Nghe An Social Policy Bank: Effectively implementing social welfare programs.

(Baonghean) - With total managed capital reaching over 6,089 billion VND, an increase of 362 billion VND compared to the beginning of the year, the Social Policy Bank (NHCSXH) of Nghe An province is one of the units with the largest outstanding loans in the entire system. Capital channeled through the NHCSXH has truly made a significant contribution to achieving the goals of poverty eradication, poverty reduction, and ensuring social security throughout the province...

The Social Policy Bank is a state-owned credit institution with an organizational system from the central to local levels, operating on a non-profit basis. It is entrusted by the Government with managing policy credit funds invested for poverty alleviation and social security. Along with the entire system, after 11 years of operation, the Nghe An Provincial Social Policy Bank now has a network operating in 21 districts, towns, and cities, with 480 transaction points located at commune-level People's Committees, and 8,154 savings and loan groups operating in 100% of villages and hamlets throughout the province. In 2013, despite the challenging domestic economic situation, under the direction of the Board of Directors and the General Management Board, and adhering closely to the socio-economic development goals and social security objectives of the province, the Vietnam Bank for Social Policies (VBSP) in Nghe An province maintained good growth, effectively providing capital to meet the needs of production development, housing, education, environmental improvement, etc., for poor households and other policy beneficiaries throughout the province.

Officials from the Dien Chau District Department of Education and Training guide students through the procedures for student loans for the 2013-2014 school year. Photo: Huu Nghia

By the end of 2013, the Nghe An branch of the Vietnam Bank for Social Policies (VBSP) was implementing 15 preferential credit programs, including 12 programs assigned by the Government and 3 preferential credit programs entrusted locally, with a total managed capital of VND 6,089 billion, an increase of VND 362 billion compared to 2012. As a branch with a large outstanding loan balance and many policy beneficiaries in the area, the unit's disbursement and debt collection activities during the year were very significant, as demonstrated by:

Loan disbursements reached VND 1,628 billion, with programs having large disbursement volumes including loans to poor households (VND 618 billion), loans to students (VND 378 billion), and loans to near-poor households (VND 313 billion). Debt collection reached VND 1,281 billion, with collected funds accounting for 78% of disbursed funds, enabling the unit to proactively manage its capital resources and reduce pressure on the state budget.

In 2013, in addition to ensuring the smooth operation of regular activities related to disbursement, debt collection, interest collection, and credit growth, the Vietnam Bank for Social Policies (VBSP) of Nghe An province identified it as a year to focus on improving credit quality through solutions, primarily by enhancing the operational quality of the savings and loan group network; improving the quality of entrusted credit; effectively handling and recovering overdue debts and long-standing bad debts; and improving the quality of transactions at the commune level. Thanks to this, to date, 98% of the outstanding loans of the Vietnam Bank for Social Policies (VBSP) in Nghe An have been entrusted to four socio-political organizations (Farmers' Association, Women's Union, Veterans' Association, and Youth Union) for certain stages of processing. Savings and Credit Groups have been established in all villages, and the group management boards are enthusiastic, ethical, and dedicated individuals who receive guidance and training from the bank and socio-political organizations. This has enabled them to effectively fulfill their roles and functions in delivering capital to poor households and policy beneficiaries, helping them access financial services, monitoring loan utilization, and promptly understanding the concerns and aspirations of poor households and policy beneficiaries. Borrowers have fulfilled their repayment obligations well, resulting in bad debts remaining low at only 0.36% of the total outstanding loans.

Over the years, preferential credit funds have helped nearly 1 million poor households and other policy beneficiaries access loans from the Vietnam Bank for Social Policies (VBSP), including over 500,000 poor and near-poor households who received loans for production development, contributing to helping 70,000 poor households overcome poverty; attracting and creating jobs for 15,000 workers; providing loans for over 170,000 disadvantaged students; enabling nearly 8,000 workers to go abroad for employment; providing loans for 75,000 rural households to build clean water and sanitation facilities to improve the environment; and providing loans for 26,000 poor households to build houses. The government's preferential credit programs implemented by the VBSP are truly an important source of capital, acting as a "support system" for poor households and policy beneficiaries, especially those in remote, mountainous, and particularly disadvantaged areas. The effectiveness of preferential credit programs implemented by the Vietnam Bank for Social Policies (VBSP) has affirmed that the government's investment resources for the poor and policy beneficiaries are an important solution to stimulate production, livestock farming, economic development, improve the quality of life, and raise the educational level of the people. This helps them gradually rise out of poverty and become wealthy, integrate into the community, contribute to promoting sustainable economic development, social stability, strengthening people's trust in the Party and the State, and building a just, democratic, and civilized society.

Entering 2014, the final year focused on achieving the goals and targets of the Party Congress resolutions at all levels, including the poverty reduction target; and the first year of implementing Resolution 26-NQ/TƯ of the Politburo on the direction and tasks for the development of Nghe An province until 2020 and Decision No. 2355/QD-TTg of the Prime Minister on the Project for the development of Western Nghe An until 2020, the objectives set by the Social Policy Bank of Nghe An province are to increase capital and outstanding loans by 7-10% compared to 2013; develop branches in a stable and sustainable direction; and effectively meet the capital needs of poor households, near-poor households, and other policy beneficiaries, contributing positively to the national goal of poverty reduction and ensuring social security in the province.

Continuously focus on improving credit quality, keeping overdue loans below 0.5% of total outstanding loans. Strengthen inspection and supervision of policy credit management at all levels, down to individual borrowers, to ensure tight and safe management of capital and improve capital utilization efficiency. Coordinate with socio-political organizations and commune-level authorities to promote the dissemination of State policies on preferential credit for poor households and other policy beneficiaries to the people, helping them access and fully benefit from these policies, as well as enhancing their responsibilities and obligations when receiving preferential policies from the Party and the State.

Tran Khac Hung(Director of the Provincial Social Policy Bank)