Policy capital creates 'leverage' for socio-economic development in Nghe An

Large capital, high efficiency

Nghe An is the province with the third largest policy credit capital in the country. In recent times, through the organization and implementation of preferential credit policies, the combined strength of the whole society, local authorities at all levels, especially the strength of socio-political organizations, has been mobilized to participate in poverty reduction programs, care for the lives of the poor and other policy beneficiaries; guide and create conditions for them to know how to do business, gradually change their awareness, and strive to escape poverty sustainably.

From the first 3 credit programs, up to now, the Social Policy Bank, Nghe An branch, has deployed 22 credit programs. Currently, policy credit capital is still mainly focused on a number of key programs serving the goals of poverty reduction, job creation, new rural construction and social security. Along with the growth of outstanding credit programs, the quality of policy credit has continuously improved, bad debt has been strictly controlled and continues to decrease.

In 2024, the Branch provided credit to 74,907 poor households and other policy beneficiaries for production, business, and improving their lives. According to statistics, in 2024, 25,079 poor and near-poor households escaped poverty thanks to loans. Policy credit continues to make an important contribution to the implementation of the province's poverty reduction target.

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Along with professional activities, the Provincial Social Policy Bank has done well in social and charity work. In 2024, it mobilized cadres and union members to contribute over 1.4 billion VND to organize charity activities; built 10 more gratitude houses for the poor in Ky Son, Tuong Duong, Quy Chau, Que Phong, Tan Ky districts, and Vinh city. Thus, in the period of 2023-2024, Nghe An Social Policy Bank has built 31 houses for the poor. Currently, the Provincial Branch continues to be assigned by the Provincial People's Committee to help Chau Thang commune, Quy Chau district to escape poverty in the period of 2022-2025.

Sharing about the results achieved, Mr. Tran Khac Hung - Director of the Social Policy Bank said: Thanks to the innovation and creativity in operations, in 2024, the Social Policy Bank of Nghe An province achieved many important results. That is, advising the Provincial Party Committee to organize a summary of 10 years of implementing Directive No. 40-CT/TW; advising the People's Committees at the provincial and district levels in the whole province to allocate budget sources to entrust to the Social Policy Bank to create a source of loans for policy beneficiaries according to the approved project (150 billion VND, completing 300% of the target assigned by the Central Government); gradually concretizing to implement the goals of the Development Strategy of the Social Policy Bank to 2030.

Effectively implement a number of new preferential credit programs in the province according to the Prime Minister's Decision, contributing to the effective implementation of preferential policies for vulnerable groups; implementing social security and equity. Focus on promoting technological innovation, digital transformation, administrative reform, administrative procedure reform; promote scientific research, experience initiatives; strengthen training and fostering for unit staff, staff performing operational tasks to improve labor productivity and work efficiency.

Also in 2024, the Provincial Social Policy Bank will build a model of skillful mass mobilization combined with building a strong government through the Project on Building Savings and Loan Groups associated with community activities in all 21 districts, towns and cities of the province.

Savings and loans groups in a sustainable manner associated with community activities have brought many practical benefits. The Social Policy Bank has achieved the "dual goal" of lending - debt collection - interest collection - deposit collection, while ensuring democracy - transparency in lending through "people discuss - people do - people supervise" all loan management activities at the grassroots level.

This model has become a popular “forum” in the village, both as a credit unit, supporting loans, and as a place to organize and lead community cultural activities for the people. By the end of 2024, the Branch had built 771 sustainable savings groups across the province.

Strengthen solutions, successfully complete set goals

However, Nghe An is still a province with a high rate of poor households and policy beneficiaries, the demand for policy credit loans is still very large, especially the demand for investment capital for job creation support programs; while currently the capital source mainly depends on the central government, resources from local budgets are still limited and have not fully met the needs of policy beneficiaries.

Large credit scale, high annual growth rate, but due to the characteristics of policy credit with quite small loans, large number of customers, wide operating area, lending activities, debt collection, interest collection are mainly carried out in communes... Meanwhile, natural disasters and epidemics occur abnormally, greatly affecting many borrowers and the results of policy credit activities.

In 2025, the Branch will focus on completing and exceeding the planned capital target, ensuring good implementation of policy credit programs serving 3 national target programs, including: National Target Program for Sustainable Poverty Reduction, National Target Program for New Rural Development and National Target Program for Ethnic Minority Development in 2025 and the following years. At the same time, complete the target of receiving entrusted capital from the local budget in 2025 according to the Central target of 100 billion VND. Complete 100% of the planned target of outstanding loans of credit programs, striving to achieve a minimum outstanding loan growth rate of 7%. The bad debt ratio will not exceed the rate in 2024 (0.1%).

To achieve the set goals, the Vietnam Bank for Social Policies proposes the following solutions: Advising local Party committees and authorities at all levels to gradually and effectively implement Directive No. 39-CT/TW dated October 30, 2024 of the Secretariat of the 13th Party Central Committee on improving the effectiveness of social policy credit in the new period; Decision No. 05/QD-TTg dated January 4, 2023 of the Prime Minister on approving the Development Strategy of the Vietnam Bank for Social Policies to 2030.

At the same time, maximize capital resources to meet the loan needs of poor households and other policy beneficiaries. Direct grassroots units to do a good job of disbursement and debt collection: actively advise the Board of Directors at all levels on allocating capital plans and closely coordinate with entrusted organizations, Savings and Loan Groups to organize timely disbursement of credit programs to the right subjects. Carry out transaction activities well at Commune Transaction Points, continue to improve the quality and efficiency of commune transaction activities; strengthen supervision to ensure procedures, safety, and quality of service to the people...