Vu Ban - A bright spot in policy credit growth

Disbursement of VND 83.4 billion to serve 1,247 customers, outstanding loan growth rate reaching 12.2%, these are impressive figures on the policy credit performance of the Social Policy Bank (CSXH) of Vu Ban district in the first 5 months of 2025.

Gilding worship statues at Nguyen Gia Bang's family workshop, Ho Son village, Lien Minh commune.

Arriving at Lien Minh commune, we were taken by Ms. Vu Thi Nhung, President of the Women's Union, to the workshop of Mr. Nguyen Gia Bang in Ho Son village. Mr. Bang was quickly painting and gilding wooden products while sharing with us: "My family's handicraft painting workshop specializing in manufacturing and restoring wooden worship items is often "hungry" for capital because many partners still owe money. With the help of the Women's Union, in early 2023, I was able to borrow 50 million VND from the job creation loan program to invest in paint, gilding and wood materials, maintaining and creating jobs for 5 main workers. Up to now, the workshop still regularly produces an average of 10-15 sets of products per month: votive doors, statues, palanquins, altars, horizontal lacquered boards, parallel sentences... Hopefully, the Party and the State will always pay attention to policy credit capital, creating conditions for people to borrow with the most preferential interest rates and longer loan terms so that we can confidently invest in business". Like Mr. Bang, in early 2023, Ms. Dinh Thi Hoi's family in Nhat Giap village borrowed 100 million VND from the job creation loan program of the district's Social Policy Bank and decided to invest in a 500m2 warehouse for rent with 2 cold storages for food along with auxiliary machinery such as forklifts, tractors, cranes, generators... creating new jobs for 3 workers with stable income. Up to now, there has been 1 generator business and 2 frozen food businesses renting the factory from Ms. Hoi's family.

Evaluating the effectiveness of the loan capital for job creation from the district's Social Policy Bank, Ms. Nhung, Chairwoman of the Women's Union of Lien Minh commune, said: "The loan capital for job creation has contributed to creating stable jobs, limiting the situation of usury, pushing back "black credit" in rural areas, improving and enhancing the quality of life of people in the commune. Social policy credit is implemented in conjunction with agricultural extension programs, science and technology transfer, chain development... has really promoted efficiency, creating jobs and stable income. In addition, the policy credit capital disbursed through the Social Policy Bank has helped poor and near-poor households in the locality change their habits and awareness in production and business, boldly invest capital for economic development, create stable income for their families, and gradually rise up to escape poverty sustainably". As of May 18, 2025, the outstanding loan balance of 6 credit programs entrusted through the Commune Women's Union reached more than 17,728 billion VND with 317 borrowing households; the outstanding loan balance for job creation was 8 billion VND with 114 borrowing households. Social policy credit capital was disbursed accurately, promptly, and to the right subjects through 7 lending groups with a savings balance of more than 418 million VND.

As of May 18, 2025, the total capital of 9 policy credit programs at the Vu Ban District Social Policy Bank reached 345.2 billion VND, an increase of 43.7 billion VND compared to the beginning of the year. Loan turnover in the first 5 months of 2025 reached more than 83.4 billion VND for 1,247 borrowers, focusing mainly on student loan programs, clean water and rural environmental sanitation loans, loans for newly escaped poverty households, job creation, and people who have completed their prison sentences. Outstanding credit balance of the District Social Policy Bank reached 338.3 billion VND with 7,825 borrowers, an increase of more than 36.8 billion VND compared to the beginning of the year, with a growth rate of 12.2%.

The above results were achieved thanks to the fact that right from the beginning of the year, the District Social Policy Bank proactively grasped the capital borrowing needs in communes and towns, actively advised the Provincial Social Policy Bank and the District People's Committee to supplement capital sources to serve policy beneficiaries. The Bank proactively reported to the Head of the Board of Directors and notified the associations and unions of communes and towns to register capital borrowing needs, and advised on capital allocation to communes and towns. Associations and unions of communes and towns and savings and loan groups (TK and VV) took the opportunity to prepare documents for disbursement when there was additional capital. In addition, the District Social Policy Bank advised the Board of Directors to resolutely direct associations and unions of communes and towns to improve credit quality while increasing outstanding loans. The Chairmen of the People's Committees of communes and towns directed the village and hamlet heads to coordinate with the TK and VV groups to effectively manage policy credit capital sources right from the village and hamlet level. Village and hamlet chiefs, standing committees of associations and mass organizations at the commune level have directly participated in activities and evaluated loans right from the grassroots level, participated in management, confirmed loan recipients, and coordinated with banks at all levels to participate in handling overdue debts and risky debts. District-level associations and mass organizations have issued many directive documents, assigned emulation targets, and closely worked with grassroots associations and mass organizations.

In addition, closely following the policy of merging administrative units and the orientation of the Vietnam Bank for Social Policies, the Transaction Office has proactively advised local Party committees and authorities, coordinated with mass organizations to implement the merger to ensure stable and smooth policy credit activities, without interrupting people's access to policy loans during the merger. Directed the review of all debts due in the months after the merger to have a plan and measures to handle them early, without leaving capital behind after the merger; reviewed the network of commune transaction points; considered the scale of new commune credit after the merger (number of groups, number of customers, outstanding debt) to prepare a plan for arranging staff, a suitable commune transaction plan, ensuring quality and efficiency. Advised the Representative Board, coordinated with associations and mass organizations to speed up the completion of the annual inspection plan. By May 15, 2025, the unit had completed the review and was making edits and supplements to complete the dossier before the merger.

In the coming time, the Social Policy Bank of Vu Ban district will strengthen the inspection and supervision of the Board of Directors, associations and organizations entrusted with capital management; direct commune-level associations and organizations to perform well the inspection work after lending according to regulations, especially for households borrowing over 50 million VND, participating in supervision at the commune transaction session according to the signed entrustment contract. Develop a plan for regular inspection of units with low operational quality, overdue debt, and high outstanding interest. Closely follow the credit plan targets assigned in the year to ensure and be proactive in increasing capital sources and outstanding credit, strive to complete and exceed the outstanding loan growth plan by the end of the year. Focus on lending to the right subjects of policy credit programs, promote propaganda to develop social housing program loans. Organize timely disbursement of newly allocated capital, meeting the capital needs of beneficiaries. At the same time, actively mobilize capital to supplement the capital source for lending to poor households and other policy subjects. The district Social Policy Bank, together with the commune-level associations and unions, closely follow the announced plan targets and due debts to have a disbursement plan immediately after capital recovery. Actively advise the commune Poverty Reduction Committee to allocate and regulate capital sources for villages and hamlets with policy households in need but not yet able to borrow capital, contributing to the eradication of "black credit" in rural areas. Resolutely direct the thorough implementation of the principle of public management and democratization of policy credit channels at the grassroots level, from loan evaluation, disbursement, capital use to the management stage so that everyone can supervise each other.

Article and photos: Duc Toan

Source: https://baonamdinh.vn/kinh-te/202506/vu-ban-diem-sang-vetang-truong-von-tin-dung-chinh-sach-80234ad/