Policy-based funding – a sustainable pillar in poverty reduction.

With its unique organizational structure, widespread network, and the involvement of the entire political system, the Social Policy Bank has become a solid support, helping millions of poor and near-poor households and vulnerable groups gradually stabilize their lives, develop production, and rise out of poverty sustainably.

Policy-based funding has supported hundreds of thousands of poor and near-poor households nationwide. Photo: Do Phong

Outstanding results from policy credit activities.

Amidst a volatile socio -economic environment and prolonged natural disasters in many localities, the Social Policy Bank has maintained stable and safe operations, closely following the directives of the Party Central Committee, the Government, the Prime Minister, and the State Bank of Vietnam. In particular, following the administrative reorganization according to Resolution No. 60-NQ/TW, the entire system has proactively reviewed and adjusted its organizational methods, ensuring that transaction points and branch offices operate smoothly, preventing any disruption to access to capital for the poor and policy beneficiaries.

To date, the total capital of the Social Policy Bank has reached over 422 trillion VND, an increase of 10.4% compared to 2024. Of this, entrusted capital from local budgets reached 63,549 billion VND, an increase of 12,868 billion VND compared to the previous year and accounting for more than 15% of the total capital. Many localities have seen high growth rates, such as Hanoi , Ho Chi Minh City, Hai Phong, Da Nang, Dong Nai, and Khanh Hoa, demonstrating the increasingly comprehensive understanding of the role of policy credit in achieving socio-economic development goals and sustainable poverty reduction by all levels of government.

Alongside strengthening capital resources, lending activities continued to be implemented vigorously. Total loan disbursements across the system reached VND 117,620 billion, with nearly 1.842 million poor households and other policy beneficiaries receiving loans. Total outstanding policy credit reached VND 402,011 billion, an increase of 9.4% compared to 2024, with nearly 6.7 million households still having outstanding loans. After 30 years of formation and development, the scale of policy credit has increased 46 times compared to the time when the Bank for the Poor was first established, affirming its position as an important pillar in the country's social security policy system.

At the recent 2025 fiscal year settlement in December, the General Director of the Vietnam Bank for Social Policies, Duong Quyet Thang, commended the solidarity and efforts of the entire system in effectively implementing preferential credit policies of the Party and the State, thereby making an important contribution to achieving the goal of sustainable poverty reduction and ensuring social security.

Across the country, there are 9,970 transaction points of the Social Policy Bank located in communes, flexibly situated at commune People's Committee offices, village cultural centers, community centers, and other convenient locations. Photo: Do Minh

According to the General Director of the Social Policy Bank, Duong Quyet Thang, one of the key factors contributing to the effectiveness of policy credit is the unique organizational model, bringing the bank closer to the people. By the end of October 2025, the whole country will have 9,970 commune-level transaction points flexibly located at commune People's Committee headquarters, village cultural centers, community centers, and other convenient locations. Entrusted activities through socio-political organizations continue to be effective, contributing to improving credit quality, ensuring transparency, and helping loan capital reach the right recipients for the right purposes.

From that preferential capital source, a series of practical social welfare results have been recorded. In the first 11 months of 2025, policy credit contributed to creating jobs for more than 671,000 workers; supporting nearly 7,400 people to work abroad; helping more than 4,400 people who have completed their prison sentences reintegrate into the community; and supporting more than 40,000 disadvantaged students to continue their studies. In addition, more than 1.367 million rural water supply and sanitation projects were built, nearly 3,000 houses for poor households and more than 8,300 social housing units were completed, contributing to a significant improvement in people's living conditions.

The effectiveness of policy-based funding is clearly evident.

In fact, policy-based funding has proven effective in helping many localities successfully complete their poverty eradication and reduction efforts.

As evidence, in Ninh Binh province (after the merger of Ha Nam, Nam Dinh, and Ninh Binh provinces), policy credit has played and continues to play a crucial role in implementing the National Target Program for Sustainable Poverty Reduction. During the 2021-2025 period, the province's per capita income is estimated to reach 89 million VND; the multidimensional poverty rate is projected to decrease to 2.87% by 2025, with many localities experiencing significant reductions compared to the beginning of the term. These results reflect the decisive leadership of Party committees and authorities at all levels, and the coordinated efforts of the entire political system, in which policy credit capital plays a key role.

Tran Song Tung, Standing Vice Chairman of the Ninh Binh Provincial People's Committee and Head of the Board of Directors' Representative Committee of the Ninh Binh Provincial Branch of the Social Policy Bank, affirmed that social policy credit is an effective tool to help localities achieve the goal of sustainable poverty reduction, political and social stability, and improve people's lives. Over more than two decades of operation, the Ninh Binh Provincial Branch of the Social Policy Bank has continuously expanded its scale, improved the quality of credit, brought preferential state capital to the grassroots level, and supported people in developing production and creating long-term livelihoods.

The Social Policy Bank continues to clearly define its role as a pillar in the sustainable poverty reduction effort. Photo: Do Minh

According to Pham Duc Cuong, Director of the Ninh Binh Provincial Branch of the Social Policy Bank, from its early days with outstanding loans of just over 100 billion VND, the branch has now implemented 18 policy credit programs with a total capital of over 13,668 billion VND and outstanding loans exceeding 13,647 billion VND. In the first nine months of 2025 alone, this capital has helped thousands of households expand production, develop clean agriculture and traditional craft villages; created stable jobs for over 16,000 workers; supported hundreds of disadvantaged students; and built and repaired tens of thousands of clean water facilities and houses for poor households and policy beneficiaries.

The effectiveness of policy-based credit is not only evident in Ninh Binh, but also in Hanoi. In the first 11 months of 2025, the Hanoi branch of the Vietnam Bank for Social Policies disbursed 6,923 billion VND to over 90,000 poor households and other policy beneficiaries, focusing on programs to create jobs, maintain and expand employment, clean water and sanitation, social housing, students, and those who have completed their prison sentences. The total outstanding loan balance of the branch reached 18,166 billion VND, an increase of nearly 10% compared to the beginning of the year, making a significant contribution to ensuring social security and stabilizing the lives of the people of Hanoi.

According to Pham Van Quyet, Director of the Hanoi branch of the Social Policy Bank, practical experience in localities shows that policy credit is not simply a form of capital support, but also a "lever" to help change production mindsets and awaken the will to rise above poverty among the poor. When access to capital is timely and targeted, many households boldly invest in economic development, creating jobs for their families and communities, gradually escaping poverty sustainably, and making positive contributions to the overall development of the locality.

For example, in Cao Bang province, along with other resources, policy-based funding has significantly contributed to reducing the poverty rate by 4.67% by the end of 2024. In 2025, Cao Bang province aims to reduce the poverty rate by more than 4%, with the poverty rate among ethnic minorities decreasing by at least 4% or more, with 5,150 households escaping poverty by the end of 2025.

According to Nguyen Quang Thinh, Director of the Cao Bang Provincial Branch of the Social Policy Bank, as of November 30, 2025, the total capital for implementing social policy credit programs reached VND 5,080.1 billion, an increase of VND 411.6 billion compared to 2024. Of this, entrusted capital from the local budget was VND 961.9 billion; and capital mobilized from organizations and individuals also reached over VND 400 billion, an increase of VND 48.6 billion compared to the previous year.

Policy-based funding has helped many farmers rise out of poverty and develop effective economic models. Photo: Do Phong

In addition, the total outstanding loan balance for 20 credit programs is VND 5,050.3 billion, achieving 99.9% of the growth plan assigned for 2025, with 61,254 borrowers, accounting for 47.23% of the total households in the province. The increase in outstanding loans compared to 2024 is mainly in some programs such as: the loan program for job creation (VND 637.9 billion); loans under Decree No. 28/2022/ND-CP on preferential credit policies to implement the National Target Program for socio-economic development in ethnic minority and mountainous areas giai đoạn 2021-2030 (VND 84.5 billion); loans for clean water and rural sanitation (VND 71.6 billion)...

The above results clearly reflect the effectiveness of policy credit capital, which is always channeled to each poor household and policy beneficiary, becoming an effective tool in the cause of sustainable poverty reduction and new rural development in the locality. Nguyen Quang Thinh, Director of the Cao Bang Provincial Branch of the Social Policy Bank, affirmed that the most favorable point is that local Party committees and authorities always pay attention to the poverty reduction program and create conditions for policy credit to operate effectively.

Entering a new phase, the Social Policy Bank continues to clearly define its role as a pillar in the sustainable poverty reduction effort. The effective implementation of Directive No. 39-CT/TW of the Party Central Committee, along with resolutions and decisions of the National Assembly and the Government, will continue to create a legal framework and important resources for policy credit to be effective. With the support of all levels of government and the efforts of the entire system, policy capital will continue to be a solid foundation, contributing to realizing the goal of "leaving no one behind" on the journey of national development.

Source: https://hanoimoi.vn/nguon-von-chinh-sach-tru-cot-ben-vung-trong-cong-cuoc-giam-ngheo-727039.html