Mr. Huynh Van Thuan, Deputy General Director of the Vietnam Bank for Social Policies (VBSP), said that since implementing Directive No. 40-CT/TW, the VBSP has created conditions to help over 21.1 million poor households and other policy beneficiaries get loans.

According to the leaders of the VBSP, the total source of social policy credit reached VND373,010 billion, an increase of VND238,338 billion (nearly 2.8 times) compared to when Directive No. 40-CT/TW began to be implemented. The average annual growth rate of social policy credit reached 10.8%.

Of which, the capital entrusted from localities at all levels reached 47,350 billion VND, accounting for 12.7% of the total capital, an increase of 43,542 billion VND compared to before Directive 40. Currently, 100% of provincial and district-level units have balanced and entrusted local budget capital to the Vietnam Bank for Social Policies to supplement loan capital.

As of July 31, 2024, the total outstanding debt of policy credit programs reached VND 350,822 billion, an increase of VND 221,365 billion compared to the end of 2014, with more than 6.8 million poor households and policy beneficiaries still having outstanding debt, the average annual growth rate reached 10.5%.

Of the total outstanding social credit balance, outstanding loans to communes in ethnic minority and mountainous areas are VND 124,020 billion, accounting for 35.3% of total outstanding loans, with more than 2.2 million customers still in debt; outstanding loans to poor districts are VND 34,309 billion, accounting for 9.8% of total outstanding loans, with more than 556,000 customers still in debt; outstanding loans to ethnic minority customers are VND 86,900 billion, accounting for 24.8% of total outstanding loans with more than 1.6 million customers still in debt.

Launching a writing contest.jpg
Press conference to announce the launching ceremony of the writing contest "Social policy credit - Party's will, people's heart"

“The results after nearly 22 years of implementing social credit and especially after 10 years of implementing Directive No. 40-CT/TW of the Secretariat have affirmed the role of social credit in implementing social progress and equity according to the Party's guidelines and policies and the State's laws and policies,” said Mr. Huynh Van Thuan.

Up to now, social credit has met the borrowing needs of the majority of the poor and other policy beneficiaries in 100% of communes, wards and towns nationwide, focusing on prioritizing loans for ethnic minority areas, particularly disadvantaged areas, remote areas, border areas, islands...

It can be affirmed that Directive 40 has been put into practice, promoted effectively, in line with the Party's will and the people's will, and received the people's support, thereby affirming that the VBSP is a public financial institution that effectively and efficiently implements policy credit programs assigned by the Government.

Social policy credit capital has affirmed its important position; promoting timely effectiveness and efficiency in financial support for the poor and other policy subjects. Thereby contributing to the synchronous implementation of solutions to complete the goal of multidimensional poverty reduction, inclusiveness according to the Resolution of the 13th Party Congress, ensuring social progress and equity, maintaining the socialist orientation in Vietnam's market economy.

With a specific and effective credit capital management method, with the participation of the entire political system, and good propaganda and mobilization work, awareness in the social community has been changed. The poor and other policy subjects have boldly changed their thinking and working methods; proactively borrowed capital to invest in production and business, create jobs, improve their lives, and gradually approach commodity production thanks to credit relationships with loans and repayments; eliminating the mindset of relying on the state's allocation and free-for-all regime.