Policy credit helps improve the lives of mountainous people in Nghe An

Thousands of families get loans to repair dilapidated houses

The preferential credit policy to implement the National Target Program on Socio-Economic Development in Ethnic Minority and Mountainous Areas for the period 2021-2030, Phase I from 2021-2025 (referred to as the Program) is one of five lending programs under Resolution 11/NQ-CP of the Government. The capital allocated to Nghe An to implement the preferential credit program under Decree 28/2022/ND-CP in 2022 is 150 billion VND.

Currently, the Vietnam Bank for Social Policies (VBSP) Nghe An branch is actively coordinating with local authorities and relevant departments and branches to implement this credit policy.

Staff of the Vietnam Bank for Social Policies inspect the loan model for disadvantaged ethnic minority people in mountainous areas. Photo: Thu Huyen

In 2022, the Provincial Social Policy Bank advised the Provincial People's Committee to issue Document No. 763/HD-UBND dated November 2, 2022, directing the People's Committees of districts to approve the list of beneficiaries according to Decree No. 28/2022/ND-CP of the Government. However, in the first months of 2022, the bank could not implement it because it did not have a list of beneficiaries approved by competent authorities to serve as a basis for lending. At the end of 2022, a number of localities had made lists of beneficiaries, thanks to which the Provincial Social Policy Bank had a list approved by the People's Committees of districts.

As of January 31, 2023, outstanding loans under Decree No. 28/2022/ND-CP were VND 38 billion; some units had high loan turnover: Ky Son VND 10.9 billion; Quy Chau VND 10.3 billion; Con Cuong VND 9.2 billion; Tuong Duong VND 5.2 billion... completing 25.3% of the plan.

Staff of the Social Policy Bank of Quy Chau district visited the family of Ms. Vi Thi Mai in Ke Ninh village, Chau Hanh commune. Photo: Thu Huyen

In Quy Chau district, implementing the National Target Program on socio-economic development in ethnic minority and mountainous areas, the District Social Policy Bank advised the District People's Committee to issue Official Dispatch No. 542/UBND-DT dated May 17, 2022 of the Quy Chau District People's Committee on reviewing the list of beneficiaries of preferential credit policies.

Up to now, the Social Policy Bank of Quy Chau district has carried out 10 disbursement rounds, with a total disbursement capital of more than 10.3 billion VND to support poor households in housing, the total number of households receiving loans from preferential capital sources according to Decree 28 is 258 households, with a maximum loan of 40 million VND/household. Of which, there are 64 cases of building new houses for living, 194 cases of repairing dilapidated houses to ensure solid housing for people. Specifically: Chau Hanh commune 74 households, Chau Binh commune 50 households, Chau Binh commune 32 households, Chau Hoan commune 20 households, Chau Hoi commune 16 households, Chau Nga commune 18 households, Chau Phong commune 14 households, Chau Thang commune 2 households, Chau Thuan commune 24 households, Dien Lam commune 8 households.

Ms. Lu Thi Hien's family in the new hamlet, Chau Phong commune is one of the poor households in the commune. Their house is temporary and they have borrowed preferential loans to build a new house. Photo: Thu Huyen

A typical example is the household of Ms. Ha Thi Thuy (born in 1966) in Quynh 2, Chau Binh commune, a family of 3, mother and children, the eldest son is a hired worker, the youngest daughter is in secondary school, is a poor household in the commune, the house has degraded, now she has borrowed capital to repair the house. Mr. Lo Van Chau's household (born in 1964) in the new hamlet, Chau Phong commune has 6 people, life mainly depends on agricultural production, is a long-term poor household in Chau Phong commune, the house has degraded and cannot be lived in, so it must be demolished to build a new house. Or Ms. Lu Thi Hien (born in 1987) in the new hamlet, Chau Phong commune, the family has 3 people, 2 husband and wife and 1 young child. Ms. Hien and her husband produce agriculture and are among the poor households in the commune, the temporary house has been demolished to build a new house.

Mr. Dang Hoai Nam - Director of the Social Policy Bank of Quy Chau district said: In the coming time, we plan to continue lending according to Decree 28 with the registered capital according to the plan at the beginning of the year of nearly 12 billion VND, with about 300 poor households receiving loans.

Need to focus on disbursement

The current difficulty is that although the capital source for disbursement according to Decree No. 28/2022/ND-CP of the Provincial Social Policy Bank is ready, the list of approved beneficiaries according to Decree No. 28/2022/ND-CP in 2023 from the People's Committees of the districts is not yet available, so the Provincial Social Policy Bank has no basis for disbursement. Mr. Nguyen Van Vinh - Deputy Director of the Provincial Social Policy Bank said, at the meetings of the bank's representative board, we have raised this issue, we hope that localities will urgently review and approve the list of beneficiaries to carry out disbursement, in order to help poor households, near-poor households, and ethnic minority households to soon borrow capital from the preferential credit program according to Decree 28/2022/ND-CP.

Con Cuong Social Policy Bank disburses in Thach Ngan commune. Photo: Thu Huyen

Mr. Luong Van Khanh - Deputy Head of the Provincial Ethnic Minorities Committee said: The program implementation is delayed partly because the program has many new contents, and partly because the document guiding the norms from the Central Government is delayed. In the coming time, with its responsibility, the Provincial Ethnic Minorities Committee will actively monitor and inspect the implementation of the program's contents. The first step is to urge localities to promptly review and approve the list of beneficiaries so that the Nghe An Social Policy Bank can disburse loans.

Previously, on April 26, 2022, Deputy Prime Minister Le Minh Khai signed and issued Decree No. 28/2022/ND-CP on preferential credit policy to implement the National Target Program on socio-economic development in ethnic minority and mountainous areas for the period 2021-2030.

Decree No. 28/2022/ND-CP specifically regulates loans to support residential land and housing; loans to support the development of precious medicinal plant growing areas; loans to support production land, job conversion and loans to support production development according to value chains.

People are interested in preferential credit policies for ethnic minorities and mountainous areas. Photo: Thu Huyen

Accordingly, the subjects of loans for residential land and housing support include: Poor ethnic minority households; poor Kinh households legally residing in extremely difficult communes and extremely difficult villages in ethnic minority and mountainous areas, borrowing capital to cover costs for residential land, costs for new construction or repair and renovation of housing. The loan amount is agreed upon by the Social Policy Bank and the borrower but does not exceed 50 million VND/household for loans to support residential land, 40 million VND/household for loans to support housing. The loan term is agreed upon by the Social Policy Bank and the borrower, but is a maximum of 15 years. In the first 5 years, the customer does not have to repay the principal. The loan interest rate is 3%/year.

Regarding investment loans and support for the development of precious medicinal herb growing areas, Decree No. 28 stipulates that the loan subjects are enterprises, cooperatives, cooperative unions, households and production and business organizations (production and business establishments) operating in particularly difficult areas in ethnic minority and mountainous areas, employing 50% or more of the total workforce as ethnic minorities, participating in the Project for the development of precious medicinal herb growing areas (Precious medicinal herb growing area project), the Project for the center for propagation, conservation and development of high-tech medicinal herbs (Project for propagation center) approved by competent authorities.

The total loan amount shall not exceed 45% of the total project investment and shall not exceed VND 96 billion for the precious medicinal herb growing area project, and shall not exceed VND 92 billion for the breeding center project.