Social Policy Bank of Chuong My District: Transformation thanks to effective implementation of Directive 40 (Part 2)

The establishment of the VBSP with its operating model and specific credit programs is a deeply humane solution, one of the “bright spots” in poverty reduction policies. With the motto “Understanding the people, serving wholeheartedly”, “leaving no one behind”, the effective implementation of Directive No. 40 has promptly supported policy beneficiaries, especially poor households, near-poor households, and people with disabilities to borrow capital to develop their family economy, escape poverty, and ensure social security.

Capital support, opening the way out of poverty

In modern life, amidst the hustle and bustle of worries, there are still many difficult circumstances and unfortunate lives that need to be cared for and shared. In Chuong My district (Hanoi), social policy credit has become an effective tool to help the poor and vulnerable, motivating them to escape poverty sustainably and gradually stabilize their lives.

Through preferential credit programs of the Vietnam Bank for Social Policies (VBSP), thousands of households in Chuong My district have had the opportunity to access loans with low interest rates, not only to overcome immediate difficulties but also to develop the economy in the long term. Loan programs such as: poor households, near-poor households, job creation, students, house construction and repair for poor and near-poor households, loans for people who have completed their prison sentences... have brought about practical results.

Following Mr. Do Viet Hoa, Head of the Savings and Loan Group of the Farmers' Association of Dam Dau village, Tot Dong commune, to meet Ms. Tran Thi Toan with a small, miserable figure. She confided: “My husband unfortunately passed away suddenly, I myself was sick, and we had many children, so the family fell into poverty. Fortunately, my children were all good students. The eldest child passed the university entrance exam. The whole family tried to save money for him to study. By the third year, our resources were almost exhausted. Luckily, the bank lent us a student loan with a total amount of 20 million VND. Two years later, my second child continued to enter university. With the wholehearted help of Mr. Hoa, the head of the department and the bank, my second child was able to borrow money with a total amount of 60 million VND. Currently, my eldest son has graduated and has a stable job. He has used his salary to pay off his loan. The loan has saved my family. Now my family has escaped poverty.”

Also facing difficult circumstances, Ms. Le Thi Thanh, a near-poor household living in Phuong Nghia village, Phung Chau commune, was able to borrow 50 million VND to repair her house. Visiting Ms. Thanh, looking at her spacious and clean level 4 house, Ms. Thanh, a single woman with wrinkles of hardship carved out over the years, still smiled warmly to welcome us. Ms. Thanh said: “Recently, I received 50 million VND from the elders in the commune and village, and the bank lent me another 50 million VND without interest. The neighbors also gathered to support me to repair my old dilapidated house so that I can have a nice place to live like this. My life is already very satisfying, thank you very much…” The image of Ms. Thanh smiling and shaking hands with each person to thank us is still deeply imprinted in the hearts of our working group. In 2024, 40 poor and near-poor households in the district were able to borrow capital to build new or repair and renovate houses with an amount of 2 billion VND.

Ms. Dang Thi Dinh in Long Chau Mieu village, Phung Chau commune received support for policy credit loans after the Covid-19 pandemic.

Leave no one behind

The local government and the Social Policy Bank of Chuong My district always aim to ensure that no one is left behind, not only in the journey of poverty reduction but also to accompany people in times of difficulty and adversity.

As the first person to borrow capital in the district, Ms. Bui Thi Dieu, wife of Mr. Pham Van Quang, who has completed her prison sentence and is living in Trung Hoa commune, excitedly said: "My family is very happy because the Savings and Loan Group in the village considered and approved a loan of 100 million VND for my family to repair barns, buy chickens and ducks, renovate fish ponds, with quick and simple loan procedures and low interest rates". It can be said that the amount of capital borrowed under Decision No. 22/2023/QD-TTg from the Vietnam Bank for Social Policies has helped Mr. Quang, after being rehabilitated, reintegrate into the community, maintain his job, increase his income, and become a useful person for his family and for society.

Covid-19 has come and lasted for a long time, causing many consequences. There are families who have lost loved ones, many children have become orphans, many workers have lost their jobs, and the lives of many families that seemed to have returned to normal are now facing many difficulties and obstacles. Ms. Dang Thi Dinh in Long Chau Mieu village, Phung Chau commune, used to be a skilled tailor who had worked for a company in the industrial park for more than ten years, with a stable income. When Covid-19 came, there was almost no processing work at the company. Being an old person, she was forced to reduce her workforce, and her life became difficult. After a while, Ms. Dinh, with the advantage of her skills, took on direct processing for some domestic suppliers. Seeing the potential, she boldly opened a workshop to create more jobs for the women in the village. During the difficult time of lacking investment capital, she learned about preferential credit policy with simple loan procedures and was approved for a loan of 100 million VND to buy machinery and garment materials. The timely capital has supported her a lot in her entrepreneurial journey.

Or recently, Storm No. 3 Yagi passed through Chuong My, leaving behind severe impacts after the storm due to prolonged flooding, many families had their roofs blown off and were submerged deep in mud. During those difficult times, to share with the unfortunate circumstances, the staff of the district's Social Policy Bank also contributed their wages and salaries, and allocated union funds to give 30 gifts worth 30 million VND to 30 households in especially difficult circumstances. And even during the flooding period, the district's Social Policy Bank also promptly summarized the damages to propose timely solutions, including postponing interest collection for nearly 1,000 households deeply flooded after the storm, proposing to postpone debt collection of 02 loans with the amount of 90 million VND; synthesizing loan capital needs to restore production after the storm with the proposed amount to superiors of 59 billion VND. Up to now, the district's Social Policy Bank has disbursed 20 billion VND. The remaining capital of 39 billion VND after being allocated will be disbursed promptly in the coming time.

As a person who has just received a loan to restore production and business after the storm, Mr. Do Van Ngo has received a loan of 100 million VND from the job creation program to repair the barn and buy more piglets. In addition, Mr. Ngo also received a loan from the clean water supply and rural environmental sanitation program of 20 million VND, the total outstanding debt is currently 120 million VND. Mr. Ngo said: his family has encountered many difficulties because it is located in the most flooded area of ​​the district, Nhan Ly village, Nam Phuong Tien commune. He and his family had to evacuate, the entire house and barn were deeply flooded. Thanks to the capital from the VBSP, his family has the funds to repair the barn and buy more piglets, restoring the family's livestock model.

Spreading human values

Ms. Bui Minh Duc, President of the Women's Union of Chuong My district, shared: “Policy credit is an extremely meaningful and practical resource that helps improve the lives of many households, especially those in difficult and disadvantaged situations. We always accompany women, leaving no one behind. Preferential credit policies have brought hope and opportunities to many disadvantaged women, helping them change their lives and affirm their role in the family and society.”

Policy credit is not only financial support but also spreads profound human values. It helps people have more faith in the policies of the Party and the State, arousing the spirit of self-reliance, self-improvement, and overcoming difficulties. The stories of life-changing thanks to policy credit in Chuong My are vivid proof of the effort to "leave no one behind," while affirming the important role of social policy credit in the country's sustainable development.

Source: https://thoibaonganhang.vn/nhcsxh-huyen-chuong-my-chuyen-minh-nho-trien-khai-hieu-qua-chi-thi-40-bai-2-158900.html