Policy capital contributes to poverty reduction

(Quang Ngai Newspaper) - Thanks to loans from the Vietnam Bank for Social Policies (VBSP), thousands of poor and near-poor households in Son Tinh district have the conditions to invest in economic development and stabilize their lives.

Economic development support

Following the staff of the Transaction Office of the Bank for Social Policies in Son Tinh district, we visited the family of Mr. Le Cong Tu Duy, in Tho Loc Tay village, Tinh Ha commune (Son Tinh). Mr. Duy is busy taking care of his family's bamboo rats. In 2019, Mr. Duy chose to develop his economy by raising bamboo rats. After 3 months of effective raising, from the initial 10 bamboo rats, Mr. Duy invested in a barn to raise 100 more bamboo rats.

Mr. Duy said, thanks to a loan of 100 million VND from the Bank for Social Policies, he was able to invest in barns and develop a bamboo rat breeding model. Up to now, the bamboo rat herd has more than 500 bamboo rats. On average, each year, female bamboo rats give birth to 2 litters, each litter has 2-3 bamboo rats. After 2-3 months of raising, bamboo rats can be sold as breeding animals. For commercial bamboo rats, after 6-7 months, they can reach a weight of 1.2-1.5 kg. With a selling price of 430-470 thousand VND/kg of commercial bamboo rats, 1 million VND/pair of breeding bamboo rats, bamboo rat breeding is bringing a stable source of income for Mr. Duy's family.

With preferential loans, Mr. Le Cong Tu Duy (right) in Tho Loc Tay village, Tinh Ha commune (Son Tinh) has the conditions to expand his bamboo rat farm.

In 2024, Son Tinh district strives to achieve an average economic growth rate of 13.98%; total production value of more than 7,700 billion VND; create new jobs and increase employment for 1,700 workers; reduce the poverty rate (according to new standards) by 0.11%.

Similarly, the household of Ms. Nguyen Thi Tuyet Nhung, in Truong Xuan village, Tinh Ha commune, is a poor household in the locality. The family is in difficult circumstances, Ms. Nhung herself is sick, and her children are of school age. In 2012, Ms. Nhung received support from the Bank for Social Policies to borrow 50 million VND from the poor household program to raise pigs and cows. Thanks to her diligence, her family's pigs and cows grew and developed well. She and her husband have additional income to improve their lives and have expenses to take care of their children. Ms. Nhung shared, the preferential credit capital has helped my family have the conditions to raise livestock and develop the economy. Thanks to that, my family will escape poverty in 2022.

Mr. Phan Van Quy's family in Tra Binh village, Tinh Tra commune (Son Tinh) was previously a near-poor household, lacking capital to invest in economic development. With the advice of staff from the Transaction Office of the Bank for Social Policies in Son Tinh district, Mr. Quy borrowed 50 million VND from the loan program for newly escaped poverty households to invest in livestock farming. From this source of capital, Mr. Quy built a barn and bought 1 cow and 1 calf to raise. Thanks to the correct application of breeding techniques, his herd has now increased to 4 cows and 2 calves. Each year, Mr. Quy sells 3-4 calves, earning 10-12 million VND/cow. In addition, Mr. Quy also grows rice, corn, and sesame to increase his family's income.

Transaction Office of the Social Policy Bank of Son Tinh district transacts with people in Tinh Phong commune (Son Tinh).

To enable more households to access capital

Policy credit capital has helped many poor and near-poor households in Son Tinh district to develop production and business. In 2023, the district reduced the number of poor households by 66, reaching 235.7% of the annual plan; created jobs and new jobs for 1,600 people, reaching 100% of the annual plan.

To facilitate access to loans for poor households, near-poor households and other policy beneficiaries, the Transaction Office of the Bank for Social Policies in Son Tinh district has strengthened coordination with the commune authorities to regularly review and synthesize the loan needs of poor households, near-poor households and other policy beneficiaries; add subjects in need to the savings and loan groups; review subjects eligible for loans, thereby making a list of borrowers to carry out disbursement procedures.

Ms. Nguyen Thi Tuyet Nhung in Truong Xuan village, Tinh Ha commune borrowed capital from the Social Policy Bank to raise cows.

Currently, the Transaction Office of the Social Policy Bank of Son Tinh district organizes transactions at the headquarters of the People's Committees of communes; coordinates with local authorities and socio -political organizations to manage 155 savings and loan groups operating in 100% of villages in the district. The method of entrusting loans through socio-political organizations is an effective management model, helping union members and members access loans to develop family economy, create jobs, and increase income. As of June 10, 2024, the total outstanding debt of the Transaction Office of the Social Policy Bank of Son Tinh district is more than 413 billion VND, with 7,524 households still having outstanding debt. All borrowers make timely payments, the interest collection rate is relatively high, the overdue debt rate is low. Credit quality is guaranteed, the overdue debt rate accounts for only 0.12% of the total outstanding debt.

Director of the Transaction Office of the Bank for Social Policies of Son Tinh District, Nguyen Cong Chung, said that policy credit capital has become a fulcrum for poor households and policy beneficiaries in difficult circumstances to boldly borrow capital to invest in production and business models, contributing to the effective implementation of poverty reduction work in the area.

In the coming time, the unit will continue to coordinate with local authorities, associations, unions, savings and loan groups to review households in need of loans so that borrowers can access capital as soon as possible. At the same time, continue to improve credit quality, quality of commune transaction point operations, creating favorable conditions for people to access policy credit capital. Strengthen and improve the quality of credit activities, ensure loans are given to the right subjects, borrowers use capital effectively, for the right purpose, and strive to escape poverty sustainably.

Article and photos: TRUNG AN

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Source: https://baoquangngai.vn/trang-dia-phuong/huyen-son-tinh/202406/nguon-von-chinh-sachgop-phan-giam-ngheo-2fc0d9e/