Directive 40 of the Secretariat helps Nghe An create a breakthrough in policy credit

On the morning of August 13, the Provincial People's Committee held an online conference to review 5 years of implementing Directive No. 40-CT/TW dated November 22, 2014 of the Secretariat on strengthening the Party's leadership over social policy credit.

Attending the conference were comrades: Nguyen Xuan Son - Standing Deputy Secretary of the Provincial Party Committee, Chairman of the Provincial People's Council; Dinh Viet Hong - Vice Chairman of the Provincial People's Committee; Nguyen Duc Hai - Deputy General Director of the Vietnam Bank for Social Policies chaired the conference; and connecting points in districts and towns.

On behalf of the delegation, Comrade Nguyen Xuan Son - Standing Deputy Secretary of the Provincial Party Committee, Chairman of the Provincial People's Council awarded Certificates of Merit of the Provincial People's Committee to the collectives. Photo: Thu Huyen

Bright spots in implementing poverty reduction goals

As of June 30, 2019, the Nghe An Provincial Branch of the Vietnam Bank for Social Policies is implementing 19 policy credit programs with a total capital of VND 8,237 billion. Disbursement turnover in 05 years (2014 - 2019) reached VND 12,719 billion with 461,250 poor households and policy beneficiaries receiving loans; the average investment level has reached VND 38.5 million/household (2.1 times higher than the end of 2014). Debt collection turnover reached VND 10,572 billion (accounting for 83% of total loan turnover), creating a large revolving capital source, gradually meeting the basic borrowing needs of policy beneficiaries.

Delegates attending the conference at Vinh City. Photo: Thu Huyen

Total outstanding loans reached VND 8,222 billion, an increase of VND 1,991 billion compared to the time before Directive 40-CT/TW; the average annual growth rate was 7.1%, completing the growth target according to the Resolution of the Board of Directors of the Provincial Social Policy Bank, with 241 thousand households having outstanding loans.

Graphics: Lam Tung

Policy credit implemented by the Provincial Social Policy Bank is truly a bright spot in the implementation of the poverty reduction target, contributing to ensuring social security, economic development and new rural construction in the area. The overall poverty rate of the province decreased from 12.1% in 2015 to 5.54% at the end of 2018 according to the standards for the period 2016 - 2020.

Speaking at the conference, delegates continued to affirm that Directive No. 40 has truly come into life, strongly and positively impacting policy credit activities. However, Nghe An is a province with a low starting point economy; budget revenue has not met spending needs, and local capital for entrusted lending is limited.

Representative of Hung Nguyen District Youth Union gave a speech. Photo: Thu Huyen

Therefore, in the coming time, it is necessary to pay attention to increasing capital sources, continuing to implement the loan program for newly escaped poor households when the prescribed period expires; at the same time, allowing to extend the time for households to enjoy credit policies for newly escaped poor households from the time they leave the list of poor households and near-poor households from a maximum of 3 years to 5 years. Increase the maximum loan term of loan programs for newly escaped poor households; loans to support job creation to 10 years to match the production and business cycle of crops and livestock with long growing periods such as growing fruit trees and industrial crops.

Some districts also proposed expanding the loan subjects, raising the maximum loan level of some programs...

Leaders of the Vietnam Bank for Social Policies, Ky Son district, check credit information published by the Bank for Social Policies at the headquarters of the People's Committee of Ta Ca commune, Ky Son district. Photo: Thu Huyen

Mobilizing resources to increase policy credit capital

Speaking at the conference, comrades Nguyen Xuan Son - Standing Deputy Secretary of the Provincial Party Committee, Chairman of the Provincial People's Council; Nguyen Duc Hai - Deputy General Director of the Vietnam Bank for Social Policies acknowledged and highly appreciated the results achieved by the province. After 5 years of implementing Directive No. 40-CT/TW of the Secretariat and Decision 401/QD-TTg of the Prime Minister, Party committees and authorities at all levels have clearly recognized the role and position of social policy credit in implementing the goals of poverty reduction, job creation, new rural construction and ensuring social security of the locality.

Deputy General Director of Vietnam Bank for Social PoliciesNguyen Duc HaiIt is believed that localities and political organizations should gradually reduce free support, and instead increase preferential interest rate loans through policy banks, creating effective investment support. Photo: Thu Huyen

To continue to effectively implement Directive 40 of the Secretariat, it is recommended that authorities at all levels from the provincial to grassroots levels identify the task of directing social policy credit activities as one of the important tasks in the programs, plans, and regular activities of agencies and units. Direct Party committees and authorities at all levels to promote the achieved results, overcome existing problems and difficulties; closely manage, inspect, and supervise social policy credit activities. Create maximum conditions for the activities of the Social Policy Bank in the area, in order to transfer preferential credit capital to the right beneficiaries.

Vice Chairman of the Provincial People's Committee awarded Certificates of Merit of the Provincial People's Committee to individuals with outstanding achievements in implementing Directive 40 of the Secretariat. Photo: Thu Huyen

The comrades also requested localities and the Bank for Social Policies to continue to mobilize maximum resources to supplement policy credit capital associated with restructuring production, economic development, education, vocational training, job creation, ensuring social security; organize technical training activities, training and technology transfer associated with loan activities, helping borrowers use capital effectively.

With a loan from the Vietnam Bank for Social Policies, Mr. Chu Quoc Tru in My Dinh hamlet, Chau Dinh commune, Quy Hop has effectively developed his farm economy. Photo: Thu Huyen

Concluding the conference, Vice Chairman of the Provincial People's Committee Dinh Viet Hong emphasized: Based on the results achieved in the past 5 years and the shortcomings and limitations arising in the implementation process, local Party committees and authorities need to continue to clearly define responsibilities and tasks to assign specific tasks to each department, office and individual to effectively implement social policy credit in the coming period; at the same time, actively direct and regularly urge to ensure effectiveness.

Departments and branches are responsible for advising the province in mobilizing resources; perfecting policy mechanisms; allocating state budget capital; supporting facilities, equipment and means for local CSXH banks. The Vietnam Fatherland Front and socio-political organizations need to strengthen propaganda and mobilization work to ensure that social policy credit policies reach the people, especially those in need, those in need...

Comrade Dinh Viet Hong - Vice Chairman of the Provincial People's Committee

On this occasion, the Chairman of the Provincial People's Committee awarded Certificates of Merit to 15 collectives and 15 individuals with outstanding achievements in implementing Directive 40 of the Secretariat on strengthening the Party's leadership over social policy credit.