Effectiveness of social policy credit programs

Over the past period, the Chau Phu District Branch of the Vietnam Bank for Social Policies (VBSP) has implemented a comprehensive range of solutions to enhance the effectiveness of VBSP credit programs. As a result, thousands of poor households and other policy beneficiaries in the district have accessed preferential capital to develop their economy, create jobs, and contribute positively to sustainable poverty reduction in the locality.

According to Nguyen Ngoc Thi, Deputy Director of the Chau Phu District Branch of the Vietnam Bank for Social Policies (VBSP), in the first four months of the year, over 89 billion VND was disbursed, providing capital to create jobs for more than 1,111 households through policy credit sources, contributing to local socio -economic development. In particular, it has made a positive contribution to the sustainable poverty reduction program. Currently, 15 policy credit programs are being implemented with a total capital of 633.443 billion VND, an increase of over 40 billion VND compared to the same period in 2024. To date, the total outstanding loan balance is 594.252 billion VND, with over 18,000 customers still having outstanding loans. Programs with large outstanding loan balances focus on lending to poor households, near-poor households, newly escaped poverty households, and loans for job creation… On average, each year, policy credit capital creates jobs and stable income for nearly 700 local workers.

Typically, Ms. Nguyen Thi Kim Tuyet (Cai Dau town), formerly a poor household with extremely difficult family circumstances, received a 50 million VND loan from the policy credit program, enabling her to invest in small-scale trading at Cai Dau market. “My family was struggling with capital for business, but thanks to the policy credit program from the Chau Phu District Branch of the Vietnam Bank for Social Policies, I now have a stable business, and my family's life is more comfortable. While selling, I also save up to buy more goods, expand my business, and develop my family's economy,” Ms. Tuyet shared.

Ms. Nguyen Thi Ngoc Giau (a broom maker in Binh My commune) said that her family used to raise ducks, but after the avian flu outbreak, they had to destroy the entire flock, leaving them with no capital. Her family had to borrow money from a commercial bank to make brooms to support themselves. Due to the high interest rates, the money they earned was only enough to repay the bank and partially cover their children's expenses, leaving them constantly struggling financially. In 2023, thanks to a referral from the Women's Union of the commune, and seeing the favorable interest rates, her family borrowed 40 million VND to expand their capital for purchasing broom-making materials and to invest in a sound system for wedding rentals, thus improving their family's economic situation. "Thanks to low interest rates and flexible repayment periods, my family is now paying interest and saving money to gradually repay the principal loan to the bank, and we still have some capital left over to cover our family's expenses," Ms. Giàu shared.

For example, Ms. Phan Thi Kim Thoa (Cai Dau town) received a 100 million VND loan in 2024 from the employment support program to maintain and expand her business. Using this capital, she invested in expanding her fresh flower business at Cai Dau market. As a result, she has gained a stable income, gradually improving her family's living standards. “Previously, I borrowed money from outside sources at very high interest rates, making business very difficult. Thanks to the Social Policy Bank branch in the district providing credit, I was able to continue my business without paying high interest. Currently, my flower business is thriving, allowing me to provide for my two children's education,” Ms. Thoa shared.

According to Nguyen Ngoc Thi, Deputy Director of the Chau Phu District Branch of the Vietnam Bank for Social Policies (VBSP), in the coming time, the unit will continue to focus policy credit capital on specific economic sectors and industries of the locality. It will promote the effective implementation of credit programs, striving to successfully complete the assigned plan targets. At the same time, it will coordinate with local authorities to increase the amount of capital delivered to people to meet the production and business needs of the locality. It will strengthen inspection and supervision to improve the quality of policy credit. Emphasis will be placed on promoting digital transformation in policy credit management to better serve the people. For example, the bank will cooperate with local authorities in encouraging people to repay principal and interest through the bank's smartphone applications, moving towards cashless transactions with the bank.

The effective deployment of preferential policy credit funds to the right beneficiaries and for the right purposes has been a positive impact, helping many poor and near-poor households develop their economy, create jobs, and achieve stable lives. As a result, the poverty rate in Chau Phu district has decreased year by year, and the living standards of the people have improved. Along with other policies of the Party and the State, the preferential credit policy of the Vietnam Bank for Social Policies (VBSP) plays a crucial role in the national target program on building new rural areas, promoting the socio-economic development of the locality.

THANH THANH

Source: https://baoangiang.com.vn/hieu-qua-tu-cac-chuong-trinh-tin-dung-chinh-sach-xa-hoi-a422226.html