Breakthroughs from Directive No. 40-CT/TW (Part 3)

The effectiveness of policy credit brings not only economic value but, more importantly, addresses social issues, gradually improving the lives of a significant portion of the poor and vulnerable. This contributes to strengthening the people's trust in the Party and the State, based on the harmony between the Party's will and the people's aspirations.

The entire political system is involved.

As of September 30, 2024, the total outstanding debt of policy programs in the province reached VND 4,148,650 million, an increase of approximately 155% compared to before the issuance of Directive No. 40. Notably, within this total capital, entrusted funds received locally increased by over 3,213% compared to before the Directive, reaching over VND 407 billion. This impressive growth is the result of a shift from mindset to action, with many innovative approaches from localities regarding social policy credit.

Comrade Nguyen Cao Son, Vice Chairman of the Kim Son District People's Committee, shared: Kim Son is a coastal district with a large population and a high demand for loans to develop production and business, especially credit from the Social Policy Bank. To effectively implement Directive No. 40, the district focuses on the role and responsibility of local leaders in grassroots credit work, creating favorable conditions for the poor and policy beneficiaries to access capital and use loans effectively. Mobilizing resources for social policy credit is also a task that the locality pays attention to. Although the budget is still facing many difficulties, every year the District People's Committee balances and allocates capital to the District Social Policy Bank to supplement lending resources, reaching 11.7 billion VND in 2024, a 100% increase compared to before the Directive was issued.

To date, the total outstanding debt of policy credit programs in Kim Son district has reached approximately 835.5 billion VND, an increase of 556.7 billion VND compared to 2014; the average annual growth rate is approximately 20%, with over 51,600 customers receiving loans and more than 16,000 customers still having outstanding debt. Through policy credit activities, over 6,800 households have risen above the poverty line over the past 10 years.

The Social Policy Bank branch in Ninh Binh province promptly disbursed funds to support customers in the area in overcoming the damage caused by Typhoon Yagi (In the photo: disbursement of funds at the Gia Son commune transaction point, Nho Quan district, Ninh Binh province).

In fact, not only Kim Son district, but also the Party committees and authorities at all levels in Ninh Binh province have, in recent times, identified leadership and guidance on social policy credit activities as one of the key tasks in their regular work programs and plans. Accordingly, they have paid attention to supporting the Social Policy Bank with facilities and equipment to serve the unit's operations in the area; balancing and prioritizing the allocation of local budgets entrusted to the Social Policy Bank to supplement social policy credit capital, meeting the borrowing needs of poor households and other policy beneficiaries in the area more promptly.

The Vietnam Fatherland Front and socio-political organizations regularly disseminate the Party and State's guidelines and policies on social policy credit; closely monitor and direct grassroots levels to coordinate with banks in implementing credit programs; consolidate and improve the quality of credit and the operational quality of Savings and Loan Groups. They coordinate with local authorities and relevant units to integrate credit activities with programs and policies for agricultural and rural development, education and vocational training, job creation, and new rural development to enhance the effectiveness of social policy credit.

The work of consolidating and improving the quality of operations of the Board of Representatives of the Vietnam Bank for Social Policies at all levels has been carried out regularly, especially after the Chairman of the People's Committee at the commune level joined the Board of Representatives of the Vietnam Bank for Social Policies at the district level. This has enhanced operational capacity; policies and guidelines are implemented quickly, and difficulties and obstacles are promptly resolved at the grassroots level under the direct guidance of the Chairman of the People's Committee at the commune level.

With the dedication, commitment, and responsibility of the staff and employees of the Vietnam Bank for Social Policies, regardless of difficulties and hardships, being present at fixed transaction times to serve the people, they have connected the strength of the entire political system to participate in sustainable poverty reduction and ensure social security, contributing to the overall success of Directive No. 40.

Preferential loan capital provided through the Vietnam Bank for Social Policies (VBSP) has overcome capital shortages and unemployment, prevented usurious lending in rural areas; narrowed the gap between rich and poor, improved people's lives, enhanced economic conditions, stabilized social order and security, and strengthened people's trust in the Party and the State.

This further emphasizes the humanistic aspect of the policy.

Over the 10 years of implementing Directive No. 40 in the province, policy credit funds have been disbursed to nearly 591,000 poor households and other policy beneficiaries, with a total loan amount reaching nearly 12,054 billion VND. This capital has contributed to helping nearly 81,000 households overcome poverty; attracting and creating jobs for 78,630 workers; providing loans to 83 people who have completed their prison sentences for reintegration into the community; providing loans for 70,277 disadvantaged students; supporting nearly 1,600 disadvantaged students in purchasing equipment for online learning; constructing 348,571 clean water and sanitation projects; and building 1,700 houses for poor households and policy beneficiary families, making a positive contribution to addressing social security issues.

Clearly, the effectiveness of policy credit investments is not only measured by the economic value achieved but also by the solid foundation they provide for the poor, improving people's quality of life and contributing to the successful implementation of the National Target Program for Sustainable Poverty Reduction and New Rural Development. It can be affirmed that this is a correct policy of the Party and the State, meeting the aspirations of the people and increasingly becoming a reality.

To further enhance the effectiveness of social policy credit, in line with the context and socio-economic development situation in the new period, in the coming time, the Party committees, authorities, and functional agencies of Ninh Binh province will continue to pay attention to thoroughly disseminating the content of Directive No. 40. They will raise awareness among cadres, Party members, and the people about the position and role of social policy credit in the process of implementing the Party's guidelines and policies, and the State's laws on economic growth coupled with social progress and equity, ensuring social security, and sustainable poverty reduction. They will also promote the expansion of the "For the Poor" campaign and consider depositing funds and temporarily idle money into the Social Policy Bank to supplement capital.

Comrade Pham Duc Cuong, Director of the Ninh Binh Provincial Branch of the Vietnam Bank for Social Policies, stated: Although the poverty rate has decreased significantly, the tasks of the Vietnam Bank for Social Policies, both now and in the future, are not diminished. Uncertain risks in economic development are becoming a challenge for sustainable poverty reduction, especially the goal of improving the material and spiritual lives and happiness of the people.

Along this path, not only the efforts of the Vietnam Bank for Social Policies (VBSP) are needed, but also greater cooperation from the entire political system. Party committees and governments at all levels, especially their leaders, need to demonstrate a sense of responsibility in gathering information related to social policy credit activities; promptly directing the resolution of difficulties and obstacles, and consolidating and improving the quality of credit in their localities. Political and social organizations entrusted with this task should do a good job of advising and guiding the development and replication of effective production and business models.

From the Bank's perspective, we continue to maintain and effectively implement the organizational model and management methods of the specific policy credit program. This includes focusing on enhancing the role and responsibilities, and improving the quality of operations of the Board of Representatives of the Vietnam Bank for Social Policies at all levels. We prioritize training and development to improve professional competence and ethical conduct; building a team of reputable staff with a modern, advanced, and dedicated work style to serve the people with the motto "Understanding the people's hearts, serving wholeheartedly."

Simultaneously, enhance the effectiveness of inspection and supervision by the Board of Representatives of the Vietnam Bank for Social Policies at all levels and the internal control system. Link the effectiveness of inspection, supervision, and internal auditing activities with improving the ability to provide early warning of risks. Develop information technology systems to meet the requirements of digital transformation and banking modernization, in line with the specific operations of social policy credit.

Source: https://thoibaonganhang.vn/dot-pha-tu-chi-thi-so-40-cttw-ky-3-158917.html