"Leverage" to support job creation.

Loans to support job creation, maintenance, and expansion are one of the preferential credit programs effectively implemented by the Social Policy Bank (SPB) system in the province over the past years. Through this capital, the bank has contributed to shifting the structure of industries and labor from purely agricultural production to higher-income production and business sectors. This capital has helped many workers, families, and businesses create stable jobs, attract a portion of the local unemployed, and contribute to the goal of sustainable poverty reduction and wealth creation.

Officials from the Social Policy Bank branch in Lam Thao district are checking the effectiveness of the employment loan for Mr. Le Van Phong's family in Zone 2, Cao Xa commune.

The effectiveness of cash transfers.

The Employment Creation Loan Program (ECL) is one of the policy credit programs that combines various sources of funding for lending, such as: capital from the National Employment Fund, capital mobilized by the Social Policy Bank, and entrusted funds at the local level. This has supplemented the capital base, enabling the Social Policy Bank in the area to effectively and qualitatively implement the policy credit program. Through these sources of funding, the Provincial Branch of the Social Policy Bank has supported lending to vulnerable workers, ethnic minorities, and rural workers, giving them access to preferential credit to expand and develop their production and business activities, contributing to job creation for themselves, their families, and the community.

Actively implementing the job creation loan program, by the end of October 2024, over 1,000 workers in Lam Thao district had received support to create, maintain, and expand jobs using this preferential capital. Many workers not only overcame difficulties but also expanded production, rising to become well-off households in the locality. Before deciding to switch to egg-laying chicken farming, Mr. Le Van Phong, residing in Zone 2, Cao Xa commune, Lam Thao district, had spent many years marketing consumer goods. Unstable income and frequent long-distance work made life difficult for his family. In 2020, Mr. Phong discussed with his wife renting 5% of the commune's land to build a chicken coop for egg production. However, investing in a 600m2 chicken coop required a large amount of capital, which the couple's savings were insufficient. Recognizing the urgent need for capital to develop his family's economy , the local authorities facilitated a 50 million VND loan for Mr. Phong from the Social Policy Bank's entrusted loan program, channeled through the Youth Union. This direct funding helped his family's livestock farming business thrive. Not long after, Mr. Phong fully repaid both the principal and interest to the bank. In November 2023, he and his wife received another 200 million VND loan from the same source to expand their farm to 1,200 square meters. Mr. Phong shared: “We invested the borrowed capital and made a profit. To date, our farm, with 12,000 egg-laying chickens, generates a profit of 350-400 million VND per year. At this rate, my family will strive to repay the loan to the bank as soon as possible.”

After receiving a GQVL loan, the family of Mr. Ban Van Ty in Du area, Xuan Son commune, Tan Son district, invested in buffalo farming, thereby rising out of poverty.

Recently, the family of Mr. Ban Van Ty, a Dao ethnic minority member from Du area, Xuan Son commune, Tan Son district, has been removed from the list of near-poor households in the commune. Sharing his joy with us, Mr. Ty said: “Life in the mountainous region relies year-round on livestock farming and cultivation. With four mouths to feed and little farmland, my wife and I could only raise a few ducks and pigs to improve our daily lives. When officials provided information and facilitated access to preferential interest rate loans for near-poor households, I boldly decided to raise buffaloes for breeding. In 2023, with an additional 100 million VND loan from the Job Creation Fund, I bought five more buffaloes. All the buffalo calves are healthy, and my wife and I no longer worry about unemployment. Now we are determined to work hard to repay the debt and support our children's education.”

These are just two of many production development projects that, after receiving loans from the Job Creation Fund, have proven effective, providing stable income for families. To ensure that loans are used effectively, in accordance with regulations, and for the objectives of the lending program, every year, the provincial authorities, including the Department of Labor, War Invalids and Social Affairs, the Department of Finance, the Department of Planning and Investment, the Provincial Branch of the Social Policy Bank, and local authorities, coordinate with political and social organizations at all levels to develop plans, implement lending, and monitor the implementation of loan projects.

As of the end of October 2024, the total loan disbursement for job creation in the province reached over 146 billion VND, providing loans to 2,326 customers. This created jobs for 2,422 workers, including nearly 1,300 women and 86 ethnic minority workers. The loan projects mainly served the needs of vocational retraining, key agricultural economic development, small-scale industries, mechanics, carpentry, weaving, livestock farming, poultry farming, and aquaculture. The total outstanding loan balance for the job creation program has reached nearly 739 billion VND, an increase of over 48 billion VND compared to the end of 2023. Currently, there are 12,379 customers with outstanding loans.

Overcoming difficulties

The loan program supporting job creation, maintenance, and expansion has contributed to increasing income for workers and businesses, opening up new economic development models at the local level, providing employment for a segment of the unemployed and underemployed, and contributing to poverty reduction. Following the issuance of Government Decrees 61/2015/ND-CP and 74/2019/ND-CP, more opportunities have been created for policy beneficiaries to access loans for job creation, maintenance, and expansion, especially for workers in rural areas and urban areas.

The GQVL loan projects in Cam Khe district are mainly invested in aquaculture, livestock, and poultry farming, providing stable income.

However, the implementation of this loan program currently faces several difficulties: The current loan capital is insufficient to meet the needs of the people; the supplementary capital from the National Employment Fund is low annually, and the entrusted capital transferred from localities to supplement lending is limited; the capital is mainly mobilized by the Social Policy Bank. Currently, the proportion of capital for job creation loans in the total loan capital of credit programs in the province is modest, accounting for only over 11.6% of the total loan capital of the Provincial Social Policy Bank Branch. Therefore, this capital currently does not meet the needs of workers, especially for production and business establishments and enterprises.

Despite being located in a mountainous area facing many difficulties, the Tan Son District Branch of the Vietnam Social Policy Bank has actively implemented the job creation loan program. In the first 10 months of 2024, the branch disbursed over 4.5 billion VND in loans, creating jobs for 62 workers. As of October 31st, the total outstanding loan balance of the job creation loan program reached nearly 34 billion VND with 446 customers. Thanks to the loan capital from this credit program, jobs have been created, maintained, and expanded for unemployed workers in the communes of Long Coc, Minh Dai, Van Luong, Xuan Dai, etc.

Comrade Tang Tien Sy - Director of the Transaction Office shared: “The biggest difficulty for the unit when implementing job creation loans is the limited annual growth rate of allocated capital, while the demand for job creation from workers and production and business establishments in the area is very large. The outstanding loan balance of this capital accounts for a low proportion, only reaching 5.29% of the total outstanding loan balance of credit programs being implemented in the district.”

While funding for the program remains limited, and a segment of the population is still affected by the COVID-19 pandemic and the recent Typhoon No. 3, the Provincial Branch of the Social Policy Bank has regularly coordinated with entrusted political and social organizations to strengthen the dissemination of the Party and State's policies to the people. The bank also coordinates in guiding lending to the right target groups, educating borrowers on using loan capital for the intended purpose, and managing and monitoring policy implementation to maximize the effectiveness of loan capital; integrating credit guarantee activities with agricultural and industrial promotion programs and technology transfer to improve the efficiency of capital utilization in production and business development projects, creating jobs for workers.

In order to simultaneously implement 20 policy credit programs effectively, the Provincial Branch of the Social Policy Bank continues to implement solutions to promote timely disbursement of loans for job creation, ensuring that preferential capital reaches the right beneficiaries to invest in production and business, address the need for job creation, maintain and expand employment, and contribute to supporting people in overcoming difficulties, restoring and developing the economy after suffering negative impacts from the COVID-19 pandemic and floods caused by typhoon No. 3.

To further enhance the effectiveness of preferential loan capital for job creation and other policy credit programs, Mr. Nguyen Thanh Tinh, Deputy Director of the Provincial Branch of the Social Policy Bank, stated: “In the coming time, the Provincial Branch of the Social Policy Bank requests that Party committees and authorities at all levels continue to pay attention to directing and creating favorable conditions for policy credit activities in the area. Annually, priority should be given to allocating more capital from the local budget to the Social Policy Bank to supplement loan capital for poor households and other policy beneficiaries, including the job creation loan program. From there, this capital will truly become a ‘lever’ contributing to the successful implementation of national target programs in the locality.”

Hong Nhung

Source: https://baophutho.vn/don-bay-ho-tro-giai-quyet-viec-lam-223221.htm