Public Credit Fuels Livelihoods and Housing Access in Hai Phong, Vietnam

Hai Phong, Vietnam is experiencing a surge in economic opportunity and improved living standards thanks to strategically allocated public credit programs. These initiatives, managed by the Vietnam Bank for Social Policies (VBSP), are providing crucial capital to individuals and businesses, fostering job creation, and expanding access to affordable housing.

Expanding Access to Capital for Entrepreneurs

Chu Manh Cong, a resident of Thanh Dong district, exemplifies the impact of these programs. He recently secured a loan of 200 million Vietnamese Dong (VND) through the VBSP’s job creation support program Vietnam Bank for Social Policies. Combining this with his personal savings, Cong purchased a used car to launch a passenger transportation service, escaping precarious employment and securing a stable income for his family.

Similarly, Nguyen Thi Ha, a grocery store owner in Le Thanh Nghi district, utilized a 230 million VND loan to renovate and expand her business, diversifying her product offerings and bolstering her family’s financial security.

Increased Loan Amounts to Drive Growth

Government Decree 338/2025/ND-CP has further amplified the impact of these programs by increasing loan limits. Loans to workers have been raised from 100 million to 200 million VND per application, while loans to production and commercial enterprises have increased from 2 billion to 10 billion VND per application.

Social Housing Initiatives Provide Stable Homes

Public credit is also playing a vital role in addressing housing needs. Within the Him Lam – An Hong social housing project in Hong An district, 60 clients received nearly 26 billion VND in loans during the first two months of 2026 to facilitate homeownership.

Pham Van Than, a resident of An Thanh commune, benefited from a 720 million VND loan to purchase a 52 square meter apartment. After years of renting, his family will soon have the stability of owning their own home, creating a more conducive environment for his children’s education.

Significant Investment from Local and Central Governments

The city of Hai Phong has demonstrated a strong commitment to these programs, allocating 1 trillion VND from its local budget to the VBSP for preferential credit programs in 2026 – the largest such allocation in the city’s history. This funding is distributed across job creation, social housing, support for individuals re-integrating into society after serving sentences, and student loan programs.

In addition to local funding, the central government has contributed an additional 500 billion VND to the job creation support program, 290 billion VND to social housing, and 200 billion VND to programs improving access to drinking water and sanitation in rural areas.

Effective Disbursement and Positive Outcomes

The Hai Phong branch of the VBSP has ensured the timely and efficient disbursement of these funds. In the first two months of 2026 alone, the bank disbursed over 1.315 billion VND to 13,436 borrowers, creating 9,548 jobs, financing 6,482 projects related to drinking water and sanitation, and supporting 212 home purchases or constructions.

As of the end of February 2026, outstanding public credit in the region totaled over 15,246 billion VND, an increase of nearly 986 billion VND from the previous year.

“It also allows credit policies to be effective in supporting employment, reducing poverty and contributing to local socio-economic development,” said Vu Tuan Hung, Deputy Branch Manager of the Social Policy Bank in Hai Phong.

These figures demonstrate the effectiveness of public credit as a sustainable source of capital, empowering families, stimulating economic growth, and improving the quality of life for residents of Hai Phong.