Nghe An diversifies resources to implement policy credit

Socialization of resources

One of the units that has well implemented Directive 40 on strengthening the Party's leadership over social policy credit in the area is Nghi Loc district.

Mr. Nguyen Viet Ha - DirectorSocial Policy BankNghi Loc district said that before Directive 40, Nghi Loc district leaders were very interested in loan sources for policy beneficiaries. In 2007, the district budget transferred 500 million VND to the district Social Policy Bank.

Implementing the spirit of Directive 40, every year the district tries to transfer 300 - 500 million VND, of which the highest transfer was 700 million VND in 2019 to the district Social Policy Bank. In the first quarter of 2021 alone, the total amount transferred to the Social Policy Bank for entrusted loans to poor households, near-poor households and policy beneficiaries in the area was 535 million VND, of which the district budget was 300 million VND, the commune budget was 235 million VND. Nghi Quang is the commune with the highest allocation, having so far allocated 150 million VND. Thus, to date, the total remaining budget balance of the district and commune transferred to the Social Policy Bank for entrusted loans is over 3 billion VND.

From this source of capital, poor people,policy subjectshave invested in economic development and stabilized their lives. A typical example is Mr. Phan Thanh Binh's family, a carpentry producer in Block 1, Quan Hanh town. In recent years, his family has been involved in carpentry but lacked capital so they could not expand their scale. In 2021, his family borrowed 50 million VND from the Employment Program to purchase machinery for production. Currently, Mr. Binh's facility creates jobs for 4 workers. Every month, in addition to the salary for workers and production investment, he allocates more than 1 million VND to pay interest and save to renew the capital source.

Mr. Binh shared: Thanks to the bank's capital, his family has more resources for production, but he still wants the bank to increase the loan capital to continue investing in raw materials for production.

With loans from the Vietnam Bank for Social Policies, many households have boldly invested in farms to develop the economy. Photo: Thu Huyen

In Thanh Chuong district, Mr. Nguyen Huu Hien - Vice Chairman of the District People's Committee, Head of the District Social Policy Bank Representative Board said: Capital mobilization in the locality has changed positively, the local budget capital has had a good start, in the first quarter of 2021, 505 million VND was mobilized from the district budget, the Youth Entrepreneurship Fund of the District Youth Union and the local budget of 2 communes (Thanh Yen and Thanh My). At the same time, with the motto "The State and the people work together", in the quarter, deposits through the group increased by nearly 5 billion VND, the capital mobilized at market interest rates increased by more than 1 billion VND.

According to Nghe An Bank for Social Policies, financial resources for policy credit investment have been continuously increased, basically meeting the capital needs of poor households, near-poor households and other policy beneficiaries in the area. By the end of the first quarter of 2021, the whole province had received 26.7 billion VND/plan of 25 billion VND, exceeding the target assigned by the Central Government. Of which: The provincial budget transferred 15 billion VND, the district and commune budgets transferred 7.3 billion VND; supplemented from interest in the quarter 1.1 billion VND and received 3.3 billion VND on trust from other organizations.

The delegation of the Vietnam Bank for Social Policies gave gifts to policy families in Ta Ca (Ky Son). Photo: Thu Huyen

Connecting the power of the entire political system

After 5 years of implementation, Directive No. 40-CT/TW of the Central Party Secretariat has truly come into life and has had a strong and positive impact on policy credit activities. Thanks to that, local Party committees and authorities at all levels have raised their spirit, responsibility and awareness in implementing policy credit. Well organized implementation of the policy of mobilizing and allocating local budget capital entrusted to the Vietnam Bank for Social Policiesadditional capitalfor policy credit programs associated with production restructuring, economic development, education and training, vocational training, job creation, social security, and sustainable poverty reduction.

Mr. Tran Khac Hung - Director of the Provincial Social Policy Bank said: Implementing Directive No. 40 of the Central Party Secretariat, the Provincial People's Committee has directed relevant departments and branches to advise the Provincial Party Standing Committee to issue Directive No. 29 on strengthening the Party's leadership over social policy credit, in order to concretize the Party's regulations on leadership over policy credit in the province. Next, the Provincial People's Committee has issued a plan for implementation. Every year, based on the implementation results in localities, the Provincial People's Committee continues to issue directive documents, assign targets to the People's Committees of districts, cities and towns and urge the implementation of the annual budget allocation and transfer to the Social Policy Bank at all levels for lending to poor households and other policy beneficiaries in the area.

Officers of the People's Credit Fund of Quy Hop visited the family of Ms. Vi Thi Dao in Thai Quang hamlet, Chau Thai commune (Quy Hop) - an effective loan borrower in the area. Photo: Thu Huyen

Thanks to that, many economic models have been implemented and brought about efficiency, creating stable income for poor households and policy beneficiaries. Typical models include: growing passion fruit trees for high income in communes of poor districts Que Phong and Tuong Duong; crop planting projects in Dien Chau and Nghi Loc districts; raising large livestock for breeding, meat, and black chickens in poor districts Ky Son, Tuong Duong, and Que Phong; large-scale production forest planting projects in Tan Ky, Nghia Dan, and Thanh Chuong districts; farm economic models, renovating mixed gardens to grow fruit trees for high economic value in Quy Hop, Con Cuong, Nghia Dan, Tan Ky, and Yen Thanh districts; models of growing industrial crops and high-value raw material crops (coffee, rubber, tea, sugarcane, etc.) in Anh Son, Nghia Dan, Quy Hop, Tan Ky, Anh Son, Thanh Chuong, and Do Luong districts, etc.

Investment loan projects to develop traditional craft villages contribute to preserving the national cultural identity and local culture, such as: soy sauce making in Nam Dan district, bamboo and rattan weaving in Yen Thanh district, brocade weaving in Con Cuong district, seafood processing in coastal districts of Cua Lo, Quynh Luu, Hoang Mai town, Dien Chau, mulberry growing and silkworm raising in communes along Lam river of Do Luong district,...

However, resources to implement a number of policy credit programs serving the goal of rapid and sustainable poverty reduction and ensuring social security are still limited, not meeting the actual needs of policy subjects. Every year, local budget capital accounts for a low proportion (2%) compared to the total capital (while the national average accounts for 8.6%), some localities have not paid due attention to allocating budget capital to entrust the Social Policy Bank for lending...

Shrimp farming model of Mr. Nguyen Tien Cuong, Hamlet 2, Dien Trung Commune (Dien Chau). Photo: Thu Huyen

It can be affirmed that Directive 40 has created a breakthrough in connecting the strength of the entire political system with the Bank for Social Policies to support the poor and policy beneficiaries, highlighting the humanity of the policy for the poor, so that none of them are left behind. Therefore, the limitations need to be recognized and overcome by localities and social organizations, so that credit for the poor and policies continue to be effective.