In the process of socio-economic development, the city's Party Committee and government identified one of the important solutions to implement the target program of sustainable poverty reduction, ensuring social security, building new rural areas and socio-economic development as effectively using social policy credit resources through the Social Policy Bank (SPB) system.
In practice, after nearly 30 years of becoming an administrative unit directly under the Central Government, Da Nang has made rapid development steps, gradually affirming its position as a modern and civilized urban area. The city has an area of 1,285 km2 (including 06 districts: Hai Chau, Cam Le, Thanh Khe, Lien Chieu, Ngu Hanh Son, Son Tra; 02 districts: Hoa Vang district and Hoang Sa island district). The whole city has over 300 thousand households with a population of over 1,195 thousand people.
Over the past years, the City Party Committee has paid attention to leading and directing the concretization of Directive No. 40-CT/TW and Conclusion No. 06-KL/TW dated June 10, 2021 of the Secretariat on continuing to implement Directive No. 40-CT/TW (hereinafter referred to as Conclusion No. 06-KL/TW). The City Government has paid increasing attention to both policies and resources to create jobs, increase income, ensure social security, and contribute to improving the material and spiritual life of the poor and other policy beneficiaries of the city.
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| Trading session at the commune-level transaction point in Da Nang City (Photo: Cong Thai) |
Implementing Directive 40 in the spirit of "Correct perception, correct action"
The report of the Da Nang City Party Committee summarizing 10 years of implementing Directive No. 40-CT/TW dated November 22, 2014 of the Central Party Secretariat on policy credit clearly stated that the entrusted socio-political organizations have paid attention to coordinating in implementing social policy credit activities, directing the grassroots level to closely and synchronously coordinate with the Vietnam Bank for Social Policies and local authorities in fully implementing the entrusted contents; carrying out the work of consolidating and improving the credit quality and the quality of operations of the Savings and Loan Groups (TK&VV); focusing on guiding the assessment of loan subjects according to regulations; urging the collection of due debts and overdue debts; strengthening inspection and supervision, guiding borrowers to use capital effectively; propagating the Party and Government's policies and guidelines on social policy credit... Integrating with the programs and projects of the associations; Do a good job of consulting, guiding the construction and replication of typical production and business models, helping each other to escape poverty and get rich. The transaction office of the People's Credit Fund of Hoa Vang district proactively coordinates with associations and organizations to effectively implement policy credit activities in the area, contributing to building Hoa Vang district to meet new rural standards.
The quality of entrusted contents is increasingly improved. The VBSP and socio-political organizations receiving the trust organize quarterly meetings at the city, district and commune levels and monthly at the ward and commune levels. The VBSP has coordinated with the People's Committees and socio-political organizations at all levels to organize training for 100% of poverty reduction cadres, mass organizations at all levels and management boards of savings and credit groups; regularly report to local Party committees and authorities on social policy credit work in the area. As of June 30, 2024, the total outstanding entrusted debt reached VND 4,940.66 billion, accounting for 98.58% of the total outstanding debt. Of which: The Women's Union manages outstanding debt of 1,706.76 billion VND, the Farmers' Association manages outstanding debt of 1,097.56 billion VND, the Veterans' Association manages outstanding debt of 1,166.89 billion VND, and the Youth Union manages outstanding debt of 969.43 billion VND. The quality of operations of the Savings and Credit Groups has been strengthened and improved; the whole city has 1,913 Savings and Credit Groups, of which 1,910 Savings and Credit Groups are good and fair. Capital mobilized through Savings and Credit Groups is 273 billion VND.
Implementing the policy of mobilizing resources for social policy credit, all levels and sectors have concentrated social policy credit capital sources originating from the state budget into one focal point, the Vietnam Bank for Social Policies; increased the addition of local capital sources (city and district levels) to entrust loans to the poor and other policy beneficiaries in the area.
According to preliminary statistics, by June 30, 2024, the total capital reached 5,022.72 billion VND, an increase of 3,802.77 billion VND (311.77%) compared to 2014, of which: Balanced capital from the Central Government reached 2,817.88 billion VND, accounting for 56% of total capital, an increase of 1,688.77 billion VND (149.57%) compared to 2014( ); capital entrusted for investment at the local level reached 2,204.56 billion VND, accounting for 44%, an increase of 2,113.95 billion VND (2,332.87%) compared to 2014.
People's Committees at all levels have prioritized balancing state budget capital to implement social policy credit programs. The local budget source entrusted to the Vietnam Bank for Social Policies from the date of Directive No. 40-CT/TW to June 30, 2024 reached VND 2,113.95 billion (of which: the city increased VND 2,102.6 billion, Hoa Vang district increased VND 11.3 billion), bringing the total capital source entrusted by the locality to June 30, 2024 to VND 2,204.56 billion.
Mobilizing contributions from social organizations, enterprises and individuals to supplement capital for social policy credit is mainly through the form of savings deposits of organizations and individuals. The balance of mobilized deposits of organizations and individuals as of June 30, 2024 reached VND 202.25 billion, an increase of VND 194.78 billion compared to 2014. In order to create conditions for members of the Savings and Credit Groups to practice savings and gradually access banking services, in recent times, the Social Policy Bank has promoted the mobilization of deposits through the Savings and Credit Groups. As of June 30, 2024, it reached VND 273.14 billion, an increase of VND 186.33 billion (an increase of 214.64%) compared to 2014.
Currently, the city is implementing 26 credit programs (14 central policy credit programs and 12 local policy credit programs). Total lending turnover from the beginning of 2014 to present has reached 11,090.55 billion VND, with 247,164 poor households, near-poor households and other policy beneficiaries receiving loans; debt collection turnover has reached 7,718.04 billion VND. By June 30, 2024, the total outstanding debt of policy credit programs reached 5,011.73 billion VND, an increase of 3,794.70 billion VND compared to 2014, with 85,919 poor households and policy beneficiaries still having outstanding debt, the average outstanding debt per household reached 58.33 million VND, an increase of 43.18 million VND compared to 2014; The poor and other policy beneficiaries who have needs and meet the conditions can access products and services provided by the VBSP.
After 10 years of implementing Directive No. 40-CT/TW, it can be affirmed that this is a correct policy of the Party and State, meeting the aspirations of the People and increasingly entering life, strengthening the People's trust in the Party and State, contributing to achieving the goal of rapid and sustainable poverty reduction; building new rural areas; ensuring social security; political stability, national security and defense; narrowing the gap between rich and poor. The results achieved in the past time have affirmed the role of social policy credit in the socio-economic development of the city, being a fundamental and long-term tool and solution for the locality to successfully implement the goals and plans on poverty reduction, job creation, building new rural areas, ensuring social security, economic recovery and development, especially in the context of the COVID-19 pandemic. The achievements of policy credit can be considered a "bright spot" and one of the "pillars" in the system of poverty reduction policies of Vietnam, affirming the correctness and effectiveness in maintaining and developing the organizational model and credit management method with superiority and unique characteristics of the VBSP different from local credit institutions.
Social policy credit implemented through the Vietnam Bank for Social Policies has promoted the strength of the entire political system. Social policy credit has contributed to limiting usury and “black credit”, especially in rural areas. It is an economic tool to carry out the State’s regulatory role in the socialist-oriented market economy for vulnerable groups; it is one of the economic levers to stimulate the poor and other social policy subjects to have conditions to develop production and improve their lives.
Statistics from the Da Nang City Social Policy Bank clearly show that in the period of 2014-2024, the Social Policy Bank disbursed VND 11,090.55 billion and collected VND 7,178.04 billion; policy credit activities of the Social Policy Bank have helped 247,164 poor households and other policy beneficiaries borrow capital from the Social Policy Bank. Thanks to the policy credit capital, it has contributed to completing the Poverty Reduction Project for the period of 2016-2020 2 years ahead of schedule, with 20,293 households escaping poverty (including 6,514 poor households according to the Central standards); creating jobs, maintaining and expanding jobs for 140,400 workers; 10,946 students received loans to cover study expenses; loans to build, upgrade and renovate 49,795 new clean water works and environmental sanitation works; help people in Hoa Vang district have capital to build clean water supply systems, drainage systems and indoor sanitation systems to ensure health safety and prevent rural environmental pollution, contributing to the implementation of the new rural program in the district...
5 lessons learned from a decade of implementing Directive 40
The Da Nang City Party Committee in general and the agencies directly involved in implementing Directive 40 on policy credit in particular all agree that after a decade of implementing the Directive, the locality has drawn 5 important lessons, namely:
Firstly, enhance the role and responsibility of Party committees at all levels, the government, the Vietnam Fatherland Front and socio-political organizations for social policy credit: The Party leads - The government operates - The Vietnam Fatherland Front advises - The Vietnam Fatherland Front Committee supervises - Socio-political organizations coordinate, playing an important role in implementing social policy credit. Where the leadership role and attention of Party committees at all levels and local governments are clearly demonstrated, there will be improved credit quality and scale, more beneficiaries will have access to policy credit, and conditions for socio-economic development, sustainable poverty reduction, new rural construction, and ensuring social security for the people.
Second, perfecting legal documents, mechanisms and policies related to social policy credit: Focusing on reviewing, amending, supplementing and perfecting legal documents, promptly promulgating mechanisms and policies related to social policy credit to mobilize, manage and effectively use social policy credit resources. Mechanisms and policies have been studied, promulgated, adjusted promptly and more suitable to reality by the Central and local governments. Policy credit capital has been invested to the right beneficiaries.
Third, arrange and mobilize resources to implement social policy credit: The central and local governments must always pay attention to creating capital sources to effectively organize and implement social policy credit programs. Increasing resources for social policy credit means increasing capital sources for the poor and policy beneficiaries so that they can access and become familiar with financial services, create jobs, increase income and improve their lives.
Fourth, improving the capacity and operational efficiency of the VBSP in the area: Since the issuance of Directive No. 40-CT/TW and Conclusion No. 06-KL/TW, the VBSP has had better conditions to organize the political tasks assigned by the Party and the State; the activities of the VBSP have been constantly consolidated and improved, ensuring the stability and efficiency of the apparatus, and increasingly effectively implementing policy credit programs. Periodically organizing preliminary and final summaries to draw experience, promptly praising and rewarding collectives and individuals who have contributed to social policy credit activities.
Fifth, the creative implementation, construction and successful organization of the organization model and policy credit operation method suitable to actual conditions, thereby mobilizing the strength of socio-political organizations and the whole society for the poor and other policy subjects. The model of organization of activities, administration, management, operations; the method of direct lending management with the delegation of some work contents through socio-political organizations, building a network of Savings and Credit Groups, and commune transaction points is to effectively carry out the socialization of banking, mobilize the strength of the entire political system to participate, bring the activities of the VBSP closer to the people, and reduce time and costs. The relationship between the People's Credit Fund, local authorities, the Vietnam Fatherland Front, and socio-political organizations has been formed and constantly nurtured, working responsibly, wholeheartedly, wholeheartedly, sharing, with a common goal for the happiness of the poor, for social security, and determined to leave no one behind.
The representative of the Da Nang City Party Committee affirmed that in the coming time, the City Party Committee and the entire political system of the City, with the core being the Board of Directors of the People's Credit Fund at all levels of the City, will continue to effectively implement Directive 40 on policy credit. Accordingly, the Da Nang City Party Committee requires continuing to enhance the role and responsibility of Party committees at all levels, the government, the Vietnam Fatherland Front and socio-political organizations regarding social policy credit; Completing legal documents, mechanisms and policies related to social policy credit in accordance with reality; Arranging and mobilizing resources to implement social policy credit; Improving the capacity and operational efficiency of the People's Credit Fund in the area./.
Source: https://thoibaonganhang.vn/da-nang-phat-huy-hieu-qua-nguon-luc-tin-dung-chinh-sach-xa-hoi-153743.html
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