Summary of 10 years of implementing Directive 40 on social policy credit

Comrades: Pham Minh Chinh - Member of the Politburo, Prime Minister; Nguyen Thi Hong - Member of the Party Central Committee, Governor of the State Bank of Vietnam, Chairwoman of the Board of Directors of the Vietnam Bank for Social Policies; Ha Thi Nga - Member of the Party Central Committee, Chairwoman of the Vietnam Women's Union; Duong Quyet Thang - Member of the Board of Directors of the Vietnam Bank for Social Policies, General Director of the Vietnam Bank for Social Policies chaired the conference at the Hanoi bridge. Also attending were leaders of central departments, ministries, branches and localities at the bridges.

Comrade Bui Thanh An - Member of the Provincial Party Standing Committee, Vice Chairman of the Provincial People's Committee chaired at Nghe An bridge. Also attending were members of the Board of Directors of the Social Policy Bank, relevant organizations and unions.

Policy credit has positive impacts on socio-economy

To promote the role and improve the effectiveness of social policy credit, on November 22, 2014, the Central Party Secretariat issued Directive No. 40-CT/TU on strengthening the Party's leadership over social policy credit.

Over the past 10 years, the source of social policy credit has grown remarkably, with a stable growth rate over the years, each year higher than the previous year. The total source has so far reached 373,010 billion VND, an increase of 238,338 billion VND. The highlight of the past 10 years is that 100% of provincial and district-level localities nationwide have paid attention to balancing and allocating budgets entrusted through the Vietnam Bank for Social Policies to supplement loan capital. Up to now, the source of entrusted capital has reached 47,350 billion VND, accounting for 12.7% of the total source of capital, an increase of 43,542 billion VND compared to before Directive No. 40-CT/TW.

Policy credit capital has been invested in 100% of communes, wards and towns nationwide, with total outstanding debt to date reaching VND 350,822 billion, an increase of VND 221,365 billion compared to before Directive No. 40-CT/TW, with more than 6.8 million poor households and policy beneficiaries still in debt. Over the past 10 years, policy credit capital has supported more than 3.1 million households to overcome the poverty threshold, created jobs for more than 4.2 million workers (of which more than 51,000 workers went to work abroad for a limited period), supported more than 610,000 students to borrow money to study, built more than nearly 13.3 million clean water and rural environmental sanitation works, more than 189,000 houses for the poor and social housing, etc.

In Nghe An, by June 30, 2024, the total capital reached over VND 13,374 billion, an increase of VND 7,132 billion compared to 2014; of which, the capital entrusted at the local level increased 5.5 times compared to 2014. The whole province has 84 district-level associations and 1,726 commune-level associations that are entrusted to lend policy credit capital with the Social Policy Bank at all levels, 100% of villages and hamlets have active savings and loan groups. With this model, the strength of the entire political system has been promoted, becoming a fast, widespread and reliable capital channel to serve the poor and other policy beneficiaries.

Reporting at the conference, General Director of the Vietnam Bank for Social Policies Duong Quyet Thang affirmed: The results of policy credit implementation achieved in the past 10 years, it can be affirmed that Directive No. 40-CT/TW has been effective and truly put into practice; comprehensively and profoundly changing the awareness of all levels, sectors and people about the role and position of social policy credit in effectively implementing key tasks of socio-economic development and national target programs, contributing to the successful implementation of the Resolution of the 13th National Party Congress.

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The Social Policy Bank is the largest microfinance service provider in Vietnam and one of the largest microfinance banks in Asia, one of the few successful and sustainable models in the world. Looking back on the journey of nearly 10 years, under the leadership of the Communist Party of Vietnam and the efforts of the Government, the Social Policy Bank's loans have brought about many positive socio-economic impacts, ensuring the rights and access to finance for people in difficult circumstances in Vietnam. The development journey of the Social Policy Bank brings valuable experiences and lessons to the governments of other developing countries.

World Bank representative assessment

Prioritize budget allocation for the Social Policy Bank

At the conference, presentations from departments, ministries, localities and other components at connecting points across the country continued to affirm the achieved results showing that the organizational model and credit management method of the Vietnam Bank for Social Policies are suitable to the political system and reality of Vietnam, mobilizing the strength of the whole society to care for policy subjects through social policy credit activities.

Speaking at the conference, on behalf of the Government, Prime Minister Pham Minh Chinh acknowledged, commended and highly appreciated the results after 10 years of implementing Directive 40 and Conclusion 06 of the Secretariat. With the results achieved after more than a decade of the entire political system joining hands, social policy credit has become a "bright spot" and a "pillar" in the system of poverty reduction policies, ensuring social security, meeting the aspirations of the people, especially the poor and vulnerable groups in society.

Affirming that the organizational model and credit management method that the Vietnam Bank for Social Policies has implemented over the past 20 years are suitable to the political regime and conditions of Vietnam, the Prime Minister suggested that it is necessary to soon complete the Decree on the organization and operation of the Vietnam Bank for Social Policies to improve the effectiveness and efficiency of operations. Improve the quality of entrustment and delegation activities between the Vietnam Bank for Social Policies and socio-political organizations, the Management Board of Savings and Loan Groups; improve quality and ensure safety at commune transaction points.

Central ministries and branches continue to review and complete regulations to concentrate resources and improve the capital structure for the Social Policy Bank in a stable and sustainable direction. Localities need to continue to pay attention, balance, and prioritize the allocation of local budgets entrusted to the Social Policy Bank, especially capital for loans to create jobs, capital for loans to social housing, etc.

The Social Policy Bank focuses on prioritizing capital for ethnic minorities in mountainous areas, especially difficult areas, border areas, and islands. It is recommended that the Vietnam Fatherland Front at all levels and socio-political organizations continue to do a good job of propaganda, supervision, and social criticism of the implementation of the Party and State's policies and guidelines on poverty reduction, social security, and social policy credit activities.

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With the motto of action "Understanding the people's hearts, serving wholeheartedly", I believe that the Vietnam Bank for Social Policies will promote its tradition, achievements, and experience in implementation, overcome limitations and shortcomings, make more efforts, perform better, year after year better than the previous year, the tasks assigned by the Party, State, and People, affirming its great mission and social responsibility.

Prime Minister Pham Minh Chinh