Economy

Lesson 2: "Boost" from loan support policy

Thu Huyen - Hoai Thu DNUM_ADZAHZCACE 09:15

To start a successful business, youthful enthusiasm is not enough. What union members and young people need is support from authorities and support from loan sources. In fact, in Nghe An, dozens of youth start-up models have been supported with loans worth billions of VND.

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THE DESIRE OF THE "YOUNG BOSS"

Coming to Con Ca hamlet, Nghia Loc commune, Nghia Dan district, many people know the "boss" Nguyen Thanh Binh (born in 1992). Although he is still young, 5 years ago, Binh was the owner of a textile and garment export business to many major markets in the world such as the US, Italy, Hong Kong, China... In the afternoon at the end of May, after visiting the production line, we had Binh share his story about starting a business in the field of weaving fashion and sports socks for export.

“My entrepreneurial journey was also coincidental when, after a long time working as an intern at a company, I discovered that I was not suitable for the office environment. I wanted to have more experiences outside of life. So, I was always looking for something to do business. And then, right on Tet holiday, a friend and I decided to start a business selling lucky money, Tet gifts... After that occasion, we also earned a small amount of money, but this item is seasonal so it is difficult to stabilize, I continued to think and look for ideas. Luckily, one fine day, a friend gave me some pairs of socks. Holding the socks in my hand, I expressed my thoughts. The next day, my friend and I started researching and starting a sock business,” Binh shared.

Dây chuyền sản xuất tất của anh Nguyễn Thanh Bình ở Nghĩa Lộc (Nghĩa Đàn) Ảnh Thu Huyền
Mr. Nguyen Thanh Binh introduces the sock production line. Photo: Thu Huyen

“Thinking is doing, we went to the coffee shop and started creating a fanpage, posting products. Luckily, as soon as we posted a photo of the product, someone came in to place an order. Because we wanted a better price, we encouraged him to order more. After closing the order, we quickly went to buy the goods and delivered them to the customer. In total, we broke even because we forgot about the cost of gas,” Binh happily said.

From that first order, Binh began to research and expand product designs, developing his customer base. The strategy was to sell wholesale, saving maximum costs. For initial capital, Binh used tuition fees that had not yet been paid to the school and a loan of 10 million VND from the student loan program of the Social Policy Bank. Just like that, Binh expanded his business by taking advantage of social networks and e-commerce platforms...

Going into business, realizing that the fashion industry has many products and models, Binh began to focus on his own designs. At that time, finding a unit that could design sock products was not much. If there was, the cost was high, the price was high. Therefore, in 2019, by chance, he found a place selling old machinery, Binh decided to buy an old set of machines to operate. Also in this year, Binh established Begen Company Limited, of which he was the director. In 2020, the company added a number of sock weaving line equipment, shaping machines, with a production capacity of 4,000 pairs/day, with a total investment of 5 billion VND. Thereby, improving product quality, reducing production costs. Along with production, Binh and his brothers began to focus on building product brands. Currently, the output is 100,000 pairs/month, creating jobs for more than 20 - 30 local workers.

Binh confided, if notloan policyAs a student, I probably wouldn’t be able to start a business yet. “Thanks to the student loan from the Social Policy Bank, I had the opportunity to study and build my dream of starting a business. Now that my business has gradually stabilized, I hope to access capital from the Social Policy Bank to create more resources to develop my business and create more jobs for workers in my hometown,” Binh shared.

Nhiều lao động có việc làm, thu nhập từ cơ sở sản xuất do thanh niên khởi nghiệp. Ảnh: Thanh Quỳnh
Many workers have jobs and income from production facilities started by young people. Photo: Thanh Quynh

In Nghe An, activities to support young people to borrow capital to develop the economy and create stable jobs for local youth are regularly implemented. Mr. Nguyen Sy Bach - Youth Movement Committee of the Provincial Youth Union said: In 2023, the total outstanding loan balance entrusted through the Social Policy Bank of the Youth Union reached 2,144 billion VND, lending capital to 41,690 policy households and young people to develop the economy and create jobs. Loan capital from the National Employment Fund through the Central Youth Union with more than 3.86 billion VND, from the Provincial Youth Startup Fund with more than 1.7 billion VND... In 2023, the Standing Committee of the Provincial Youth Union worked with the Provincial Social Policy Bank to arrange loans to create jobs with an amount of more than 7.3 billion VND for 65 youth economic development models in the province.

Biểu đồ - Một số nguồn vốn hỗ trợ thanh niên vay vốn phát triển kinh tế, giải quyết việc làm. Đồ họa: H.Q
Chart - Some sources of capital to support young people to borrow capital for economic development, 2023. Graphics: HQ

“SUPPORTING” THE GREEN ECONOMIC MODEL

In the current development trend of the socio-economy, regardless of the field, union members and youth are the force that quickly grasps new trends. Among them, the trendgreen economic development, circular economy, digital transformation, and application of modern science and technology in production are also encouraged by all levels of the Youth Union and chosen by the majority of "startups".

Tỉnh đoàn Nghệ An hỗ trợ các mô hình khởi nghiệp của thanh niên vay vốn. Ảnh: Thanh Quỳnh
Nghe An Provincial Youth Union supports youth start-up models with loans. Photo: Thanh Quynh

In Hung Nguyen district, among the creative start-up projects of union members and young people, the models that "stand firm" in the market mostly develop according to the green economic trend. One can mention the model of Vfresh Garden High-tech Organic Agricultural Service Cooperative, directed by Mr. Nguyen Van Dat in Hamlet 2, Hung Linh Commune. Mr. Dat's start-up model was supported by Nghe An Provincial Youth Union with a loan of 100 million VND. With the advantage of land fund and agricultural production tradition in Hung Linh, Mr. Dat chose to start a business from his hometown land in the direction of organic production, combining livestock farming, cultivation and environmentally friendly processing.

With about 1 hectare, Mr. Dat grows "difficult" agricultural products such as broccoli, cherry tomatoes, kale combined with raising catfish in a hydroponic model. Mr. Dat said: "The market increasingly favors clean agricultural products and high-value products, so the cost of organically produced agricultural products is higher. This is an advantage for developing high-tech clean agricultural production to bring higher value and revenue. The cooperative estimates a revenue of 400-500 million VND/year, creating jobs for 3 regular workers and 5 seasonal workers."

Cán bộ Tỉnh đoàn tham quan mô hình nông nghiệp xanh tại trang trại của đoàn viên xã Hưng Lĩnh Hưng Nguyên ảnh PV
Provincial Youth Union officials visit the green agriculture model at the farm of Mr. Nguyen Van Dat, Hung Linh commune (Hung Nguyen). Photo: PV

Also stemming from the youth start-up movement, in March 2023, union member Dang Van Binh in Thach Tien village, Thach Ngan commune, Con Cuong mountainous district boldly started his business with a preferential loan of 50 million VND from the Youth Start-up Support Fund of the Provincial Youth Union. Binh chose to start a business with a model of growing Dien grapefruit, green-skin grapefruit combined with raising fish and goats for meat on a 1.5-hectare hill garden area.

Along with the preferential loan, Binh mobilized additional loans from relatives to invest in planting 150 Dien grapefruit trees, green-skin grapefruit, raising 25 goats and releasing meat fish. The livestock, fish pond and grapefruit garden are cared for in a circular manner, supplementing each other's food, so production costs are minimized. The grapefruit garden has so far yielded 2 harvests, together with goats and fish, bringing Binh a revenue of nearly 150 million VND in 1 year.

Đàn dê của anh Đặng Văn Bình (xã Thạch Ngàn, huyện Con Cuông) được đầu tư từ nguồn vốn vay hỗ trợ khởi ngiệp ảnh PV
Mr. Dang Van Binh's goat herd (Thach Ngan commune, Con Cuong district) was invested with start-up support loans. Photo: PV

Supporting the youth start-up movement, there are currently "channels" such as: Trust capital through the Social Policy Bank, the National Employment Fund, and the Provincial Youth Startup Fund. The Provincial Youth Union Standing Committee also coordinated with the Provincial People's Committee to issue a Plan to implement the Program "Supporting youth start-ups for the period 2023 - 2030" in Nghe An province to implement Decision No. 897/QD-TTg dated July 26, 2022 of the Prime Minister on approving the Program "Supporting youth start-ups for the period 2022 - 2030" in an effective, practical and synchronous manner in the province.

(To be continued)


>> Lesson 1: Starting a business from the village
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Lesson 2: "Boost" from loan support policy
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