With support from Youth Union branches across Ho Chi Minh City, many young people, students, and pupils have gained access to preferential loans from Vietnam Bank for Social Policies (VBSP) to invest in production and business, improve their livelihoods, and continue their educational journeys.
Youth union loan program helps young entrepreneurs turn ideas into reality
In September last year, while struggling to secure funding to open a morning coffee shop, Nguyen Thi Minh Thu, a resident of Quarter 23 in Thoi An Ward, was introduced by local Youth Union members to a loan program from the Social Policy Bank. She quickly completed her application and submitted it to the local Youth Union for appraisal.
"From application to disbursement, it took just one month. The procedures were quite straightforward. I received a loan of VND100 million over five years, with an annual interest rate of 7.9 percent," Thu said.
Using the loan, she invested in equipment, tables, chairs, and utensils, and launched her coffee shop. After more than five months of operation, the business has maintained a stable customer base, generating an average daily revenue of around VND400,000. Thu described the income as relatively stable, noting that the shop only requires a few hours each morning, allowing her to spend the rest of the day caring for her young child and handling other work.
Similarly, Ngo Truong Thinh, a resident of Quarter 36 in Trung My Tay Ward, accessed a VND100 million loan in September 2025 through a local Youth Union referral. He invested the funds in a high quality computer system to support his programming work and studies in software engineering.
"During the application process, youth union staff provided detailed guidance, which helped me complete the paperwork quickly and access the loan early," Thinh said.
Young man Nguyen Thanh Long, from Quarter 32 in Trung My Tay Ward, first learned about the program in 2021 and has since taken out loans twice, once in 2021 and again in 2024, each worth VND50 million over a two year term. He used the funds to purchase welding machines, cutting tools, and materials for his metalwork and repair business.
Inspired by Long’s experience, Nguyen Thi Vinh, who lives in the same neighborhood, also applied for a VND100 million loan to invest in equipment for her family’s industrial electrical repair business.
Youth union expands loan program, boosting opportunities for HCMC youth
Nguyen Thanh Liem, a Youth Union official in Trung My Tay Ward in charge of the program, said the loan initiative has long supported job creation for young people and educational opportunities for students. Since July 1, 2025, in addition to managing existing loans, the ward Youth Union has intensified outreach efforts to expand awareness among members and students.
Beyond direct communication at the neighborhood level, the Youth Union has also organized livestream sessions on its fanpage to introduce the program to a wider audience.
"Previously, youth could borrow up to VND100 million at an annual interest rate of 7.92 percent. This has now increased to a maximum of VND200 million. Students can access loans of up to VND160 million at 6.24 percent. Graduate students or those pursuing science and engineering fields can borrow up to VND800 million," Liem said.
Since July 1, 2025, more than VND4 billion has been disbursed through the ward Youth Union to support employment and education loans for young people.
Luong The Anh, Deputy Secretary of the Youth Union in Thoi An Ward, said local neighborhoods serve as initial referral and verification channels before applications are forwarded to the Youth Union of the ward for appraisal and coordination with the Social Policy Bank.
"Loan disbursement is now fast, interest rates are stable, and no collateral is required. This has created real opportunities for young people to stabilize their livelihoods," he said.
In the first quarter of 2026 alone, nearly VND1.8 billion was disbursed to support youth employment, while about VND150 million was allocated for student loans.
According to Director Tran Van Tien of the Ho Chi Minh City branch of the Social Policy Bank, approximately VND1.9 trillion will be allocated in 2026 to support loans for job creation, maintenance, and expansion, including for young people. More than VND300 billion will be set aside for student loans.
The funding is expected to help create, maintain, and expand employment for over 8,000 young people, while enabling more than 6,000 disadvantaged students to access educational loans, including over 400 pursuing STEM fields.
