One of the social welfare policies recently approved by the Provincial People's Council is a resolution stipulating loan amounts, terms, interest rates, as well as procedures for handling at-risk debts, specifically those falling outside the current regulation scope stipulated by the Prime Minister, yet warranting consideration for debt settlement due to objective circumstances. This initiative utilizes local budget funds entrusted to the Dak Lak branch of the Vietnam Bank for Social Policies (VBSP).

Financial resources for this resolution are drawn from local budget allocations, integrated into both medium-term and annual public investment plans, entrusted to the VBSP’s Dak Lak branch, alongside other legally permissible funding sources, in alignment with local realities coupled with budgetary capacity.

Transaction activities at the Cu Kuin branch of the Vietnam Bank for Social Policies.

During the recent session, discussions focused on ensuring that loan amounts, terms, together with interest rates are appropriate for specific beneficiary groups, taking into account their capital requirements combined with repayment capacity. Furthermore, the resolution clarifies the conditions, criteria, procedures, as well as responsibilities of relevant agencies alongside units regarding to handling at-risk debts. Its adoption reflects a unified commitment to refining the mechanisms for utilizing local budget funds to support social policy-based lending.

Consolidating resources for policy-based lending

According to Mr. Dao Thai Hoa, Director of the VBSP’s Dak Lak branch, reorganizing administrative units along with local government structures necessitates strengthening organizational frameworks, adjusting coordination methods, reconfiguring transaction networks. Crucially, these changes must ensure that social policy-based lending operations remain continuous coupled with secure, preventing any disruption in access to capital for the poor together with other policy beneficiaries. In 2025, local budget funds entrusted to the VBSP’s Dak Lak branch totalled 1,170.4 billion VND. By September 30th, 2026, these entrusted local budget funds had grown to 1,626.5 billion VND, accounting for 10.09% of the total capital, an increase of over 456 billion VND since the beginning of the year.

Leaders of the Vietnam Bank for Social Policies conducting an on-site inspection of how funds are utilized by residents in Lien Son Lak commune.

This resolution plays a practical purpose in refining the management alongside utilization mechanisms for local budget funds entrusted to the provincial VBSP branch, while simultaneously enhancing the social policy credit effectiveness in the province. The resolution provides specific stipulations regarding loan amounts, terms, interest rates, and procedures for handling loans affected by risks, covering cases beyond eligibility criteria or those stemming from objective circumstances, in accordance with regulations stipulated by the Prime Minister. This creates a framework to the rigorous together with consistent management for local capital, tailored to the provincial specific conditions, while ensuring that risk-related issues are addressed on a solid basis and within the authority scope.

Ms. H’Giang Nie, Chairwoman of the Provincial Farmers’ Association, member of the Provincial People’s Council, member of the VBSP’s Provincial Board of Directors, stated that the outstanding loan balance managed through the Farmers’ Association has reached 4,787 billion VND, approximately 30% of the total entrusted loan portfolio, an increase of 356 billion VND since the beginning of the year. Beyond providing residents with additional capital for production, each policy-based loan creates opportunities for long-term economic development, contributing to the sustainable poverty reduction goal, rural advancement, life-quality improvement for Dak Lak provincial people.

Translated by TRINH THUY