'Bridge' helps Nghe An women's union members develop economy
Through the Savings and Loan Groups managed by the Provincial Women's Union, thousands of female members in Nghe An have received preferential loans from the Vietnam Bank for Social Policies (VBSP) to develop production and business models.
Handing over policy credit "fishing rod"
With a passion for sculpture, carving and civil carpentry, Mr. Nguyen Van Huy in Hamlet 5, Hanh Lam Commune, Thanh Chuong discussed with his wife, Ms. Pham Thi Huyen, to open a civil carpentry workshop. Initially, capital was lacking, they could only buy a saw and a few other tools for the job. Knowing that the Social Policy Bank had a loan program to create jobs to support loans, Mr. Huy's family registered with the Savings & Loan Group in Hamlet 5, led by Ms. Dang Thi Ngoc.
Thanks to the "fishing rod" of 50 million VND loan capital from the Social Policy Bank, Mr. Huy and his wife invested in an additional sawing machine to expand their civil carpentry workshop. Since having more supporting machinery, they have received more orders, delivered on time, and improved quality and reputation.
Ms. Huyen did not have a stable job and income before, but since the factory was expanded, she and her husband have been managing the factory's operations. She is a market employee, accountant and treasurer. The work is quite busy, initially the family's income has increased significantly from 100 million to 120 million VND/year, so the couple is very excited.
Ms. Nguyen Thi Hue - President of the Women's Union of Hanh Lam commune said: With the effort to develop the economy to change life, Ms. Huyen's family has built a spacious house with full amenities; is one of the typical economic development of the commune from the loan capital of the Social Policy Bank. Currently, in Hanh Lam commune, nearly 2 billion VND is being lent from the job creation credit program of the Social Policy Bank with 38 customers receiving loans. Of which, the Women's Union of the commune is being entrusted to lend 517 million to 11 customers.
Not only in Hanh Lam commune, the use of loans has been widely developed by women in communes in Thanh Chuong district. Ms. Dinh Thi Han - President of the Women's Union of Thanh Chuong district said: By August 31, 2024, the district Women's Union managed 116 savings and loan groups, implementing loan entrustment with a total outstanding debt of 354,396 million VND, for 4,085 borrowers. To ensure the safety and effectiveness of capital sources, the district Women's Union regularly inspects and supervises the capital sources of borrowers. Coordinate with functional agencies to strengthen training, transfer of scientific and technical advances, new technologies into production, helping members effectively apply them to cultivation, animal husbandry, etc.
Support women to borrow capital for economic development
As a socio-political organization in the political system, the Women's Union of Nghe An province always promotes its role in gathering members and women, promoting propaganda and dissemination of the Party and State's policies and guidelines to members and women.
Immediately after the Secretariat issued Directive No. 40-CT/TW dated November 22, 2014 on strengthening the Party's leadership over social policy credit, the Women's Union at all levels has made strong, proactive changes, actively promoting the propaganda of the Party and State's social credit policies and guidelines, always focusing on building many models of activities to support women in borrowing capital for economic development and sustainable poverty reduction.
Every year, the Provincial Women's Union includes the development target and improvement of the quality of the Savings and Loan Groups in the emulation criteria of the Unions at all levels. Directs the grassroots Women's Union to proactively coordinate with the authorities at the same level to identify beneficiaries, participate in reviewing poor households, near-poor households and the causes of poverty of households to ensure transparency, publicity and democracy. Develop a plan to strictly implement the lending process for poor households and a number of credit policy programs.
At the same time, direct the Women's Union at the grassroots level to coordinate with the district-level Social Policy Bank and local authorities to urge the collection of due debts, handle overdue debts, and debts that have left the locality... Thanks to that, credit quality has been significantly improved: The growth rate of entrusted outstanding loans increased from 1.6% in 2014 to 5% in 2019 and 10.7% by April 2024 (an increase of 9.1% compared to the beginning of the period).
In order to increase lending capital, create awareness of savings habits for members, arouse a sense of responsibility, the spirit of mutual love, mutual support to overcome difficulties..., the Women's Union at all levels has coordinated with the Bank for Social Policies to organize propaganda and mobilize members to practice savings well. The rate of members participating in savings through groups increased from 89% in 2014 to 100% in April 2024.
Currently, there are 77,081 members participating in savings with a deposit balance of VND 223,612 billion (an increase of VND 169,680 billion compared to the same period in 2014). Thereby, resources have been mobilized to help members in difficult circumstances in general, and households borrowing preferential loans in particular, to have conditions to develop production, stabilize their lives, and repay loans. Due debts have been paid in full, and interest payments have been seriously implemented by households, achieving high results.
Along with support and creating loan capital, the Association at all levels has proactively coordinated with functional sectors to organize science and technology transfer, vocational training; build economic development models, and develop female-owned businesses.
Over the past 10 years, the Women's Union at all levels has coordinated with relevant agencies to organize training for 374,198 women on techniques for caring for crops and livestock, production and business knowledge, and guidance for households borrowing capital to use the loan for the right purpose, creating conditions for households to implement the Bank's credit programs effectively and sustainably.
Ms. Le Thi Huong Giang - Vice President of the Provincial Women's Union said: Thanks to the efforts of the Women's Union at all levels, the capital entrusted from the Social Policy Bank managed by the Union has been increasingly expanded, credit balance has increased, creating opportunities for more and more members and women in need to access loans. Many women have risen up to escape poverty, become rich legitimately, some have become farm owners, good business production models, cooperative directors, business directors, starting up successfully with an income of hundreds of millions of VND/year.
The Association always identifies the entrustment activities with the Bank for Social Policies as an important task that must be focused on and effectively implemented. In the coming time, the Women's Union of Nghe An province will coordinate with relevant agencies to organize training, transfer scientific and technical advances, build collective economic models, guide start-ups, and start businesses to help poor households use loans effectively, escape poverty sustainably, and improve the quality of life...
Ms. Le Thi Huong Giang - Vice President of Provincial Women's Union
To continue to effectively implement Directive No. 40-CT/TW, Conclusion 06-KL/TW, it is proposed to increase the maximum loan amount for the rural clean water and environmental sanitation loan program to 20 million VND/project; supplement the loan program for households with average living standards to develop production and business in accordance with the socio-economic development goals in the current period. Along with that, it is recommended that the Provincial People's Committee and the People's Committees of districts, towns and cities continue to balance and prioritize increasing capital sources for loans to the poor and other policy beneficiaries, especially local budget capital sources for loans to support job creation, maintain and expand employment.
