Effectively carrying out policy credit programs, the Thai Nguyen Branch of Vietnam Bank for Social Policies (VBSP Thai Nguyen) has made important contributions to local poverty alleviation and social security, thus promoting its role as an “extended arm” of the Government and VBSP in implementing policy-based credits.
Creating sustainable poverty reduction momentum
VBSP Thai Nguyen was set up in 2002. Like other units across the country in the VBSP system, the branch has made remarkable and comprehensive development steps. At present, the branch has 171 transaction points in 178 communes in the province. VBSP Thai Nguyen lent VND3,747,963 million, an increase of VND3,568,570 million over December 31, 2002, representing an average annual growth of VND187,398 million.
From three policy credit programs launched at the beginning of 2003, VBSP Thai Nguyen is currently carrying out 17 programs. Total outstanding loans to these programs climbed from less than VND200,000 million in the first year to VND3,746,886 million by the end of 2021.
The branch's fund has brought about practical effects, helping 302,412 poor and near-poor households out of poverty, providing 29,781 workers with stable jobs, building 105,971 clean water and environmental sanitation works in rural areas, and building 184 social houses.
Especially, through its policy credit programs, poor households, ethnic minorities and other policy beneficiaries have access to funds for production and business, which is a lever to stimulate economic development. The poverty rate of Thai Nguyen province in the 2016-2020 period decreased from 13.4% to 2.82%. In 2021, it fell to 2.16%, a decrease of 0.66% over 2020. The rate of near-poor households sank from 4.28% to 2.19% in 2020.
This is a great motivation for the province to achieve such goals as agricultural and rural development, educational development, vocational training, employment and social security, sustainable poverty reduction and new rural construction.
Supporting production and business restoration
To help solve difficulties and restore production of enterprises and people in the wake of the COVID-19 pandemic, VBSP Thai Nguyen has promptly supported preferential loans and credit for them to gradually live through difficulties and continue their development investment.
Accordingly, implementing the loan program for wage payment for laid-off workers and business restoration as per Resolution 68/NQ-CP, the branch lent VND3,669 million to 11 businesses with 945 employees as of December 31, 2021. Of the sum, it lent VND1,125 million to pay wages to 287 laid-off workers and VND2,544 million to pay wages to 658 workers to restore production.
In addition, to support business recovery, VBSP Thai Nguyen accelerated lending rate cuts for customers according to the Prime Minister’s Decision 1990/QD-TTg dated November 26, 2021. As of December 31, 2021, the rate reduction for customers reached a total value of VND7,487.8 million. Besides, it has diversified credit programs, quickly and transparently settled loan procedures and timely responded to the borrowing needs of organizations and individuals.
Notably, in order to lend the right people in a timely manner to enhance efficiency, VBSP Thai Nguyen promoted loans via cooperation with sociopolitical organizations (like farmers’ association, women's union, veterans’ association and youth union). As of December 31, 2021, sociopolitical organizations cooperated with VBSP to manage 2,815 savings and loan groups, with outstanding loans of VND3,727,992 million, accounting for 99.50% of VBSP’s total outstanding loans, an increase of VND141,780 million over December 31, 2020.
In 2022, VBSP Thai Nguyen will base on the plan of VBSP to carry out Resolution 11/NQ-CP dated January 30, 2022 of the Government on socioeconomic recovery and development program in Thai Nguyen province to increase loans by 8% or more over 2021; rein in overdue debts below 0.1%; collect over 98% of interests; handle 100% of due debts; and keep 100% of savings and loan groups functioning well.
In the coming time, VBSP Thai Nguyen will strive to improve operational efficiency, help people with more opportunities to access the Government's financial resources to boost production, reduce poverty and contribute to local socioeconomic development.
By Vietnam Business Forum