Effectively Promoting Policy Credit Capital

3:14:26 PM | 22/9/2022

After 20 years of development, the Ca Mau Branch of Vietnam Bank for Social Policies (VBSP Ca Mau) has promptly and effectively applied many preferential lending policies to bring policy credit capital to beneficiaries and assisted local sustainable poverty reduction and realization of national target programs in the province.

Mr. Nguyen Quoc Bao, Director of VBSP Ca Mau

Assisting sustainable poverty reduction goals

Starting in 2003 when it managed capital for just three credit programs (poverty, student and employment), after nearly 20 years of development, VBSP Ca Mau has carried out over 21 policy credit programs. All programs are implemented in a timely, strict and correct manner. The funds are disbursed directly to beneficiaries to help poverty reduction and social security in the locality.

As of June 30, 2022, the branch’s total outstanding loans reached VND3,436,387 million, an increase of VND3,341,352 million since its establishment; serving 156,141 borrowing customers. On average, a commune and a credit region are lent VND34,024 million and VND1,338 million, respectively. A customer is lent VND27 million. The branch’s policy credit covers all 883 hamlets in the province.

In addition, the source of concessional loans has continuously expanded to better meet the needs of poor households and other policy beneficiaries. As of June 30, 2022, its loans are valued at VND3,442,037 million, an increase of VND3,327,037 million, an increase of 29 times over the time of its incorporation) compared to when it was newly established.

Ca Mau seriously and methodically carries out policy credit. Based on annual poverty and beneficiary review results, VBSP Ca Mau advises on building capital needs to report to the Central Government for fund allocation for local credit needs. In 2021, the branch lent VND760 billion to 28,600 poor households and policy beneficiaries and collected more than VND470 billion of debt.

VBSP Ca Mau has provided simple conditions for the poor to access preferential capital. Specifically, when borrowing, they do not need to mortgage their assets, and can fulfill simple and convenient lending procedures. Furthermore, commune-based and home-based lending and debt repayment methods have facilitated beneficiaries to access services and information while reducing cost and time and building up public trust.

As a result, poor households and policy beneficiaries have access to preferential loans for economic development and disadvantaged students can continue their studies. This is a great motivation for Ca Mau to fulfill its goals: agriculture, farmer and rural development; educational development; vocational training; employment; social security assurance; sustainable poverty reduction; and new rural development.

The VBSP delegation surveys loan usage at a household in Phu My commune, Phu Tan district

Fostering economic recovery and development

In addition to many lending policies for poor households and policy beneficiaries, VBSP Ca Mau advises and promptly implements loan support to enable people and enterprises to restore and develop their business after the COVID-19 pandemic.

Specifically, following Resolution 11 of the Government, VBSP Ca Mau coordinated with the Department of Labor, Invalids and Social Affairs to advise the Provincial People's Committee to launch Plan 97/KH-UBND dated July 12, 2021 on support for people in difficulty caused by the COVID-19 pandemic. Moreover, the branch advised on Document 3822/UBND-KT dated July 16, 2021 on the implementation of wage payment lending policy to support laid-off workers. Currently, all nine transaction offices in districts and cities introduced documents regarding this policy.

Furthermore, the branch and its transaction offices have actively joined hands with related agencies to actively inform and issue lending policies to employers and employees. At the same time, they have diversified credit programs such as interest rate support and quick and transparent lending procedures to ease access to loans to better support employers and employees to overcome their difficulties to quickly recover and stabilize production.

Implementing Resolution 68/NQ-CP of the Government on support policy for employers and employees troubled with difficulties caused by the COVID-19 pandemic, VBSP Ca Mau lent VND2,657.46 million to 14 enterprises with 747 employees. The loan was used to pay wages and salaries to their employees.

Mr. Nguyen Quoc Bao, Director of VBSP Ca Mau, said, following the VBSP development strategy in 2021-2030 approved by the Prime Minister, as well as VBSP development approach, VBSP Ca Mau is determined to complete its assigned tasks well.

The branch targets to provide its products and service to all eligible poor households, near-poor households and other policy beneficiaries in need; improve work performance at grassroots transaction locations; and facilitate people to easily access its products and services.

Not only excelling in its professional operations, VBSP Ca Mau Branch has also regularly carried out social security and supported the poor in recent years. The branch has supported 10 poor students and two children orphaned by the COVID-19 pandemic. It also donated VND235 million to the poor, VND385 million to the local COVID-19 Prevention Fund and VND179 million to 47 policy- beneficiaries.

Additionally, VBSP Ca Mau will effectively coordinate and integrate policy credit with technical assistance, technology transfer, agricultural and fishery extension in order to enhance the effect of capital use and complete poverty reduction, job creation, social security and new rural development goals in the province.

VBSP Ca Mau system will be built to become a modern bank that performs both the State's preferential credit function and develops many financial services for the poor, low-income people and other policy beneficiaries.

Ngoc Tung (Vietnam Business Forum)