State Bank of Vietnam publishes plan to boost Vietnam Bank for Social Policies funding with 30% state budget and 30% government-guaranteed bond targets by 2030

The State Bank of Vietnam published the Prime Minister’s decision issuing an implementation plan for Directive 39 of the Party Central Committee Secretariat on improving the effectiveness of social policy credit. The plan focuses on expanding and modernising concessional lending delivered through the Vietnam Bank for Social Policies, while setting targets to diversify and strengthen its funding base. Funding measures include concentrating state budget-origin resources in the bank and targeting state budget allocations at 30% of total funding by 2030, alongside a target for government-guaranteed bond funding to reach 30% of total funding by 2030 and a proposal to raise the cap on such issuance. The framework also calls for enabling the bank to receive official development assistance and government concessional loans, maintaining a requirement for state-owned credit institutions to hold deposits at the bank equal to 2% of their Vietnamese dong mobilised funds (as at 31 December of the prior year), and increasing local-government entrusted budget funding to about 15–20% of annual credit outstanding growth and 15% of total funding by 2030. Operational and policy workstreams span reviewing existing programmes and proposing changes to expand scope (including eligible borrowers, loan limits and tenors), prioritising the highest preferential terms for poor households and ethnic minorities in disadvantaged areas, mobilising contributions to the Fund ‘For the Poor’, strengthening inspection and risk management (including debt classification and provisioning suited to the bank’s mandate), simplifying loan procedures, and advancing digital transformation through digital banking platforms and connectivity to national and sectoral databases for beneficiary management.