Increasing trust capital: 'Leverage' for sustainable security

Trust capital helps increase resources for policy credit, directly supporting the poor and disadvantaged groups to develop the economy, increase income, and stabilize their lives.

Capital flow spread

The capital entrusted through the Vietnam Bank for Social Policies (VBSP) is a source of capital from the local budget transferred to the VBSP for management and lending to social policy beneficiaries. This source of capital helps increase resources for policy credit, directly supporting the poor and disadvantaged to develop the economy, increase income, stabilize life...

In the 2020-2024 period, Thai Nguyen province has entrusted 258.8 billion VND from the local budget through the Vietnam Bank for Social Policies, an increase of more than 166 billion VND compared to 2019. Of which, the provincial budget is 133.4 billion VND, the district level is 117.2 billion VND and other organizations. From this resource, over 21,000 poor households and policy beneficiaries have access to loans, with a total loan turnover of over 371 billion VND.

Through entrusted capital, many households in Dong Hy district have received loans to create jobs.

The lending programs focus on key areas such as: Supporting job creation, building social housing, supporting people who have completed their prison sentences to reintegrate into the community... The total outstanding debt by the end of 2024 reached 255.6 billion VND, an increase of 163.6 billion VND compared to 2019. Many families from near-poor and difficult situations, thanks to the entrusted capital, have risen up, developed production, and escaped poverty sustainably.

Ms. Nguyen Thi Sen, in Tam Va hamlet, Van Lang commune (Dong Hy) shared: My family is a poor household. Thanks to a loan of 50 million VND from the Social Policy Bank, I invested in planting new tea varieties and planting forests. In 2021, my family escaped poverty and had food and savings. Now I continue to borrow capital from the program for newly escaped poor households to increase production and develop the economy.

In addition, the loan program to support people who have completed their prison sentences has also recorded positive results. Mr. Dao Van Mien, La Le hamlet, Tan Thanh commune (Phu Binh) shared: Returning to my hometown after serving my prison sentence, I was confused about where to start again. In March 2024, thanks to a loan of 100 million VND from the Vietnam Bank for Social Policies, I decided to invest in raising 2 buffaloes for meat, 3 sows and raising a flock of about 100 chickens. Thanks to this capital, I had the opportunity to rebuild my life, gradually stabilize my family's economy, and move towards a better future.

Chart of Thai Nguyen's capital increase in the period 2020-2025.

This powerful resource will continue to be prioritized for disbursement into credit programs with great influence, creating sustainable livelihoods, directly contributing to the goal of sustainable poverty reduction, building new rural areas and ensuring social security.

Capital pressure - "bottlenecks" that need to be untied

For many years, the local budget capital entrusted through the VBSP in Thai Nguyen has grown slowly, failing to meet the large borrowing needs of the poor and policy beneficiaries. The main reason is that the provincial and district budgets are still limited, lacking initiative in integrating and prioritizing entrusted capital into public investment plans. Many localities are confused in balancing the budget, and have not clearly defined the role of entrusted capital as an effective investment channel for social security. In addition, the priority given to infrastructure projects or other fields has limited resources for entrusted capital...

2025 marks a turning point when the province decided to transfer 140 billion VND to the entrusted capital source, many times more than in previous years. Although the capital has increased, according to a survey, the demand for loans in the area in the coming years will continue to increase sharply. In 2025, the capital demand for policy credit programs is expected to reach 731.8 billion VND, while resources can only meet 433 billion VND, a shortage of nearly 300 billion VND. In particular, in the period of 2026-2030, the total capital demand is estimated at more than 3,351 billion VND, of which loans to support job creation, maintenance and expansion alone account for nearly 2,800 billion VND.

Many households in La Hien, Phu Thuong, and Lau Thuong communes (Vo Nhai) have received loans entrusted to them through the Social Policy Bank to develop fruit growing areas, especially custard apple trees.

Reality shows that the central government's allocated capital is difficult to increase dramatically, and local budgets are limited. If resources are not proactively calculated, Thai Nguyen will face the risk of capital shortage, directly affecting the progress and effectiveness of poverty reduction and social security programs. Mr. Le Van Hong, Deputy Director of the Bank for Social Policies Thai Nguyen Branch, emphasized: Without drastic participation and increased entrusted resources, it will be difficult for us to meet the legitimate borrowing needs of the people. The province needs to soon include entrusted capital in the medium-term and long-term public investment plan.

Long-term planning, creating social security

Ms. Khuong Thi Kim Nhung, President of the Women's Union of Phu Luong district, said: If there is more capital, the Union will boldly accept the trust, helping many women in remote areas to have conditions to develop their economy. Mr. Tran Trong Quyet, Director of the Social Policy Bank of Vo Nhai district, commented: The trust capital is not just money, it is a livelihood, an opportunity for the poor to rise up. Investing in policy credit is investing in the future...

Chart of capital needs and shortages in 2025.

Based on the above reality, the VBSP Thai Nguyen Branch proposed that the Provincial People's Committee allocate 140 billion VND in 2025 and develop a plan to entrust 1,000 billion VND for the period 2026-2030. Proactively including entrusted capital in the public investment plan will be a key solution to help Thai Nguyen maintain poverty reduction achievements, ensure social security, and create momentum for sustainable socio-economic development, especially in new rural communes. The province's functional branches also calculate to expand the socialization of entrusted capital, mobilize enterprises and social organizations to participate, helping many vulnerable groups access capital, such as women in remote areas, young entrepreneurs, and ethnic minorities.

Many ethnic minority women in the province have access to policy credit capital, thereby having more conditions for economic development.

Policy credit and entrusted capital are effective financial tools, creating momentum for localities in implementing the National Target Program on Sustainable Poverty Reduction. If this resource is well utilized, Thai Nguyen can completely turn challenges into opportunities, rising to become a bright spot in social security and model new rural development in the midland and mountainous areas of the North...

Source: https://baothainguyen.vn/kinh-te/202503/tang-von-uy-thac-don-bay-an-sinh-ben-vung-aca226f/