Directive No. 40-CT/TW: Multiplying the effectiveness of social policy credit

Over the years, preferential capital from the Vietnam Bank for Social Policies (VBSP) has actively supported the hunger eradication and poverty reduction in Tay Ninh province. In particular, since the implementation of Directive No. 40-CT/TW dated November 22, 2014 of the Central Party Secretariat on strengthening the Party's leadership over social policy credit, the participation of local Party committees, authorities and unions has been stronger, helping preferential loan programs to be more effective.

From preferential capital from the Vietnam Bank for Social Policies, many households have boldly developed production and livestock models that bring high economic value.

Recalling the time in 2015, Mr. Tran Van Hong, in An Quoi quarter, An Hoa ward, Trang Bang town, was still very emotional when he first received a preferential loan from the Vietnam Bank for Social Policies. “At that time, my family was in a difficult situation, had unstable jobs, and lacked capital for production and business,” Mr. Hong said.

However, guided by the Neighborhood Management Board and Women's Union to join the Savings and Loan Group of An Quoi Neighborhood, Mr. Hong's family was evaluated and guided through the loan procedures for the Job Creation Program in the amount of 50 million VND.

Chau Thanh District People's Credit Fund staff disburses at commune transaction point

Receiving a loan from the Social Policy Bank, with the advice of the Ward Women's Union, and the enthusiastic guidance of local sectors, Mr. Hong's family decided to invest in producing rattan and bamboo products such as tables, chairs, ladders, beds, folding shelves, etc. "With low interest rates, not creating much pressure to pay interest, I feel very secure in producing products. Initially, the products made were accepted by the market and gradually made a profit, enough to cover costs, reducing the family's economic difficulties," Mr. Hong shared.

Over many years of savings, Mr. Hong's family has bought more machines and equipment to serve the work, creating a basic and stable source of income for the family and creating stable jobs for 5 workers from poor households without jobs in the locality, with each worker's monthly income ranging from 5 to 7 million VND.

Thanks to the preferential loan capital from the Social Policy Bank of Trang Bang town to produce and develop the family economy, increase income, stabilize life and rise up. By 2023, Mr. Hong's family had paid off the old loan and the members of the Savings and Loan Group agreed to meet to consider the proposal of the Social Policy Bank to re-loan the job creation support program to maintain and expand jobs, with an amount of 100 million VND to buy more raw materials such as rattan and bamboo leaves to serve the production of products.

According to the Tay Ninh branch of the Vietnam Bank for Social Policies, with the capital from the central budget and local budgets allocated in the period of 2014-2024, the Vietnam Bank for Social Policies has helped 293,843 poor households, near-poor households and policy beneficiaries to borrow capital with an amount of 7,631.4 billion VND. The total outstanding debt as of April 30, 2024 reached more than 4,000 billion VND, an increase of 2,780 billion VND compared to the time of implementing Directive No. 40-CT/TW. The average annual growth rate reached 20.0%, with 120,174 poor households and policy beneficiaries still having outstanding debt, the average outstanding debt was more than 34.7 million VND/household, an increase of 20.7 million VND compared to 2014 (the average outstanding debt in 2014 was 14.0 million VND/household). Credit scale is expanded, credit quality is increasingly consolidated and improved.

“With the initial valuable capital borrowed from the People's Credit Fund, my family was able to have capital for production. With my own will and efforts, my family was able to escape the poverty of the past,” Mr. Hong said emotionally.

As a party member and a former public security officer, after being discharged from the army, instead of going to the city to find a job, Nguyen Van Minh in Phuoc Lap hamlet, Phuoc Vinh commune, Chau Thanh district decided to stay in his hometown to develop the economy. At first, he helped his family cultivate about 1 hectare of rice fields to grow 2 crops a year, but the family still had difficulties. "In my mind, I always wanted to have capital to produce, do business, and raise livestock to develop the family economy," Minh confided.

Introduced and promoted by the Commune Women's Union, Mr. Minh learned about the loan program for households doing business in difficult areas of the Social Policy Bank. In 2017, he applied for a loan and was considered by the hamlet and commune, creating favorable conditions to support him to borrow capital from the Social Policy Bank of Chau Thanh district with an amount of 50 million VND. After receiving the loan from the Social Policy Bank, Mr. Minh invested in building barns and bought 2 breeding cows and 10 hybrid pigs. Thanks to his active participation in agricultural extension sessions organized by the commune and especially thanks to the guidance and instruction of the brothers and sisters in the Women's Union and the Savings and Loan Group, Mr. Minh has gained a lot of knowledge and experience in raising cattle and pigs, so his herd of cows and pigs has grown more and more.

After 1 year, his family's "assets" included 4 cows and a herd of 30 hybrid wild boars. On average, selling hybrid wild boars every month, after deducting expenses, Mr. Minh earned a profit of about 7 million VND, so he paid off the bank loan very quickly. In 2023, due to the need to expand the barn, with the attention of the local government, Mr. Minh boldly registered and continued to receive a loan of 80 million VND from the Social Policy Bank to create jobs to expand the hybrid wild boar and breeding cow farm. Up to now, Mr. Minh has 2 hybrid wild boar farms in Chau Thanh district and Tan Bien district.

“Currently, I have a herd of 50 hybrid wild boars and 4 breeding cows, hundreds of free-range chickens, earning over 10 million VND per month. Creating regular jobs for 2 workers. Becoming a well-off household in Phuoc Vinh commune like today, I would like to express my gratitude to the Party, the State, and the Social Policy Bank for creating conditions for my family to borrow capital. The preferential capital source of the Social Policy Bank is very meaningful for the border communes that are still facing difficulties, helping people to produce, do business, earn income, and stabilize their lives,” said Mr. Minh.

Capital from the Vietnam Bank for Social Policies helps Mr. Tran Van Hong's family develop an effective bamboo and rattan weaving workshop.

According to the results of the investigation and review of poor and near-poor households at the end of 2023, the population of Tay Ninh province is nearly 1.8 million people with 322,582 households, of which poor and near-poor households according to the multidimensional poverty standard are 2,083 households, accounting for 0.65% of the total number of households (including: 512 poor households, accounting for 0.16% and 1,571 near-poor households, accounting for 0.49%). Compared to the year of starting to implement Directive No. 40, the rate of poor and near-poor households in Tay Ninh province has decreased sharply.

The above results have affirmed the correctness and effectiveness of Directive No. 40. According to the Standing Committee of Tay Ninh Provincial Party Committee, implementing Directive No. 40-CT/TW, Conclusion No. 06-KL/TW of the Secretariat, Decision No. 401/QD-TTg dated March 14, 2016 and Decision No. 1630/QD-TTg dated September 28, 2021 of the Prime Minister, the Standing Committee of the Provincial Party Committee issued documents directing, disseminating, propagating and implementing them throughout the Provincial Party Committee. On that basis, Party committees, Party organizations, authorities, the Fatherland Front and socio-political organizations at all levels have led and directed the organization of dissemination and implementation of Directive No. 40 to cadres and Party members, especially promoting the propaganda and dissemination of the Party and State's guidelines and policies on social policy credit to all classes of people.

Directive No. 40 has consistently directed to create a clear change in the awareness, leadership and comprehensive direction of Party committees from the Central to local levels regarding social policy credit, thereby policies and guidelines are implemented quickly, difficulties and problems are directly directed to be promptly resolved at the grassroots level.

In particular, implementing Directive No. 40, the People's Council, the People's Committee of the province and district levels continue to pay attention to arranging the annual budget, promulgating regulations on management and use of capital from the local budget entrusted through the Vietnam Bank for Social Policies to implement lending to poor households and other policy beneficiaries, and at the same time directing departments, branches and localities to review funds and capital from the budget to concentrate on one focal point of the Vietnam Bank for Social Policies to focus on management and promote the effectiveness of capital sources.

Mr. Dao Anh Tuan - Director of the Vietnam Bank for Social Policies, Tay Ninh province branch, said that in order to transfer policy credit capital to the right beneficiaries, at the same time improve credit quality, provide maximum support to the poor in a streamlined apparatus, and reduce management costs, the Vietnam Bank for Social Policies has implemented the direct lending method with the delegation of some work contents through socio-political organizations.

The activities of receiving entrustment from the VBSP have created conditions for socio-political organizations to gather forces, increase the number of members, consolidate and improve both the quantity and quality of the movement, contributing to strengthening the political system at the grassroots level. With this method, the combined strength of the entire political system from the central to local levels has been mobilized to transfer policy credit capital to the poor and other policy subjects in a timely manner, contributing to the implementation of poverty reduction policies, ensuring social security and building new rural areas in the locality.

Source: https://thoibaonganhang.vn/chi-thi-so-40-cttw-nhan-them-su-hieu-qua-cua-tin-dung-chinh-sach-xa-hoi-152646.html