Policy credit motivates development in Hai Duong province

VBSP director Duong Quyet Thang praises individuals with eminent achievements in handling Directive 40

Optimising policy credit for economic development

To Thi Chuyen, born in 1967 and living in Phu Tai 2 hamlet of Kim Dinh commune in Hai Duong, shared that she became a customer of Vietnam Bank for Social Development (VBSP) in 2010 when she only dared to borrow a modest sum of VND8.6 million ($370) to support her second child’s enrollment to Hanoi College of Industrial Economics.

Chuyen’s family has faced piling hardships as they have been living off just 1.1 hectares of fields while bringing up three kids.

Therefore, in 2014, in light of the provincial People’s Committee's plan to combine local policy credit with crop structure transformation programmes, Chuyen was encouraged by the Peasants’ Association’s local branch and the head of the local savings group to borrow VND19 million ($830) from a preferential credit package to shift part of her family fields into planting fruit trees (litchi and longan).

With active support from the Peasants’ Association’s local branch which sent agricultural extension staff to directly support her family with planting techniques, her orchards have been posting ever-increasing output.

Chuyen was able to pay back the entire loan in mid-2017. In May 2018, she was allowed to borrow VND50 million ($2,170) from another concessionary credit package tailored to support near-poverty households to expand her production model.

This year, taking advantage of the state orientation to double the lending limit to near-poverty households to VND100 million ($4,350), Chuyen’s family applied for another loan of VND50 million ($2,170) to invest in raising fish.

Her third child has also enrolled at the Hanoi College of Industrial Economics, taking up a loan from the preferential credit programme that supports needy pupils and students with the first-time capital disbursement of VND7.5 million ($330).

“Directive 40 [Directive 40-CT/TW dated November 22, 2014] has changed the mindset of local management authorities towards the implementation of social policy credit programmes, as well as the role of policy credit carried out by the VBSP in poverty reduction and job creation to ensure social well-being in the province,” said Nguyen Duong Thai, Deputy Secretary of the provincial Party Committee cum Chairman of the Hai Duong provincial People’s Committee, when reviewing the five-year implementation of Directive 40 across the province.

The Secretariat of the Party Central Committee has enacted Directive 40-CT/TW dated November 22, 2014 on strengthening the Party’s leadership related to social policy credit.

Policy credit – a central task in the time ahead

With growing attention and strict guidance from local management authorities, the quality of policy credit has been improving constantly, effectively meeting the production-consumption requirements, bettering the living standards of needy households and other policy beneficiaries in the province.

Policy credit has also contributed to pushing back "shadow banking" activities in diverse provincial areas.

As of June 30, 2019, the total outstanding policy credit balance surpassed VND3.338 trillion ($145.13 million), showing a jump of VND993 billion ($43.17 million) compared to the end of 2018, with 91,223 needy and near-poverty households and other policy beneficiaries accessing the loans.

Policy credit have reached all communes, wards, and towns in the province, helping to satisfy the abundant demand for funding in a fast and convenient manner.

Looking back on the past five years, 196,087 needy and near-poverty households, as well as other policy beneficiaries, have been taking up loans from VBSP with lending volume touching VND5.523 trillion ($240.13 million).

This sum has helped 38,755 households escape poverty, created jobs for 6,518 labourers, and enabled 608 needy households and policy beneficiaries to take up loans for working abroad under term-contracts.

The sum also helped 19,374 pupils and students take out loans to fund their studies and contributed to building 211,001 safe water and hygiene facilities in rural areas, and to building 310 gratitude houses for needy households and other policy beneficiaries.

“Directive 40 was the right decision that fits people’s soul, mirroring the Party and the state's drive to improve the living standards of needy people and other policy beneficiaries, then bolstering people’s trust in the Party and the state's policy, and fostering internal cohesion in the whole party and the people," said Nguyen Manh Hien, Secretary of Hai Duong Party Committee. “With strenuous efforts and a strong commitment by the whole political system, people’s living standards have been improving constantly, social order and security have been maintained, and political stability was safeguarded, paving the way for socio-economic development."

VBSP’s director Duong Quyet Thang said, “Being firmly committed to social development and improving the life of needy people and other policy beneficiaries, we will try our best to ensure the effective implementation of preferential credit policies across the province, creating harmony in the distribution of resources, from there playing a role in pushing up socio-economic development, reducing poverty in a sustainable manner, and achieving social well-being in the province.”