Preferential credit: "Giving wings" to young people to start a business

Preferential loans from the Youth Startup Fund of the Ho Chi Minh Communist Youth Union (Youth Union) of Bac Ninh province have contributed to building many effective youth startup models, creating a ripple effect among young people, and actively supporting local socio-economic development.

Together with staff from the Vietnam Bank for Social Policies (VBSP) in Bac Ninh and staff from the Provincial Youth Union, we visited the clean food growing model of Mr. Pham Van Son, in Xuan Binh village, Dai Xuan commune, Que Vo town. With his knowledge of information technology from Hanoi University of Science and Technology, Son decided to return to his hometown to start a business with a clean food model using automatic watering technology. From the capital of 300 million VND accumulated after working for a company in Hanoi for 3 years and borrowing from friends, Son rented 7,000 m2 of land to grow asparagus.

Mr. Son went all the way to Ninh Thuan to buy seeds, but due to lack of experience, the seeds were not suitable for the Northern climate, so the asparagus grew poorly, was susceptible to fungal diseases, and had low productivity.

Mr. Pham Van Son discussed with officials of the Provincial Youth Union and the Vietnam Bank for Social Policies, Bac Ninh branch.
on planting techniques

Not discouraged, he carefully studied the crop varieties and market demand, and started growing baby cucumbers and melons. He was lent 900 million VND by the Social Policy Bank from the start-up investment fund of the Youth Union of Bac Ninh province with preferential interest rates. With the capital, Mr. Son invested in and renovated the high-tech greenhouse irrigation system to grow baby cucumbers and melons. Grown in a high-tech greenhouse with modern care techniques, the melon and baby cucumber gardens grew very well.

Mr. Pham Van Son operates the automatic watering system and takes care of cucumber plants.

“With the automatic irrigation and fertilization technology system, we have saved water and reduced costs by up to 90% compared to hiring manual workers and manual watering methods,” Mr. Son shared. Currently, his annual revenue from growing baby cucumbers and melons is about 550 million VND.

While the above model demonstrates creativity in applying information technology to the implementation of clean agriculture, Mr. Hoang Van Quan, Dai Bai commune, Gia Binh district, chose to start a business with the traditional profession of bronze casting. Quan shared that his family has a tradition of bronze casting, so he always cherished choosing this profession to start a business, not only to assert himself but also to contribute to preserving the traditional profession of the locality and family.

Preferential capital has helped Mr. Hoang Van Quan boldly expand his production facility.

Initially, it was just a small production facility, but when the Bank for Social Policies and the Provincial Youth Union lent him 1.5 million VND to start a business with preferential interest rates, Mr. Quan expanded his production facility, creating jobs for 20 local workers, with an income of about 6 million VND/person/month. "Thanks to preferential loans, many young people are more confident in starting a business, creating jobs for themselves and many others in their hometown," Quan confided.

According to the Bac Ninh Provincial Youth Union, implementing the Project "Supporting Youth Start-ups for the period 2018 - 2025", up to now, the Provincial Youth Union has supported 99 projects to help young people start businesses; organized training on start-up knowledge for more than 200 Youth Union officials in the province with the following topics: Start-up trends for young people; Secrets to successful start-ups; Solutions to improve the quality of entrusted activities, to help Youth Union officials better understand, improve propaganda skills and effectively accompany local youth in the field of start-ups...

Mr. Nguyen Bao Dai - Deputy Secretary of the Ho Chi Minh Communist Youth Union of Bac Ninh province said that the startup loan program has helped to inspire the creative spirit, daring to think and dare to do of union members and young people in economic development, and legitimate enrichment in their homeland. The capital for youth startup loans is entrusted through the Bac Ninh branch of the Vietnam Bank for Social Policies, helping young people to access it easily. Through this loan program, many young people have boldly started their own businesses with many effective projects and models. Up to now, most of the projects have been disbursed well, creating regular and stable jobs for thousands of workers, not only contributing to creating a new direction for economic development but also helping to gather young people and develop the Youth Union in rural areas and industrial parks.

However, due to limited capital, the Provincial Youth Union Standing Committee recommends that the province balance the budget and add more capital entrusted to the Vietnam Bank for Social Policies for youth loans. In addition, the Youth Union chapters at all levels in the province continue to strengthen the inspection and control of the effective use of capital for disbursed projects; review and strengthen propaganda to expand the target group for capital access, and support youth union members to complete loan procedures to develop production and business.

Regarding the bank entrusted with the loan, Mr. Hoang Trong Cuong - Deputy Director of the Bac Ninh branch of the Social Policy Bank said that the work of accompanying young people to start businesses in Bac Ninh province is increasingly going into depth and achieving positive results. Currently, the total capital to support young people to start businesses entrusted through the Bac Ninh Social Policy Bank is 90 billion VND, with a preferential interest rate of 5%. By the end of 2023, after more than 5 years of implementing the project, 180 youth start-up projects have received loans with a total loan turnover of more than 160 billion VND, creating jobs for over 1,500 workers. In 2023 alone, the Bac Ninh branch of the Social Policy Bank disbursed to 32 projects with a total amount of 33.2 billion VND. Capital is invested in the right beneficiaries, loan projects all use capital for the right purposes, promote efficiency, many good economic development models, create jobs for workers, bring benefits to society.

In the coming time, to continue to promote the effectiveness of policy credit capital, the Provincial People's Credit Fund will continue to closely coordinate with the Youth Union at all levels and related units to deploy many synchronous solutions to bring policy credit capital to the right beneficiaries, ensuring that qualified customers with needs will have access to capital; promptly remove obstacles, create conditions to support union members and youth, and easily access policy credit capital. The Provincial People's Credit Fund will coordinate with the Provincial Youth Union to organize training on entrustment skills for officials and the Management Board of savings and loans groups, and provide policy credit advice to Youth Union officials on the work of setting up projects to support youth startups. Along with that, the Provincial Youth Union will organize innovation and startup competitions, organize dissemination of policies to support youth startups and introduce startups, promote products of businesses that are effectively supported with youth startup loans.

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