The "sweet" flow of capital amidst the vast ocean of Bach Long Vi (Part 2)

Bringing social policy credit to Bach Long Vi island district has been a challenging and arduous process. However, with unwavering determination and effort, the "sweet" capital from the Social Policy Bank (NHCSXH) has contributed to improving the lives of local fishermen, boosting local economic development, and transforming Bach Long Vi from a barren, arid land into a miniature city in the heart of the ocean.

Trustworthy strangers

Overcoming countless hardships in his early days on the island, Mr. Tran Chi Trang (residential area No. 1), like many other fishermen, embarked on his fishing career. Bach Long Vi is one of the eight largest fishing grounds in the country, with abundant marine resources, requiring long fishing trips. Going out to sea requires a large amount of capital, forcing him to borrow money at high interest rates from relatives and friends. But "fate changed," and his family's efforts were overlooked. After each trip, he never recovered his capital because the cost of fuel and fishing gear was too high, and the small size of his boat meant a small catch. Living with the profession for so long, yet remaining poor, he sometimes felt discouraged and considered giving up the profession altogether.

Mr. and Mrs. Tran Chi Trang are busy preparing their fishing gear for the day's fishing trip.

Nevertheless, upon hearing that he was eligible for a loan from the Social Policy Bank, he decided to borrow the first 50 million VND to repair his boat and replace his fishing nets, changing his fishing area and traditional methods. Initially, he faced many difficulties because the island had many underwater rocks and rough seas, but everything passed, and his family began to have enough to eat and a comfortable income to build a house on the mainland. The gradual improvement in their lives motivated them to raise their three children, educate them, and fulfill their dream of attending a literacy class organized by the border guards.

Also among the families who have experienced a dramatic transformation since receiving capital from the Social Policy Bank, Mr. Vu Van Quan shared that he and his wife came to the island with nothing but 8 million dong and 15 kilograms of rice provided by the government. To raise money to buy a fishing boat, he had to ask relatives on the mainland to mortgage their assets because he had no collateral. Since receiving a 100 million dong loan from the Social Policy Bank to buy an oil tanker, he was overjoyed because, for the first time, a stranger believed in his legitimate business and commitment to integrity. This boost in morale became a powerful motivation for them to expand their business. Today, his family owns a spacious property, a 140-m³ diesel oil tanker, and a cargo ship for providing logistics services for the fishing industry.

Mr. Vu Van Quan and officials from the Vietnam Bank for Social Policies (VBSP) on the ship, with the support of policy credit.

After 8 years, policy credit capital is present on Bach Long Vi Island. Mr. Nguyen Ngoc Son, Director of the Vietnam Bank for Social Policies (VBSP) branch in Hai Phong City, said that as of October 31, 2024, the total outstanding loan balance on the island was nearly 9.1 billion VND, supporting 94 workers with loans (of which more than 7.4 billion VND was mobilized by the central VBSP, and 1.6 billion VND was transferred from the city budget to the VBSP for lending). The main purposes of the customers' loans are trading services (selling seafood, groceries, essential goods, fuel...), accommodation and food services, fishing, and livestock farming. Currently, the demand for loans to build clean water and sanitation systems is also increasing, so the VBSP has proactively advised and reported to the leadership at all levels to supplement capital to meet these needs.

Responsibility of the first and only source of capital

Although there is no branch office on the island, Mr. Pham Minh Duc, a member of the Vietnam Bank for Social Policies (VBSP) in charge of Bach Long Vi district, said that once a month, he and other members of the VBSP Hai Phong City branch conduct transactions at the district's transaction point. During these transactions, VBSP officials collect principal and interest payments, disburse loans promptly to the people, and hold meetings with the district's Farmers' Association and heads of savings and loan groups to disseminate new policies and review the loan needs of the island's residents. Based on this assessment, the officials advise and propose to the VBSP Hai Phong City branch to compile a report for the head of the city's representative office to allocate additional capital to support the people in a timely manner.

To ensure the Vietnam Bank for Social Policies (VBSP) successfully fulfills its mission of providing capital to the frontline islands, Mr. Nguyen Ngoc Son affirmed that Directive No. 40-CT/TW dated November 22, 2014, of the Central Party Secretariat on strengthening the Party's leadership over social policy credit serves as a "guiding principle" for all activities. Accordingly, the Hai Phong City government, as well as local authorities, have given special attention to the people on the islands, considering supporting their economic development and stable livelihoods as a key task. This attention is most clearly demonstrated in the readiness to allocate resources and create the best conditions for VBSP staff to provide capital support to the people. The Party Committee and government of Hai Phong City always consider the allocation of additional entrusted capital through the VBSP to provide loans to meet the needs of beneficiaries in the area as a regular annual activity and proactively implement it from the budget planning stage each year of each locality; This ensures that the loan needs are met closely, aligning with the aspirations of the island's residents and balancing with the budgetary capacity of Hai Phong City.

Specifically, according to the reporter's investigation, Bach Long Vi is a district without commune-level administrative units, and the task of ensuring national security and defense is prioritized above all else, resulting in negligible revenue for the state budget. Therefore, Bach Long Vi does not have entrusted capital from the district to the Social Policy Bank, but the role of state management and the responsibility of the head of the district government regarding policy credit activities at the grassroots level are demonstrated in many other aspects.

The Director of the Vietnam Bank for Social Policies (VBSP) in Hai Phong City shared that the resources provided by Directive No. 40-CT/TW are not only entrusted capital from the central government to the local level, but also other factors. The Party Committee and the government of the island district provide transportation support for VBSP staff, as the cost of a single trip can reach 300-400 million VND; they arrange a two-way ferry schedule between the island and the mainland that is relatively suitable for transaction times, and promptly notify the VBSP about ferry schedules so that they can proactively complete their tasks; they provide support and create favorable conditions in terms of infrastructure for conducting transactions, as well as accommodation and meals for VBSP staff to work confidently on the island. They also direct associations, organizations, and heads of residential areas to participate in savings and loan groups, working with the VBSP to systematically monitor and evaluate loan effectiveness, and assist the VBSP in debt collection if there are any risks...

"Without this support, the Vietnam Bank for Social Policies (NHCSXH) could not have become the only bank successfully channeling capital to a specialized area like Bach Long Vi," Mr. Nguyen Ngoc Son affirmed.

However, ensuring a steady flow of capital from the mainland to a remote and vulnerable area like Bach Long Vi is extremely difficult. Major storms, before affecting the mainland, always sweep through Bach Long Vi with the highest intensity, posing the biggest risk currently. The island's economy relies primarily on fishing and related logistics services. Natural disasters not only directly impact loan customers but also the bank. During the stormy months of August and September, with very high waves, even bank staff with good health and years of experience at sea cannot avoid seasickness, and travel time can extend to 12-13 hours. Normally, each trip lasts 2-3 days, but during bad weather, when there are no boats returning, bank staff have to stay on the island for up to a week, affecting their work on the mainland.

In addition, Mr. Nguyen Ngoc Son stated that other preferential loan programs, such as poverty alleviation loans, are difficult to implement because there are almost no poor or near-poor households; on the island, all households have children of school age, but it is impossible to provide loans under the student loan program because children who pass primary school age will be sent back to the mainland for better educational opportunities.

Fishermen are delighted to have access to policy-based credit on the island.

"Despite many difficulties and challenges, the greatest motivation for the staff of the Vietnam Bank for Social Policies (VBSP) to persevere in bringing capital from the mainland to the island district is to ensure a continuous and smooth flow of funds, promptly meeting the borrowing needs of customers; the quality of credit on the island district remains good. People on the island district have access to preferential loans to develop their economy. The lives of the people of Bach Long Vi are increasingly improving, and households are confident in staying on the island and fishing," affirmed the Director of the VBSP in Hai Phong City.

Source: https://thoibaonganhang.vn/dong-von-ngot-giua-trung-khoi-bach-long-vi-bai-2-158482.html