Article 2: The "boost" from loan support policies
To succeed in entrepreneurship, youthful enthusiasm alone is not enough. What young people need is support from relevant authorities and assistance from loan sources. In Nghe An province, dozens of youth-led startup models have received loan support totaling billions of dong.
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THE AMBITIONS OF THE "YOUNG BOSS"
In Con Ca hamlet, Nghia Loc commune, Nghia Dan district, many people know "the boss" Nguyen Thanh Binh (born in 1992). Despite his young age, five years ago, Binh was already the owner of a textile and garment export business supplying many major markets around the world, such as the US, Italy, Hong Kong, and China. One afternoon in late May, after touring his production line, Binh shared his story of starting his business in the export of fashion and sports socks.
“My entrepreneurial journey began by chance. After a long internship at a company, I realized I wasn't suited to the office environment. I wanted more experiences outside of work. So, I was always eager to find something to start a business. Then, during Tet (Vietnamese New Year), a friend and I decided to start a business selling lucky money envelopes and other Tet gifts… After that, we made a small profit, but this product is seasonal and difficult to sustain, so I continued to think and search for ideas. Luckily, one fine day, a friend gave me some socks. Holding the socks in my hand, I shared my thoughts. The next day, my friend and I started researching and began our sock business,” Binh shared.
“We decided to do it, so we went to a coffee shop and started creating a fan page, posting our products. Luckily, as soon as we posted a picture of a product, someone placed an order. Because we wanted a better price, we encouraged them to order more. After confirming the order, we quickly went to buy the goods and delivered them to the customer. In total, we broke even on that order because we forgot about the gas money,” Binh happily recounted.
From that first order, Binh began exploring expanding his product range and developing his customer base. His strategy was wholesale, minimizing costs. Initially, Binh used his tuition fees that hadn't yet been paid to the school and borrowed 10 million VND from the Social Policy Bank's student loan program. He continued to expand his business by leveraging social media and e-commerce platforms...
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Entering the business world, Bình realized that the fashion industry offered a wide variety of products and designs, so he began focusing on his own designs. At that time, finding a company that could design socks was difficult, and if available, the costs were high. Therefore, in 2019, he happened to find a place selling used machinery and decided to buy a set of used machines to start his business. That same year, he established Begen Co., Ltd., where he serves as director. In 2020, the company added several new sock weaving and shaping machines, increasing its production capacity to 4,000 pairs per day, with a total investment of 5 billion VND. This improved product quality and reduced production costs. Along with production, Bình and his team began focusing on building a brand for their products. Currently, they sell 100,000 pairs per month, creating jobs for over 20-30 local workers.
Binh confided, if it weren't for...loan policy"As a student, I probably can't start a business right now," Binh shared. "Thanks to the student loan from the Social Policy Bank, I had the opportunity to study and pursue my entrepreneurial dream. Now that my business is gradually stabilizing, I hope to access more capital from the Social Policy Bank to create more resources for business development and create more jobs for workers in my hometown."
In Nghe An province, activities supporting young people in accessing loans for economic development and creating stable jobs are regularly implemented. Mr. Nguyen Sy Bach, from the Youth Movement Department of the Provincial Youth Union, stated: In 2023, the total outstanding loan balance entrusted through the Social Policy Bank by the Youth Union reached 2,144 billion VND, providing loans to 41,690 policy beneficiary households and young people for economic development and job creation. Loan capital from the National Employment Fund through the Central Youth Union amounted to over 3.86 billion VND, and from the Provincial Youth Entrepreneurship Fund over 1.7 billion VND... In 2023, the Standing Committee of the Provincial Youth Union worked with the Provincial Social Policy Bank to allocate over 7.3 billion VND in loans for job creation for 65 youth economic development models in the province.
"SUPPORTING" THE GREEN ECONOMY MODEL
In the current socio-economic development trend, regardless of the field, youth union members are a force that quickly grasps new trends. Among these trends,green economic developmentCircular economy, digital transformation, and the application of modern science and technology in production are also encouraged by all levels of the Youth Union and are chosen by a large number of "entrepreneurs".
In Hung Nguyen district, among the innovative startup projects of youth union members, most of the models that have "stood firm" in the market are developing according to the green economy trend. One example is the Vfresh Garden High-Tech Organic Agricultural Products Service Cooperative, managed by Mr. Nguyen Van Dat in Hamlet 2, Hung Linh commune. Mr. Dat's startup model received a 100 million VND loan from the Nghe An Provincial Youth Union. Taking advantage of the land resources and agricultural production tradition in Hung Linh, Mr. Dat chose to start his business on his hometown's land, focusing on organic production, combining livestock farming, crop cultivation, and processing in an environmentally friendly manner.
With about 1 hectare, Mr. Dat grows "demanding" agricultural products such as broccoli, cherry tomatoes, and kale, combined with raising catfish using a hydroponic model. Mr. Dat said: "The market increasingly favors clean agricultural products and high-value products, so the price of organically produced agricultural products is higher. This is an advantage for developing high-tech clean agricultural production, bringing higher value and revenue. The cooperative estimates revenue of 400-500 million VND/year, creating jobs for 3 permanent workers and 5 seasonal workers."
Also stemming from the youth entrepreneurship movement, in March 2023, Dang Van Binh, a Youth Union member from Thach Tien village, Thach Ngan commune, Con Cuong mountainous district, boldly started a business with a preferential loan of 50 million VND from the Provincial Youth Union's Youth Entrepreneurship Support Fund. Binh chose to establish his business with a model of growing Dien pomelos and green-skinned pomelos combined with raising fish and goats for meat on a 1.5-hectare hillside garden.
Along with preferential loans, Binh borrowed additional funds from relatives to invest in planting 150 pomelo trees (both Dien and green-skinned varieties), raising 25 goats, and stocking various types of fish. The livestock, fish pond, and pomelo orchard are cared for using a circular system, supplementing each other's food sources, thus minimizing production costs. The pomelo orchard has yielded two harvests so far, and together with the goats and fish, brings Binh an annual revenue of nearly 150 million VND.
Supporting the youth entrepreneurship movement currently involves channels such as: entrusted capital through the Social Policy Bank, the National Employment Fund, and the Provincial Youth Entrepreneurship Fund. The Provincial Youth Union Standing Committee also coordinated with the Provincial People's Committee to issue a plan for implementing the "Support for Youth Entrepreneurship Program 2023-2030" in Nghe An province, aiming to implement Decision No. 897/QD-TTg dated July 26, 2022, of the Prime Minister approving the "Support for Youth Entrepreneurship Program 2022-2030" in an effective, practical, and synchronized manner throughout the province.
(To be continued)
