out of poverty, develop their economy , and improve their lives. Implementing debt reconciliation and classification not only enhances transparency but also contributes to affirming the role of the Vietnam Bank for Social Policies in delivering credit policies to the right people for the right purposes, improving the efficiency of using social policy credit capital at the local level.

Dinh Tu

Source: https://baophutho.vn/nang-cao-chat-luong-von-tin-dung-chinh-sach-241586.htm