Accompanying poor households in Vinh Loc district to develop the economy

Thanks to access and effective use of loans from the Vietnam Bank for Social Policies (VBSP), many poor and near-poor households and other policy beneficiaries in Vinh Loc district have had the conditions to develop production and business, create stable jobs, and gradually escape poverty and become rich in their homeland.

Accompanying poor households in Vinh Loc district to develop the economy Staff of Vinh Loc Social Policy Bank inspect the use of policy loans in Vinh Hung commune.

For many years, the job creation loan source of the VBSP has always accompanied the comprehensive farm economic model of Mr. Trinh Van Quyen's family in Viet Yen village, Vinh Hung commune. Mr. Quyen said: "In the process of production and business, I have borrowed capital from many credit institutions, however, due to high interest rates and difficult economic conditions, the efficiency of loan use is limited. With preferential and more stable interest rates than commercial banks, the preferential loan source of the VBSP has helped my family's economic model to develop more and more with a stable income of hundreds of millions of VND/year".

To improve the quality of policy credit, right from the beginning of the year, Vinh Loc Social Policy Bank has proactively advised the Board of Directors of the District Social Policy Bank to promptly allocate loan capital to communes and towns, not to let capital stagnate; based on the poverty rate and local economic development goals, programs and projects to allocate capital reasonably. In order to transfer policy credit capital to the right subjects; provide maximum support to poor households and other policy subjects, the bank has established transaction points in all communes and towns in the area, publicly posted policies and guidelines on preferential credit programs, lending interest rates; and publicly disclosed the list of borrowers in the area. Along with that, communes and towns also pay attention to and closely direct the management of loan capital, from establishing savings and lending groups to evaluating loans, making lists of borrowers, and building loan profiles. The network of activities of the Vinh Loc Social Policy Bank is deployed to residential areas and residential groups in the area, including those located far from the commune center. With simple loan procedures and timely disbursement, it not only helps people develop the economy, reduce poverty sustainably, and ensure social security, but also helps to push back the "black credit" problem in the district.

By the end of April 2024, the total outstanding balance of policy credit programs in Vinh Loc district reached nearly 395 billion VND with 14 credit programs being implemented; the average outstanding balance reached 64.6 million VND/household. The structure of outstanding balance of credit programs has shifted reasonably, in line with practical operations. In particular, credit serving production and business needs to create livelihoods and jobs, outstanding balance reached nearly 290 billion VND, credit serving life, outstanding balance reached nearly 104 billion VND... Policy credit has promptly met the capital source for poor households, near-poor households and other policy beneficiaries to have capital to invest in production and business, contributing to maintaining jobs and ensuring social security.

Article and photos: Khanh Phuong

Source