Transformation thanks to policy-based credit in Nghe An
After 10 years of implementing Directive No. 40-CT/TW on "Strengthening the Party's leadership over social policy credit," policy capital in Nghe An has helped hundreds of thousands of poor households and policy beneficiary families to develop economically.
Policy-based capital provides support for poor households.
One day at the end of June, we visited Chau Khe commune (Con Cuong district) to attend the launch ceremony of a sustainable savings and loan group model linked to community activities in Bung Xat village. This is a buffer zone commune of Pu Mat National Park.
Ms. Lo Thi Linh, head of the savings and loan group in Bung Xat village, said: "The village's loan group has 45 members, with a current outstanding loan balance of over 3.4 billion VND. Thanks to attracting members to participate regularly, interest collection and savings mobilization are smooth, the amount of savings has increased compared to before, and interest is collected quickly. The current savings balance is over 98 million VND and there are no bad debts."
Ms. Linh said that the group members are currently participating in regular monthly meetings. During these meetings, members exchange experiences on borrowing capital, investing in production, and raising funds within the group to support each other in life. Members also exchange and learn from successful economic models. As a result, the number of poor households in Bung Xat village has decreased from 35 (in 2019) to 18.
The Chairman of the People's Committee of Chau Khe commune, Mr. Kha Van Thuong, also affirmed that the loan group's activities have helped its members become more connected and operate more effectively. Combining loan group activities with community activities has made members enthusiastic and actively involved. Especially by integrating loan and savings activities with folk song clubs and young family clubs, it consistently attracts many participants.
Currently, many successful production and business models in Con Cuong district have benefited from loans from the Policy Bank. One example is Mr. Lo Van Mon in Lam Khe village, Chi Khe commune. After returning home to avoid the Covid-19 pandemic, thanks to a 50 million VND loan from the Policy Bank, he was able to continue his shoe-making business and invest in livestock farming and forestry. After three years of disruption due to the pandemic, his life has improved, and he now has a stable income and savings.
The couple's house is situated in a lush 5-hectare acacia plantation. During a tour of the factory and acacia plantation, Mr. Lo Van Mon excitedly shared that, in addition to forestry and cattle farming, his shoe factory provides employment for 7-10 local workers. Although revenue isn't yet high, he can confidently say that after working far from home for some time, he and his wife can now confidently produce goods in their hometown without having to worry about seeking work elsewhere. Currently, orders for shoes are high, and they hope to receive more preferential loans to invest in expanding production and purchase more cattle for breeding…
Many localities today are witnessing the transformation of the rural landscape; wide roads and spacious houses. Local residents mention the changes in the new way of life through economic development models funded by loans from the Social Policy Bank.
In Dien Chau district, we visited the family of Mr. Tran Dinh Quyen in Dong Ha hamlet, Dien Van commune. At midday, his wife was busy selling groceries, while Mr. Quyen was busy raising deer and managing his shrimp pond. In 2015, with a 50 million VND loan approved from the program for loans to households engaged in production and business in disadvantaged areas, Mr. Quyen began building enclosures and buying a pair of breeding deer. Thanks to proper breeding techniques, the deer grew quickly and reproduced rapidly, increasing in number. At one point, the deer enclosure housed up to 16 deer.
Besides selling deer antlers, his family has also become a reliable supplier of deer breeding stock for the local people. The profits from deer farming are then used to invest in whiteleg shrimp ponds.
Mr. Quyen said that, with the local policy of encouraging the conversion of inefficient agricultural land into aquaculture, he converted his land to shrimp farming. Currently, he sells 2.5 to 3 tons of commercial shrimp per harvest. Raising deer and shrimp brings his family over 200 million VND per year, providing them with the means to support their children's education.
Mr. Nguyen Van Tuan, Director of the Social Policy Bank of Dien Chau District, said with a cheerful expression that Dien Van is a coastal commune in a difficult area, where in the past, people mainly relied on fish and salt for their livelihood. However, visiting Dien Van commune today, the rural landscape has changed; along the Bung River, many multi-story houses stand close together. Directive No. 40 is seen as a breath of fresh air, making a significant contribution to building new rural areas and changing the face of Dien Chau district.
Party committees and government authorities work together.
As a densely populated province, with over 84% of its population living in rural areas and over 15% belonging to ethnic minorities, Nghe An province faces numerous challenges in its poverty reduction efforts. After 10 years of implementing Directive No. 40-CT/TW and nearly 4 years of implementing Conclusion No. 06-KL/TW, these major policies of the Party Central Committee have truly become ingrained in daily life, having a strong and positive impact on policy credit activities. Local Party committees and authorities have considered leading and directing policy credit activities as one of the top priorities in their regular programs and plans. Therefore, policy credit activities have undergone significant transformation, with widespread impact and high levels of social participation.
Mr. Ha Xuan Quang, Secretary of the Dien Chau District Party Committee, stated: "Dien Chau is a coastal district with a large population and a high demand for loans to develop production and business, especially credit from the Social Policy Bank. To effectively implement Directive No. 40 and Directive No. 29, we emphasize the role and responsibility of local leaders in grassroots credit work, creating favorable conditions for the poor and policy beneficiaries to access and use loans effectively. Mobilizing resources for social policy credit is also a priority for the locality. To date, the Dien Chau branch of the Social Policy Bank has the largest outstanding loan balance in the province, with nearly 1,000 billion VND in policy loans in the area, of which more than 7 billion VND is transferred from the district budget."
Not only in Dien Chau district, but many localities in Nghe An province have made significant progress thanks to loans from the Social Policy Bank and the proactive involvement of local authorities at all levels. Since the implementation of Directive 40 (2014 - 2024), the total loan disbursement has reached 27,706 billion VND. As of June 30, 2024, the total outstanding policy credit reached 13,356 billion VND with 234,414 poor households and other policy beneficiaries still having outstanding loans.
Mr. Tran Khac Hung, Director of the Provincial Social Policy Bank, stated: Through the implementation of preferential credit policies, the combined strength of the entire society, local Party committees and authorities at all levels, especially the strength of political and social organizations, has been mobilized to participate in the poverty reduction program, caring for the lives of the poor and policy beneficiaries; guiding and creating conditions for them to learn how to do business, gradually changing their awareness, and striving to escape poverty sustainably.
Preferential loan capital provided through banks has provided funding to 742,060 poor households and policy beneficiaries, helping them overcome capital shortages, unemployment, and prevent usurious lending in rural areas. This has positively impacted cultural life, contributed to socio-economic development, stabilized social order and security, and strengthened people's trust in the Party and the State.
The results achieved cannot be mentioned without acknowledging the role and involvement of all levels of government in providing policy capital. Comrade Bui Thanh An, Vice Chairman of the Provincial People's Committee and Head of the Provincial Representative Board of the Social Policy Bank, stated: During the implementation of Directive 40, the Provincial Party Committee, the Provincial People's Council, and the Provincial People's Committee have consistently directed all levels and sectors to proactively coordinate with the Social Policy Bank to focus resources and increase lending to the poor and other policy beneficiaries, while emphasizing efficiency to contribute to achieving poverty reduction goals, ensuring social security, economic development, and building new rural areas in the province.
To date, the total capital and outstanding loans have reached over 13 trillion VND, of which local budget capital contributed over 420 billion VND. The Provincial People's Committee has issued a Social Policy Credit Investment Project for the period 2023-2025 with a total of 400 billion VND of local budget entrusted to the Social Policy Bank for lending.
To ensure the continued effectiveness of Directive 40, in the coming period, Nghe An province will direct all levels and sectors in the province to further strengthen the leadership of Party committees, governments, and the Board of Directors of the Social Policy Bank at all levels, and enhance the role of the Fatherland Front and other socio-political organizations in policy credit. It will maximize the mobilization of resources for social policy credit, paying attention to allocating funds from the local budget for entrusted lending; and concentrate policy credit funds originating from the State budget under a single entity, the Social Policy Bank, to manage lending effectively…
Vice Chairman of the Provincial People's Committee Bui Thanh An
