Over 24.8 million poor and near-poor households receive policy loans

The Vietnam Bank for Social Policies (VBSP) has just announced that after nearly 12 years of operation, the bank has provided capital for over 24.8 million poor households, near-poor households and other policy beneficiaries, helping over 3.2 million poor households overcome the poverty line.

The bank's outstanding credit balance has also increased 18 times, reaching VND126,830 billion (as of October 31, 2014); the average annual growth rate reached 29.4%; with nearly 7 million households still having outstanding loans, an increase of more than 5 million customers compared to the time of establishment. The average outstanding loan per customer increased from VND2.5 million to more than VND18 million.

Thanks to preferential credit sources, many households have escaped poverty and become rich. Photo: Nhan Dan Newspaper

Notably, preferential credit has promoted the contributions of socio-political organizations and strengthened the relationship between villagers and neighbors. Currently, there are nearly 8,000 leaders of state management agencies and socio-political organizations participating in the management of the VBSP. In this model, leaders of management agencies from the central to local levels, coordinate with socio-political organizations to participate in the management and operation of the VBSP.

Recently, the Secretariat issued Directive No. 40-CT/TW on strengthening the Party's leadership over social policy credit. To promote the role and improve the effectiveness of social policy credit, the Secretariat requested to strengthen the leadership and direction of Party committees and authorities at all levels over social policy credit activities. At the same time, enhance the responsibility of the Vietnam Fatherland Front and socio-political organizations in implementing social policy credit.

The Secretariat also requested relevant units to focus resources and improve mechanisms and policies to effectively implement social policy credit. In addition, it is necessary to improve the capacity and operational efficiency of the Vietnam Bank for Social Policies.

The Secretariat's Directive stated that in recent years, social policy credit implemented by the VBSP has been a creative solution, deeply humane and consistent with Vietnam's reality, contributing significantly to the effective implementation of policies, goals and tasks set by the Party and the State on poverty reduction, job creation, human resource development, ensuring social security, political stability and socio-economic development in the direction of socialism. However, the source of social policy credit capital has not been really stable, the structure is not reasonable, has not met actual needs; credit quality is not uniform. Some Party committees and authorities have not really participated in and have not paid due attention to social policy credit activities.

According to Associate Professor, Dr. To Ngoc Hung - Director of the Banking Academy, the VBSP is a unique organizational model, suitable for the geographical, economic and cultural characteristics of Vietnam. Lending to the poor and other policy beneficiaries has effectively exploited and used the combined strength of management agencies as well as individuals with expertise and experience in many fields, while maintaining a streamlined and cost-saving management and operation apparatus./.

According to dangcongsan