Lending to support job creation, job maintenance and expansion is one of the preferential credit programs that the Social Policy Bank system in the province has effectively implemented in recent years. Through capital sources, it has contributed to shifting the occupational structure and labor structure from purely agricultural production to production and business sectors with higher income levels. The capital sources have contributed to supporting many workers, families and production and business establishments to create stable jobs, attracting a part of idle labor in the locality, aiming at the goal of sustainable poverty reduction and striving to become rich.
Staff of the Lam Thao District Social Policy Bank Transaction Office checked the effectiveness of the job creation loan for Mr. Le Van Phong's family in Zone 2, Cao Xa Commune.
Efficiency from capital in hand
The Employment Loan Program (EPL) is one of the policy credit programs that combines many different sources of capital for lending such as: Capital from the National Employment Fund, mobilized capital from the Bank for Social Policies, and locally entrusted capital sources that have supplemented the capital source as a basis for the Bank for Social Policies in the area to effectively and qualitatively implement the policy credit program. Through the above capital sources, the Provincial Branch of the Bank for Social Policies has supported loans for disadvantaged workers, ethnic minorities, and workers in rural areas to have the opportunity to access preferential credit sources to expand and develop production and business activities, contributing to creating jobs for themselves, their families, and the community.
Actively implementing the GQVL loan program, by the end of October 2024, more than 1,000 workers in Lam Thao district had been supported to create jobs, maintain and expand jobs from this preferential capital source. Many workers not only overcame difficulties but also expanded production, rising to become well-off households in the locality. Before deciding to switch to egg-laying chicken farming, Mr. Le Van Phong in Zone 2, Cao Xa Commune, Lam Thao District had worked for many years in the marketing of consumer goods. Unstable income and often having to work away from home made his family's life difficult. In 2020, Mr. Phong discussed with his wife about renting 5% of the commune's land area to build a coop for egg-laying chickens. However, investing in building a coop with an area of 600m2 required a large amount of money, while the couple's savings were not enough. Realizing that his family's need for capital to develop the economy was urgent, the local government created conditions for Mr. Phong to borrow 50 million VND from the GQVL loan capital of the CSXH Bank Transaction Office entrusted through the Youth Union. The capital in hand has helped his family's livestock farming business to develop more and more. Not long after, Mr. Phong fully repaid both principal and interest to the bank. In November 2023, he and his wife continued to borrow an additional 200 million VND from this capital source to expand the scale of the livestock farm to 1,200 square meters. Mr. Phong shared: "Wherever the loan is, my wife and I invest and make a profit. Up to now, the family's livestock farm with a scale of 12,000 egg-laying chickens brings in a profit of 350-400 million VND per year. At this rate, my family will try to repay the loan to the bank soon."
After receiving a loan from the GQVL, Mr. Ban Van Ty's family in Du area, Xuan Son commune, Tan Son district invested in raising buffaloes, thereby escaping poverty.
Recently, the family of Mr. Ban Van Ty, a Dao ethnic group in Du area, Xuan Son commune, Tan Son district, has been removed from the list of near-poor households of the commune. Sharing his joy with us, Mr. Ty said: “Life in the mountainous area depends on raising livestock and growing crops all year round. With a family of 4 but little land, my wife and I only know how to raise a few ducks and pigs to improve our daily life. When the officials promoted and created favorable conditions for loans with preferential interest rates for near-poor households, I boldly raised buffaloes for breeding. By 2023, I was able to borrow an additional 100 million VND from the GQVL capital, and I bought 5 more buffaloes. All the buffaloes are healthy, my wife and I are no longer worried about unemployment, but are now determined to work hard to pay off debts and send our children to school.”
These are just two of many production development projects that have been effective after being facilitated to borrow capital from the GQVL fund, bringing stable income to families. In order to ensure that the loans are effective, in accordance with the regulations and objectives of the lending program, every year, the functional departments of the province including: Department of Labor, Invalids and Social Affairs, Department of Finance, Department of Planning and Investment, Provincial Branch of the Bank for Social Policies and localities coordinate with political and social organizations at all levels to develop plans, deploy loans and supervise the implementation of loan projects.
By the end of October 2024, the total GQVL loan turnover in the province reached over 146 billion VND, lending to 2,326 customers. Thereby, creating jobs for 2,422 workers, including nearly 1,300 female workers and 86 ethnic minority workers. The lending projects mainly serve the needs of career conversion, developing key agricultural economy, small-scale industry, mechanics, carpentry, weaving, livestock, poultry and aquaculture. The total outstanding loan balance of the GQVL loan program to date has reached nearly 739 billion VND, an increase of over 48 billion VND compared to the end of 2023. There are currently 12,379 customers with outstanding loans.
Removing difficulties
The loan program to support job creation, job maintenance and expansion has contributed to supporting workers and production and business establishments to increase income, opening up economic development models in localities, providing jobs for a part of unemployed and underemployed workers, contributing to poverty reduction. After Decree 61/2015/ND-CP and Decree 74/2019/ND-CP of the Government were issued, it created conditions and opened up more opportunities for policy beneficiaries to borrow capital to create jobs, maintain and expand jobs, especially for workers in localities building new rural areas and urban areas.
GQVL loan projects in Cam Khe district are mainly invested in aquaculture, livestock and poultry farming, bringing stable income.
However, the implementation of this lending program is currently facing some difficulties: The current lending capital is not enough to meet the needs of the people; the annual additional capital from the National Employment Fund is still low and the capital entrusted to localities to supplement loans is still limited; the capital is mainly mobilized by the Social Policy Bank. Currently, the proportion of GQVL lending capital in the total lending capital for credit programs in the area is still modest, accounting for only over 11.6% of the total lending capital of the Provincial Social Policy Bank Branch. Therefore, this capital source is currently not meeting the needs of workers, especially for production and business establishments and enterprises.
Although located in a mountainous area with many difficulties, in recent times, the Transaction Office of the Social Policy Bank of Tan Son district has actively implemented the GQVL loan program. In the first 10 months of 2024, the Transaction Office disbursed over 4.5 billion VND in loans, creating jobs for 62 workers. As of October 31, the total outstanding loan balance of the GQVL loan program reached nearly 34 billion VND with 446 outstanding customers. Thanks to the loan capital from this credit program, it has contributed to creating jobs, maintaining and expanding jobs for the idle labor force in the communes of Long Coc, Minh Dai, Van Luong, Xuan Dai, etc.
Comrade Tang Tien Sy - Director of the Transaction Office shared: "The biggest difficulty for the unit when implementing GQVL loans is that the allocated capital increases annually but the demand for job creation of workers and production and business establishments in the area is very large. The outstanding balance of this loan capital accounts for a low proportion, only reaching 5.29% of the total outstanding balance of credit programs being implemented in the district."
While the capital for implementing the program is still limited, a part of the population is still affected by the COVID-19 pandemic and the recent storm No. 3, the Provincial Branch of the Social Policy Bank has regularly coordinated with entrusted socio-political organizations to strengthen the dissemination of the Party and State's policies to the people. The Bank also coordinates to guide lending to the right subjects, propagates borrowers to use loans for the right purposes and manages and supervises the implementation of policies to maximize the effectiveness of loan capital; integrates capital credit activities with agricultural and industrial promotion programs, and technology transfer to improve the efficiency of capital use for production and business development projects, and create jobs for workers.
In order to simultaneously implement 20 policy credit programs, the Provincial Branch of the Bank for Social Policies continues to implement solutions to promote timely disbursement of GQVL loans, ensuring preferential capital reaches the right beneficiaries for investment in production and business, solving the need for job creation, maintaining and expanding jobs, contributing to supporting people to overcome difficulties, restore and develop the economy after being negatively impacted by the COVID-19 pandemic and floods caused by storm No. 3.
To further promote the effectiveness of preferential capital for GQVL loans as well as other policy credit programs, comrade Nguyen Thanh Tinh - Deputy Director of the Provincial Bank for Social Policies Branch said: "In the coming time, the Provincial Bank for Social Policies Branch recommends that Party committees and authorities at all levels continue to pay attention to directing and creating favorable conditions for policy credit activities in the area. Every year, priority is given to allocating more capital from the local budget to the Bank for Social Policies to supplement capital for lending to poor households and other policy beneficiaries, including the GQVL loan program. From there, this capital truly becomes a "lever" contributing to the successful implementation of national target programs in the locality".
Hong Nhung
Source: https://baophutho.vn/don-bay-ho-tro-giai-quyet-viec-lam-223221.htm
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