Workshop on social policy credit solutions in the new context

Deputy Head of the Central Economic Commission Nguyen Hong Son affirmed that the goal of achieving social progress and equity is the Party's consistent policy; Socialism is a creative solution, deeply humane and suitable to Vietnam's reality.

Directive No. 40-CT/TW responds to people's aspirations, strengthens trust in the Party and State, sustainably reduces poverty, creates jobs, develops human resources, narrows the development gap, ensures social security and political and economic stability.

Deputy Head of the Central Economic Commission Nguyen Hong Son speaks at the Workshop

Co-chairing the Scientific Workshop were Deputy Head of the Central Economic Commission Nguyen Hong Son; Deputy Director of the Ho Chi Minh City National Academy of Politics Le Van Loi; Permanent Deputy Governor of the State Bank of Vietnam Dao Minh Tu and General Director of the Vietnam Bank for Social Policies Duong Quyet Thang. Also attending were more than 200 delegates representing a number of central ministries, departments, branches, local leaders, experts, scientists, economic managers, universities and businesses.

Reporting on the implementation results of Directive No. 40-CT/TW, General Director of the Vietnam Bank for Social Policies Duong Quyet Thang said: after the Secretariat issued Directive No. 40-CT/TW and Conclusion No. 06-KL/TW, the Vietnam Bank for Social Policies developed a plan and organized its implementation.

In particular, the VBSP has coordinated with relevant ministries, branches and agencies to advise the National Assembly and the Government to remove difficulties in resources, adjust the social credit mechanism in accordance with reality; advise local authorities to effectively implement social credit, contributing to the implementation of national target programs on sustainable poverty reduction, new rural construction and socio-economic development in ethnic minority and mountainous areas.

The Presidium of the Conference

After 10 years of implementation, by April 30, 2024, the total capital source for social credit reached over VND 373,000 billion, an increase of VND 235,745 billion, 2.72 times higher than when Directive No. 40-CT/TW was implemented; the average annual growth rate reached 10.6%. The capital source entrusted from localities at all levels reached VND 45,766 billion, accounting for 12.3% of the total capital source, an increase of VND 41,874 billion compared to before Directive No. 40-CT/TW. 100% of provincial and district-level units have balanced and entrusted local budget capital to the Vietnam Bank for Social Policies to supplement loan capital.

This is the basis for the Social Policy Bank to ensure 100% completion of targets and plans assigned by the Prime Minister in the past 10 years, helping over 20.6 million poor households and other poor households to borrow capital with a loan turnover of 706,668 billion VND.

As of April 30, 2024, the total outstanding debt of social credit programs reached over VND 346,000 billion, an increase of nearly VND 218,000 billion compared to the end of 2014, with more than 6.8 million poor households and social credit organizations, the average annual growth rate reached 10.5%. The ratio of overdue debt and deferred debt decreased from 0.93% of total outstanding debt to 0.56% of total outstanding debt, of which overdue debt accounted for 0.2% of total outstanding debt.

General Director of the Vietnam Bank for Social Policies Duong Quyet Thang reports on the results of implementing the social policy.

After Directive 40-CT/TW was issued, the National Assembly promoted institutionalization, assigned the Government to implement many TDCS programs, such as Resolution No. 111/2024/QH14, dated February 5, 2024; supplemented capital sources for socio-economic development in ethnic minority and mountainous areas; allowed localities to balance the budget, entrust capital sources through the Vietnam Bank for Social Policies to support production, business, stabilize the economy, develop traditional craft villages, and rural tourism.

As of March 31, 2024, outstanding loans to ethnic minorities and mountainous areas reached VND 120,115 billion, accounting for 35.3% of total outstanding loans at the Vietnam Bank for Social Policies, with over 2.2 million customers still in debt. Of which, outstanding loans to ethnic minority households were VND 83,186 billion, with over 1.5 million customers still in debt, accounting for 24.45% of total outstanding loans at the Vietnam Bank for Social Policies, averaging VND 54 million/ethnic minority household, of which the overall average was VND 49.7 million.

Many solutions to effectively support the Social Policy Bank in its social credit program

Director of the State Bank of Vietnam's Department of Credit for Economic Sectors Ha Thu Giang said: Implementing the Party's Resolutions, especially Directive No. 40-CT/TW and Conclusion No. 06-KL/TW, the State Bank of Vietnam has implemented many solutions to support the Vietnam Bank for Social Policies to effectively implement the social credit programs; build a legal framework for social credit activities and direct credit institutions to accompany the Vietnam Bank for Social Policies, through maintaining 2% of deposit balance and purchasing Vietnam Bank for Social Policies bonds guaranteed by the Government.

Delegates are managers, experts, scientists, and businesses attending the Workshop.

At the workshop, speakers pointed out some limitations in TDCS such as: some Party committees have not paid due attention, credit policies have low loan levels, slow adjustment, TDCS quality is uneven, resources have not met the needs, and coordination of socio-economic project programs with TDCSXH is not effective.

Deputy Director of Ho Chi Minh City National Academy of Politics Le Van Loi delivered the closing speech of the Workshop

It is necessary to continue to disseminate and implement Directive No. 40-CT/TW and Conclusion No. 06-KL/TW; strengthen the leadership role of the Party and the Government in the socio-economic development. Perfect the mechanism and policies on mobilizing, managing and using finance, objects, locations, loan levels and interest rates.

Prioritize the State and local budgets, attract other legal capital sources for social credit.

Strengthen coordination between levels and sectors and promote the role of the Central Committee of the Vietnam Fatherland Front and socio-political organizations in social supervision and criticism.

The VBSP needs to advise ministries and branches on implementing the Development Strategy to 2030, improving governance and management capacity; building a digital banking platform, diversifying products and services suitable for the poor.

Strengthening staff training, perfecting and developing human resources, affirming the position as the largest microfinance provider in Vietnam and Asia.

Concluding the workshop, Deputy Director of the Ho Chi Minh City National Academy of Politics Le Van Loi said that the presentations and comments at the workshop provided a scientific and practical basis for recommending the Politburo to issue a Resolution on strengthening the Party's leadership over socialism. The comments provided specific scientific basis and lessons learned to develop the Project "Summary of 10 years of implementing Directive No. 40-CT/TW dated November 22, 2024 of the Secretariat on strengthening the Party's leadership over socialism".

Source: https://thanhnien.vn/hoi-thao-giai-phap-tin-dung-chinh-sach-xa-hoi-trong-boi-canh-moi-185240703125040521.htm