From loans to women s economic empowerment

In Danang, women are utilizing policy credit to launch or expand their business endeavors. Doan Ngoc Chung, director of the Danang Branch of the Vietnam Bank for Social Policies (VBSP), disclosed that by the end of 2025, the Danang Branch had extended loans through the Vietnam Women’s Union to 26,774 customers, amassing total disbursements of $78.72 million.

In the first eight months, figures stood at 16,369 customers and $56.52 million. Nationwide, policy credit is being harnessed to empower women economically. As of June 30, outstanding policy credit managed in conjunction with socio-political organizations totaled $17.88 billion, representing 98.39 percent of the bank’s total outstanding loans.

Loans overseen by the Vietnam Women’s Union alone amounted to $6.69 billion, a $552.04 million increase from the end of 2025 and accounting for 37.40 percent of total entrusted outstanding loans. The union manages 59,770 Savings and Credit Groups, serving nearly 2.5 million customers. This data indicates that women constitute a significant beneficiary group of policy credit, with demand for financing arising not only from those already operating businesses but also from those aiming to establish new livelihoods.

Women can access funding for various purposes, such as purchasing livestock, investing in facilities, stocking inventory, or bolstering working capital. Established businesses can also leverage financing to scale up operations and boost income. According to Chung, a loan's efficacy hinges on the borrower's capabilities and the family's circumstances.

A well-crafted business plan does not necessitate a large-scale operation. A modest production facility, small shop, herd of livestock, suitable production model, or service business with steady demand can yield substantial income. The crucial aspect is that the loan is utilized for its intended purpose, adhering to the planned business model, and possesses the potential to generate income for debt repayment.

Policy credit broadens women's access to finance. However, effective implementation necessitates a comprehensive support system. In addition to capital access, borrowers require assistance in production knowledge, management, sales skills, technology adoption, and market linkages. The Vietnam Women’s Union and other socio-political organizations can play a pivotal role in this regard.

Nationwide, the $6.7 billion in outstanding loans managed through the Vietnam Women’s Union, supporting nearly 2.5 million customers via 59,770 Savings and Credit Groups, underscores how policy credit is increasingly intertwined with women’s economic activities and livelihoods. This capital is not solely valued for its monetary worth but also for its capacity to foster sustainable economic activities, transforming small-scale models into stable income sources and enabling women to become employers for others.

The interconnected network linking VBSP with borrowers forms the backbone of Vietnam’s policy credit system, facilitating capital flow to communities, monitoring usage, and reinforcing financial discipline.