Vietnam Bank for Social Policies

Gross Loan Portfolio USD, 2010: 4.6 billion

Number of active borrowers 2010: 8.2 million

Average loan balance per borrower USD, 2010: 561.9

Deposits USD, 2010: 1.6 billion

Assets USD, 2010: 4.7 billion

Number of depositors 2010: 10,048

Mission:

To help reduce the poverty rate and improve environment situation in Vietnam

Address:

Building CC5, Ban dao Linh Dam – Hoang Mai Dist

Ha Noi

Hanoi

Vietnam

Phone:

+84-4-3641 7184

Fax:

+84-4-3641 7194

Email:

phihale [dot] vbsp [at] gmail [dot] com

Website:

www.vbsp.org.vn

Main Funding Sources:

Grants

Loans

Products and Services:

Loans

% Operations Comprised by MF:

91 - 100

Date established:

Jan 1 1996

FYE:

31-Dec

Current Legal Status:

Bank

Regulated:

yes

Social Performance Profile


+ Mission specifics
+ Target markets (ranked by importance)
Clients living in rural areas	1
Women	2
Adolescents and youth (below 18)	3
Clients living in urban areas	4
+ Development goals (ranked by importance)
Poverty reduction	1
Employment generation	2
Children's schooling	3
Improvement of adult education	4
Youth opportunities	5
Health improvement	6
Water and sanitation	7
Gender equality and women's empowerment	7
Housing	8
Growth of existing businesses	8
Development of start-up enterprises	9
+ Poverty targets
Very poor clients
Poor clients
Low income clients
+ Governance
Has trained members of its board on social performance management
Has a formal board committee that monitors social performance
+ Range of products and services
+ Financial products and services offered
+ Credit products offered
Microcredit loans for microenterprises
Microcredit for household needs/consumption
SME loans
Loans for agriculture
Loans for education
Housing loans
Water and sanitation
+ Savings products offered
Voluntary savings accounts
Fixed term deposits
+ Compulsory insurance products required
Compulsory credit life insurance
Compulsory agricultural insurance
+ Voluntary insurance products offered
+ Other financial products and services offered
Remittances services
+ Non-financial services offered
+ Enterprise services offered
Business development services
+ Education services offered
Financial literacy education
+ Health services offered
Basic medical services
+ Women's empowerment services offered
Leadership training for women
+ Products and services targeting the poor
Products and services specifically designed to target the poor:	Savings mobilization; remittance, financial education, business advisory
+ Social responsibility to clients
+ Client protection principles in use
The loan approval process requires evaluation of borrower repayment capacity and loan affordability. Loan approval does not rely solely on guarantees (whether peer guarantees, co-signers or collateral) as a substitute for good capacity analysis.
Internal audits check household debt exposure, lending practices that violate procedures including unauthorized re-financing, multiple borrowers or co-signers per household, and other practices that could increase indebtedness.
Productivity targets and incentive systems value portfolio quality at least as highly as other factors, such as disbursement or customer growth. Growth is rewarded only if portfolio quality is high.
Prices, terms and conditions of all financial products are fully disclosed to the customer prior to sale, including interest charges, insurance premiums, minimum balances, all fees, penalties, linked products, third party fees, and whether these can change over time.
Staff is trained to communicate effectively with all customers, ensuring that they understand the product, the terms of the contract, their rights and obligations. Communications techniques address literacy limitations (e.g. reading contracts out loud, materials in local languages).
Acceptable and unacceptable debt collection practices are clearly spelled out in a code of ethics, book of staff rules or debt collection manual.
The organization's corporate culture values and rewards high standards of ethical behavior and customer service.
A mechanism to handle customer complaints is in place, has dedicated staff resources, and is actively used. (Suggestion boxes alone are generally not considered adequate.)
Customers know how their information will be used. Staff explains how data will be used and seeks permission for use.
+ Cost of services to clients
Flat interest method
+ Social responsibility to staff
+ Human resources
Transparency on salary (a clear salary scale based upon market salaries)
Benefits (medical insurance, pension contribution)
Protection at work (safety, anti-harassment)
Equality (anti-discrimination, equal pay for men and women with equivalent skill levels)
+ Basis of staff incentives related to social performance
+ Social responsibility to the environment
This institution raises clients' awareness about environmental impacts
This institution trains/educates clients regarding environmental improvements
This institution includes specific clauses in its loan contracts to mitigate specific environmental risks
This institution identifies enterprises with environmental risk
This institution offers lending lines linked to alternative energies
+ Poverty measurement tools in use
Grameen Progress out of Poverty Index (PPI)
National poverty standard isued by the government

Partnerships

Current
Name	Relationship
VMFWG	Network Affiliation

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