Change thanks to policy credit capital 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 families develop economically.
Policy capital "supports" poor households
One day at the end of June, we visited Chau Khe commune (Con Cuong) to attend the launching ceremony of a sustainable savings and loan group model associated with community activities in Bung Xat village. This is a commune in the buffer zone of Pu Mat National Park.
Ms. Lo Thi Linh - Head of the savings and loan group of Bung Xat village said: The loan group of the village has 45 members, the current outstanding debt is more than 3.4 billion VND. Thanks to attracting members to participate regularly, the collection of interest and mobilization of savings is convenient, the amount of savings has increased compared to before, and interest is collected quickly. The current savings balance is more than 98 million VND and there is no bad debt.
Ms. Linh said that the group members are currently participating in regular monthly activities. At the meetings, the group members exchange experiences in borrowing capital, investing in production, and raising funds to support each other in life. The group members also exchange and learn from experiences of effective economic models. Thanks to that, Bung Xat village has reduced from 35 poor households (in 2019) to 18 households now.
Chairman of Chau Khe Commune People's Committee - Mr. Kha Van Thuong also affirmed that through the activities of the loan group, it has helped the members of the group to connect and operate more effectively. Combining the activities of the loan group with community activities helps the members to be excited and participate actively. Especially, integrating the work of borrowing and saving with the activities of folk song clubs, young family clubs, etc., often attracts many participants.
Currently, in Con Cuong district, there are many effective production and business models thanks to loans from the Policy Bank. One example is the case of Mr. Lo Van Mon in Lam Khe village, Chi Khe commune. After returning to avoid the Covid-19 epidemic, thanks to the Policy Bank's support of 50 million VND, he was able to continue his shoemaking career and invest more in livestock and forestation. After 3 years of fluctuations due to the epidemic, his life now has income and savings.
The couple's house is located in a 5-hectare green acacia garden. While visiting the factory and acacia garden, Mr. Lo Van Mon excitedly said that in addition to planting forests and raising cows, his shoe factory is creating jobs for 7-10 local workers. Although the revenue is not high yet, it can be affirmed that after a period of working far away, he and his wife are now assured of producing in their hometown without having to worry about going far away to make a living. Currently, there are many shoe orders, we hope to borrow more preferential capital to invest in expanding production, and at the same time buy more cows to raise...
Many localities today have witnessed the change in the appearance of the new countryside; wide roads, spacious houses. The change in the new pace of life is mentioned by local people through economic development models from loans from the Social Policy Bank.
In Dien Chau district, we visited Tran Dinh Quyen's family in Dong Ha hamlet, Dien Van commune. At noon, his wife was busy with wholesale grocery sales, while Quyen took care of deer farming and shrimp farming. In 2015, with a loan of 50 million VND approved from the loan program for production and business households in difficult areas, Quyen started building a barn and bought a pair of breeding deer to raise. Thanks to proper breeding techniques, the deer grew quickly and reproduced, increasing in number. At one point, the deer barn had up to 16 deer.
In addition to selling deer antlers, his family has also become a trusted supplier of deer breeds to the people. The family continues to use the profits from raising deer to invest in white-leg shrimp farming.
Mr. Quyen said that with the policy of encouraging the conversion of ineffective agricultural land into aquaculture, he has converted it to shrimp farming. Currently, each crop, he sells 2.5 - 3 tons of commercial shrimp. Raising deer and shrimp brings his family more than 200 million VND/year, enough to send his children to school.
Mr. Nguyen Van Tuan - Director of the Social Policy Bank of Dien Chau district said with an excited face, that Dien Van is a coastal commune in a difficult area, in the past people mainly only looked at fish, salt grains... However, in Dien Van commune today, the rural appearance has changed; along the Bung river, many multi-storey houses are close together. Directive No. 40 is considered a new breeze contributing significantly to the construction of new rural areas, changing the appearance of Dien Chau district.
Party committees and authorities work together
As a province with a large population, with over 84% of the population in rural areas, over 15% of ethnic minorities, the poverty reduction effort of Nghe An always poses many challenges. After 10 years of implementing Directive No. 40-CT/TW and nearly 4 years of implementing Conclusion No. 06-KL/TW, it shows that these major policies of the Secretariat have really entered life, strongly and positively affecting policy credit activities. Local Party committees and authorities have considered the leadership and direction of policy credit activities as one of the top tasks in regular programs and plans. Therefore, policy credit activities have had strong changes, with great influence and high socialization.
Mr. Ha Xuan Quang - Secretary of Dien Chau District Party Committee said: Dien Chau is a coastal district with a large population, high demand for loans for production and business development, especially credit capital from the Social Policy Bank. To effectively implement Directive No. 40 and Directive No. 29, we focus on the role and responsibility of local leaders in grassroots credit work, creating favorable conditions for the poor and policy beneficiaries to access capital and use loans effectively. Mobilizing resources for social policy credit is also a task of local concern. Up to now, Dien Chau Social Policy Bank is the transaction office with the largest outstanding debt in the province, the outstanding policy capital in the area is nearly 1,000 billion VND, of which more than 7 billion VND is transferred from the district budget.
Not only in Dien Chau district, many localities in Nghe An have had strong changes thanks to loans from the Bank for Social Policies and the proactive participation of local authorities at all levels. Since the implementation of Directive 40 up to now (2014 - 2024), the total loan turnover has reached 27,706 billion VND. By June 30, 2024, the total outstanding policy credit balance 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 said: 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 political and social organizations, has been mobilized to participate in implementing the poverty reduction program, taking care of the lives of the poor and policy beneficiaries; guiding and creating conditions for them to know how to do business, gradually changing their awareness, and rising up to escape poverty sustainably.
Preferential loans through banks have provided capital to 742,060 poor households and policy beneficiaries to overcome the shortage of capital, lack of jobs, and prevent usury in rural areas. Thereby, positively impacting the improvement of cultural life, contributing to socio-economic development, stabilizing social order and safety, and strengthening people's trust in the Party and State...
The results achieved cannot be mentioned without mentioning the role and participation of authorities at all levels in policy capital sources. Comrade Bui Thanh An - Vice Chairman of the Provincial People's Committee, Head of the Provincial Social Policy Bank Representative Board said: In the process of implementing Directive 40, the Provincial Party Committee, People's Council, and People's Committee always pay attention to directing all levels and sectors to proactively coordinate well with the Social Policy Bank to concentrate resources, increase investment in lending to the poor and other policy beneficiaries while focusing on efficiency to contribute to the good implementation of the poverty reduction target, ensuring social security, economic development and new rural construction in the area.
To date, the total capital and outstanding debt has reached over 13 trillion VND, of which the local budget 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 local budget entrusted through the Social Policy Bank for lending of 400 billion VND.
In order for Directive 40 to continue to be effective, in the coming time, Nghe An province will direct all levels and sectors in the area to further strengthen the leadership of Party committees, authorities, and the Board of Directors of the Social Policy Bank at all levels to enhance the role of the Fatherland Front and socio-political organizations in policy credit. Mobilize maximum resources for social policy credit, pay attention to arranging capital from local budgets for entrusted lending; concentrate policy credit capital sources originating from the State budget on one focal point, the Social Policy Bank, to manage lending to ensure efficiency...
Vice Chairman of the Provincial People's Committee Bui Thanh An