Lam Dong compares and classifies debt to improve policy credit quality

"Go to every alley, knock on every door"

At more than 8:00 a.m. on August 19, 2025, at the Ting Wel Dang Cultural House Hall, Bac Gia Nghia Ward, it was quite bustling. Nearly 60 households borrowing from the village brought their loan books to compare with officers from the Dak Nong Social Policy Bank Transaction Office.

Ms. H. Joan was present quite early at the village hall to check. According to Ms. Joan, in 2023, she was able to borrow 50 million VND from the Social Policy Bank to invest in a coffee garden. Thanks to the preferential loan, her family did not have to run around to borrow money like in previous years. “My family paid the principal and interest in accordance with regulations. The head of the savings and loan group and the staff of the Social Policy Bank always guided me through all the documents and procedures, so my family felt very secure,” Ms. Joan shared.

According to Mr. Nguyen Tien Ha - Deputy Director of the Lam Dong Social Policy Bank Branch, and Director of the Dak Nong Social Policy Bank Transaction Office, the unit currently has outstanding debt of over 450 billion VND, with more than 6,900 borrowers. Up to now, the unit has coordinated to compare and classify more than 50% of customers. "Through comparing and classifying debts, we have not detected any errors. The assigned staff has informed the borrowers about their rights and obligations when participating in the loan," said Mr. Ha.

According to Mr. Ha, the Social Policy Bank has provided guidance on how to check interest receipts, savings receipts and loan repayments. Difficulties and problems in the borrowing process are promptly reported, helping the unit to have effective solutions. Through debt comparison and classification, the Social Policy Bank has integrated village, commune and ward meetings to improve policy credit at the grassroots level. In addition, the bank will review people's borrowing needs to deploy loans for capital sources allocated in the following years.

Focus on accurate classification

According to the Lam Dong Provincial Branch of the Vietnam Bank for Social Policies, the debt reconciliation and classification is carried out by the bank periodically every 3 years. In Lam Dong, since the beginning of August 2025, the Provincial People's Committee has issued a plan to reconcile and classify customer debts in 2025.

Immediately after the plan of the Provincial People's Committee, the Lam Dong Social Policy Bank Branch urgently coordinated with localities, political and social organizations to receive the assignment to carry out debt reconciliation and classification. In communes, wards and special zones, 100% of the principal and interest balance has been classified and compared starting from August 15, 2025.

The People's Credit Fund has a specific plan for assigning tasks to each member of the debt classification and reconciliation team. The People's Committees of communes, wards and special zones have established steering committees for debt classification and reconciliation, and have organized extensive propaganda to the people. In particular, policy loan borrowers, the poor, near-poor... are actively encouraged to participate fully, at the right time and place as prescribed.

The work of comparison and classification is deployed by the Social Policy Bank to each village, hamlet, and residential group to ensure accuracy and transparency. During the classification process, any problems that arise are effectively handled by the parties. According to the provincial Social Policy Bank, the debt classification and comparison is carried out by the unit in accordance with regulations. Through this activity, the Social Policy Bank and localities can grasp the quality of policy credit in the area.

In fact, most savings and loan organizations have been compared, classified debts, and the quality of operations has been improved. Borrowers have been more aware of their obligations to pay interest, participate in saving deposits, and repay principal when due. From here, the credit quality of policy programs has been continuously improved and enhanced.

After completing the debt reconciliation and classification, the provincial branch of the Vietnam Bank for Social Policies will coordinate with local authorities and entrusted political and social organizations to summarize and evaluate the credit situation of each locality. From here, the unit will gradually implement management solutions to improve the efficiency and quality of policy credit activities.