Social policy credit has become an important source of financial support for disadvantaged residents across Ho Chi Minh City, helping many households repair their homes, improve living conditions, and secure more stable incomes.
Policy loans help families rebuild and thrive
In recent years, social policy credit has reinforced its role as an effective tool in promoting social welfare and supporting economic development.
Nguyen Thi Thanh, a resident of Neighborhood 47 in Thoi An Ward, is among those who have successfully used loans from the Vietnam Bank for Social Policies to improve her family's livelihood.
She works as a home-based garment worker and owns three small rental rooms that provide her family's main source of income. In 2020, the rental rooms had deteriorated and were frequently flooded, prompting tenants to move out. Without the money needed for repairs, the rooms remained vacant for several years.
After learning about the ward's entrusted lending program, she borrowed VND50 million from the Vietnam Bank for Social Policies to repair her home and renovate the rental rooms.
Following the renovation, the rooms were rented out again, increasing her monthly income by more than VND7 million (US$269), while her monthly loan repayment is only about VND1.3 million.
The preferential loan not only helped my family repair our home and restore the rental rooms but also created an additional source of income and stabilized our lives, Thanh said.
Bui Van Hong, a resident of Neighborhood 17 in Trung My Tay Ward, shared a similar experience. His house had been in poor condition for years, but he lacked the financial resources to renovate it. Through his local neighborhood committee, he gained access to a policy loan from the Vietnam Bank for Social Policies, allowing him to completely refurbish the house.
Another successful borrower is Nguyen Thi My Thoa of Neighborhood 27 in Thoi An Ward.
Her family was classified as low-income and lived in a house inherited from her parents that had fallen into disrepair. A few years ago, local authorities helped her obtain a VND100 million loan from the Vietnam Bank for Social Policies to raise the floor level and replace the roof, eliminating persistent leaks and flooding.
She recalled that her family has recently welcomed two new members, so they need to renovate the loft to give the children their own space. Once her current loan is fully repaid, she plans to borrow again to continue repairing the house. Besides housing loans, the Vietnam Bank for Social Policies has also provided her with a VND100 million business loan to lease farmland for vegetable cultivation. Thanks to that support, her family's life has gradually become more stable.
Social policy loans boost housing and jobs in HCMC
In Thoi An Ward, many low-income residents have accessed loans from the Vietnam Bank for Social Policies, particularly those seeking financing to build, renovate, or repair homes for personal use or rental purposes.
Borrowers may obtain loans of up to 70 percent of the estimated project cost or financing plan, capped at VND500 million and not exceeding 70 percent of the value of pledged collateral.
Interest rates are determined by the Prime Minister for each period and currently stand at 6 percent per year. Loan terms can extend for up to 25 years from the date of the first disbursement.
To apply, borrowers submit a loan application along with a proposed use of funds. Bank officials then conduct on-site assessments to determine an appropriate loan amount. The streamlined approval and disbursement process helps ensure funds reach borrowers promptly.
In Trung My Tay Ward, local authorities approved 27 loans in 2026 to help residents repair rental housing and expand business premises.
According to the Ho Chi Minh City branch of the Vietnam Bank for Social Policies, total outstanding policy credit reached VND27.65 trillion by the end of May 2026, an increase of 9.12 percent compared with the end of 2025.
The funding has enabled tens of thousands of poor households, workers, and other policy beneficiaries to access capital for economic development and improved living standards.
During the first five months of 2026, the bank disbursed VND4.877 trillion in loans to more than 54,000 poor households, near-poor households, and other eligible beneficiaries. Loan repayments during the same period totaled VND3.08 trillion, equivalent to 63 percent of total loan disbursements.
Social policy credit has helped more than 1,300 poor and near-poor households invest in production and business activities while creating, maintaining, or expanding employment for more than 16,000 workers.
The program has also supported more than 7,200 households in building or upgrading over 14,400 clean water and sanitation facilities, and has helped low-income residents purchase more than 300 social housing apartments.
