Social policy credit capital contributes to poverty reduction goals

According to the Phu Yen Provincial Branch of the Bank for Social Policies (BSP), the loan turnover for poverty reduction programs and loan turnover for programs contributing to the province's poverty reduction goals in the first 8 months of 2023 was 218 billion VND/6,462 households, outstanding debt as of August 31, 2023 was 1,979 billion VND/48,464 households, accounting for 48% of the total outstanding debt of the Branch.

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The loan capital in the first 8 months of the year has helped more than 3,400 households borrow capital to invest in production and business, increase income, develop the economy, stabilize life, create jobs for nearly 6,500 workers, more than 3,000 households have money to cover the study costs for students in difficult circumstances. Of which, loans to poor households in the first 8 months of 2023 were 32 billion VND/658 households, outstanding loans of 182 billion VND/4,088 households; loans to near-poor households were 93 billion VND/1,849 households, outstanding loans of 604 billion VND/14,178 households; loans to households that have just escaped poverty were 19 billion VND/376 households, outstanding loans of 824 billion VND/21,697 households; Loans for students in difficult circumstances: 48 billion VND/3,045 households, outstanding loans: 316 billion VND/7,542 households/8,289 students; Loans for socio-economic development in ethnic minority and mountainous areas according to Decree No. 28/2022/ND-CP (one of 5 social policy credit programs implementing Resolution No. 11/NQ-CP) 26 billion VND/534 households, outstanding loans: up to 53 billion VND/959 households.

Policy credit capital has been provided to 605 villages (hamlets, neighborhoods) of 110 communes, wards and towns; in which, priority is given to lending to communes in mountainous ethnic minority areas, disadvantaged areas and rural areas. In the first 8 months of the year, the loan capital has helped more than 3,400 households borrow capital to invest in production and business, increase income, develop the economy, stabilize life, create jobs for nearly 6,500 workers, and more than 3,000 households have money to cover tuition fees for students in difficult circumstances.

Following Ms. Tran Thi Be - Head of the Savings and Loan Group in Quarter 4, Hoa Vinh Ward, Dong Hoa Town, we visited the household of Ms. Nguyen Thi Cua in the same Quarter 4 as Ms. Be. Ms. Cua was previously a poor household, thanks to borrowing policy credit to do business, by 2020 her family had escaped poverty. In 2021, she continued to borrow policy credit under the near-poor household program to buy cows for raising. Then by the end of 2022, Ms. Cua's family was no longer a near-poor household but continued to borrow 30 million VND for newly escaped poverty households. With the loan, Ms. Cua's family bought 2 cows to take care of. Since borrowing capital to raise cows, she has sold 2 cows for 52 million VND to pay off the bank loan, so far the family still has "savings" of 4 cows in the barn. Having that accumulated capital, the couple knows how to calculate and save from the income from the rice fields, the husband drives a tractor and earns about 6 million VND/month to cover the family's regular living expenses. The capital from raising cows is for accumulation. This is the foundation for "sustainable poverty escape".

From borrowing money to buy 2 cows for breeding, up to now, Ms. Phan Thi Tu's cowshed has increased to 4 cows, which is a very effective source of capital to escape poverty sustainably.

Like Ms. Cua's family, Ms. Phan Thi Tu in Thach Tuan 2 village, Hoa Thinh Dong commune, Dong Hoa town was also a poor household in the past. Thanks to a loan of 50 million VND to raise cows, her family has escaped poverty and now her cowshed has 4 cows. "Raising cows in Dong Hoa town in the agricultural communes is quite favorable, because here people all have rice fields, plenty of natural grasslands which are a rich source of food for cows. Therefore, raising cows is not very expensive. People borrow capital to raise cows, take care of them for a few years, sell them, and pay the bank, and have a few cows left over as capital for savings." Mr. Nguyen Hiep Quoc Vu - Deputy Director of the Phu Yen Provincial Bank for Social Policies Branch shared.

Mr. Ho Van Thuc - Director of the Phu Yen Provincial Branch of the Vietnam Bank for Social Policies said that in the period of 2021-2023, the Vietnam Bank for Social Policies has closely followed the instructions of the superiors, proactively advised the Provincial Party Committee, the Provincial People's Committee, the Board of Directors of the Vietnam Bank for Social Policies at the provincial and district levels and local authorities to continue to fully and effectively implement policy credit programs to 110 communes, wards and towns across the province. In particular, focusing on prioritizing loan capital in mountainous districts, rural areas with high poverty rates, ethnic minority areas, extremely difficult areas, coastal areas, etc., creating favorable conditions for poor households and other policy beneficiaries to have capital for production and business, improve their lives, and escape poverty.

Every year, the Branch proactively coordinates with the Department of Labor, Invalids and Social Affairs, Department of Education and Training, Department of Construction, Department of Agriculture and Rural Development, Provincial Ethnic Minorities Committee and People's Committees of districts, towns and cities to develop capital plans that meet actual needs, deploy loans to promptly meet the capital needs of beneficiaries, conduct inspections and supervisions, and coordinate to remove difficulties and obstacles during the implementation process.

Through the method of entrusting 4 socio-political organizations, along with the governance model of the Board of Directors at the provincial and district levels, the Chairman of the People's Committee at the commune level is a member of the Board of Directors at the district level; the system of Transaction Points at the People's Committees of communes (wards, towns) and the network of Savings and Loan Groups (S&LV Groups) established in villages (hamlets, neighborhoods) have helped the poor and policy beneficiaries access preferential credit capital from the State quickly, conveniently, reducing time and costs.

Help over 10 thousand households overcome poverty threshold:

According to Mr. Ho Van Thuc - Director of the People's Credit Fund of Phu Yen province, the policy credit capital has played an important role as an economic lever, stimulating the poor and policy beneficiaries to have conditions to develop production, improve their lives, narrow the gap between rich and poor, helping localities have more important resources to promote local socio-economic development, stabilize political security, prevent and limit usury and black credit, contributing significantly to the implementation of the goal of sustainable poverty reduction in the province.

In the period of 2021-2022, policy credit capital has contributed to helping over 10,000 households overcome the poverty line. More than 12,000 students from poor households and households in difficult circumstances received loans to buy computers, online learning equipment and cover study expenses; nearly 50,000 new clean water and rural environmental sanitation works were built; more than 12,000 households in difficult areas received loans for production and business; 187 poor households and low-income officials, civil servants, public employees and workers borrowed loans to build houses; 22 enterprises borrowed loans to pay 9,578 workers' salary suspension.

Mr. Ho Van Thuc - Director of the Social Policy Bank Branch in Phu Yen province.

At the same time, policy credit capital plays a very important role in contributing to the completion of the province's new rural construction plan, significantly in the implementation of 6/19 criteria for new rural construction. The effectiveness of policy credit capital contributes to improving the lives of people in communes building new rural areas, such as: reducing the rate of poor households, creating jobs, increasing income, studying expenses for students in difficult circumstances, building clean water works, environmental sanitation and housing for poor households and low-income households. By the end of 2022, the whole province has 63 communes meeting new rural standards, of which 15 communes meet advanced new rural standards; 3 district-level units: Tuy Hoa city, Tay Hoa district, Phu Hoa district have achieved 100% of new rural communes.

According to the Department of Labor, Invalids and Social Affairs of Phu Yen province, after reviewing the multidimensional poverty rate (including the rate of poor and near-poor households) is 12.12%. The total number of poor and near-poor households is 31,882. Of which, the poverty rate is 4.1%, the total number of poor households is 10,781, down 0.87% compared to the beginning of the year, reaching 100% of the Plan. The rate of poor ethnic minority households (the number of poor ethnic minority households compared to the total number of ethnic minority households) decreases by over 6%/year. It is estimated that by the end of 2023, the poverty rate will decrease by 0.85% compared to the beginning of 2023 and the poor ethnic minority households will decrease by 5.2%.

According to the People's Committee of Phu Yen province, one of the important solutions to achieve the poverty reduction target by 2025 is: Continuing to implement solutions to support the poor and near-poor to stabilize their livelihoods, develop production, create jobs to increase income, and escape poverty sustainably. Providing and meeting the demand for loans with preferential interest rates for poor households, continuing to effectively implement mechanisms and policies to support production development, diversifying forms of livelihood creation for the poor, creating conditions for the poor to access policies, resources, markets... Enhancing the role of cooperatives, cooperative groups, savings and loan groups in linking production, processing, and product consumption between poor and near-poor households and enterprises.

At the same time, the People's Committee of Phu Yen province also proposed that the Vietnam Bank for Social Policies consider submitting to the Prime Minister and ministries: Continue to create conditions for additional capital sources for loans to support job creation, promptly meeting the borrowing needs of workers. Increase the lending level for some programs in line with the conditions of socio-economic development in the new period, such as: increase the lending level for production and business households in difficult areas to a maximum of 100 million VND and no loan guarantee is required; lending for clean water and rural environmental sanitation programs to a maximum of 20 million VND/project; the lending level for new construction or renovation of houses for housing must not exceed 1 billion VND; increase the lending level for workers going to work abroad for a fixed term under contracts to a maximum of 100% of the contract cost, no loan guarantee is required. Add households with average living standards to borrow policy credit capital to have capital for production and business, and economic development.

NGOC MINH

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