The effectiveness of social policy credit programs

Ho Chi Minh City is a special urban area, the largest in the country in terms of population and economic scale; annually contributing over 1/5 of GDP and over 1/4 of budget revenue to the national budget. In particular, Ho Chi Minh City is a locality that has always been a pioneer in piloting and proposing to the central government many policies and mechanisms for the socio-economic development of the whole country and the city in particular.

Meeting the loan needs of the poor and policy beneficiaries

In recent years, the Standing Committee of the Ho Chi Minh City Party Committee has directed Party committees, Party organizations, authorities, Fatherland Fronts and mass organizations at all levels in the area to continue to widely disseminate the contents of Directive No. 40-CT/TW dated November 22, 2014 of the Central Party Secretariat on strengthening the Party's leadership over social policy credit (hereinafter referred to as Directive 40), Conclusion No. 06-KL/TW dated June 10, 2021 of the Central Party Secretariat on continuing to implement Directive No. 40-CT/TW of the Secretariat on strengthening the Party's leadership over social policy credit (hereinafter referred to as Conclusion 06) and directive documents of the City Party Committee and the City People's Committee on strengthening the Party's leadership over social policy credit.

The Standing Committee of the Ho Chi Minh City Party Committee has directed the concentration of financial resources to meet the borrowing needs of the poor and other policy beneficiaries in the area. The Summary Report on 10 years of implementing Directive No. 40 of the Secretariat on strengthening the Party's leadership over social policy credit in Ho Chi Minh City shows outstanding results in social policy credit activities. This is one of the regular and key tasks in implementing the annual socio-economic development plan for the 5-year period 2021 - 2025.

Up to now, the Social Policy Bank, Ho Chi Minh City branch, is implementing 8 main policy credit programs in the area, of which 4 programs are lent using local capital sources.

Total lending turnover from the beginning of 2015 to the end of April 2024 reached VND 24,291 billion, with nearly 560,000 poor households, near-poor households and other policy beneficiaries receiving loans. Debt collection turnover reached VND 15,365 billion, equivalent to 63.3% of lending turnover.

By the end of April 2024, the total outstanding debt of policy credit programs reached VND 11,058 billion, an increase of VND 8,834 billion compared to 2014, with 190,930 poor households and policy beneficiaries still having outstanding debt. The average outstanding debt per household reached VND 57.9 million, an increase of VND 40.7 million compared to 2014; the poor and other policy beneficiaries who have the need and meet the conditions can access the products and services provided by the Social Policy Bank.

Of which, outstanding policy credit serving production and business needs to create livelihoods and jobs reached VND9,743 billion, accounting for 88.1% of total outstanding debt. Outstanding policy credit serving life and living activities reached VND1,315 billion, accounting for 11.9% of total outstanding debt.

Effectiveness from 5 major credit programs

According to the Social Policy Bank, Ho Chi Minh City branch, outstanding credit from the programs focuses mainly on 5 large credit programs, accounting for over 99% of total outstanding loans.

Specifically, the Loan Program supports job creation, maintenance and expansion. The outstanding loans of the program, including central and local capital, reached more than VND 8,029 billion, accounting for 72.6% of the total outstanding loans, with 138,204 customers borrowing capital. Loan turnover reached VND 15,660 billion with 304,419 customers receiving loans.

"This is the credit program with the largest outstanding balance among the current social policy credit programs, which has significantly contributed to helping over 566,700 workers find jobs, reducing the unemployment rate, increasing income, expanding production, developing industries, and implementing the Ho Chi Minh City Sustainable Poverty Reduction Program," emphasized a representative of the Ho Chi Minh City branch of the Bank for Social Policies.

Vietgap clean vegetable growing model of households borrowing from Poverty Reduction Support Fund

The Poverty Reduction Support Loan Program has been implemented by the former Poverty Reduction Committee (now the Sustainable Poverty Reduction Committee) at all levels of the city since 1994. By the end of 2015 and early 2016, implementing the direction of the City People's Committee on implementing Directive No. 40 and in accordance with the actual situation of implementing the Sustainable Poverty Reduction Program for the period 2016 - 2020 according to the multidimensional approach in the city, the Poverty Reduction Fund was entrusted and handed over to the Social Policy Bank, City branch for management. From there, loans were made to poor households, near-poor households and newly escaped poverty households in the area, with a total outstanding debt at the time of handover of 215.9 billion VND.

After nearly 8 years of handover, total loan turnover reached 3,976 billion VND, with over 68,800 poor households, near-poor households, and newly escaped poverty households in the city receiving loans.

To date, the program's outstanding debt has reached VND 1,671.2 billion, an increase of VND 1,455.3 billion compared to the time of handover, accounting for 15.1% of the total outstanding debt, with 33,690 poor households, near-poor households and households that have just escaped poverty at various stages borrowing capital. This is the credit program with the second largest outstanding debt among the social policy credit programs currently being implemented.

The rural clean water and environmental sanitation credit program, implemented in 5 suburban districts of the city, has outstanding loans of VND565.3 billion, accounting for 5.1% of total outstanding loans, with over 32,938 households borrowing capital. Loan turnover reached VND1,917 billion, with over 120,800 households receiving loans.

Borrowing capital to build new, renovate and upgrade clean water supply works and sanitation works, ensuring compliance with national standards on clean water and environmental sanitation, has helped households in 5 suburban districts of the city improve their quality of life, contributing to the construction of new rural areas.

Credit program for students in difficult circumstances: Outstanding loans of the program reached 634.4 billion VND, accounting for 5.7% of total outstanding loans, with more than 13,226 customers borrowing capital. Loan turnover reached 1,909.3 billion VND, with more than 123,000 students receiving loans for study; debt collection turnover reached 1,323.3 billion VND.

According to the Social Policy Bank, Ho Chi Minh City branch, the credit policy for students has profound humanitarian significance in terms of economy, politics and society, creating high consensus among sectors, levels, and the social community, linking the economy with society in poverty reduction, ensuring social security, contributing to creating human resources for the country and the city in particular.

Transaction scene at Ho Chi Minh City Policy Bank branch

Thereby affirming the Party's policy and the Government's policy on credit for students according to Decision No. 157/2007/QD-TTg are correct, in line with the people's aspirations and the development trend of society.

Social Housing Loan Program: Since 2018, the City Branch of the Vietnam Bank for Social Policies has been allocated capital by the Vietnam Bank for Social Policies to implement the Social Housing Loan Program according to Government regulations in the City.

Total lending turnover reached 157.2 billion VND, with 322 customers receiving loans, total debt collection turnover reached 45.5 billion VND. Up to now, the program's outstanding debt has reached 111.7 billion VND, accounting for 1% of total outstanding debt, no overdue debt has occurred, with 291 customers borrowing capital. The program has supported a number of low-income people, officials, civil servants, armed forces... in the area to have stable and safe housing, gradually improving living standards, contributing to sustainable poverty reduction.

The city branch of the Vietnam Bank for Social Policies also implements 3 preferential credit programs in the socio-economic recovery and development program under Resolution No. 11/NQ-CP of the Government and a number of programs and projects entrusted by investors in the area. Specifically, the program provides loans to employers to pay for work stoppages and production recovery wages; loans to students in difficult circumstances to buy computers and equipment for online learning; loans to support job creation for people whose land has been recovered to implement investment projects in the area... The above programs have a total outstanding loan balance of 45.9 billion VND and have over 1,540 customers borrowing capital.

Source: https://nld.com.vn/tp-hcm-hieu-qua-tu-nhung-chuong-trinh-tin-dung-chinh-sach-xa-hoi-196240620215526588.htm