20 YEARS ON THE JOURNEY OF POVERTY REDUCTION - For a prosperous and happy Vietnam

(VBSP News) The document of the 13th National Party Congress has set out a dual goal: "Sustainable reduction poverty associated with the encouragement of getting rich reasonably". Thus, successfully implementing such goal is a specific way to realize the aspiration for a prosperous Vietnam. It is the inner strength for the country to develop quickly and sustainably in the coming time. This also posing challenges for the implementation of social policy credit, which in the past time, VBSP has been well aware of and there have been steps from operation to policy implementation in linewith the country's economic development.

VBSP has effectively implemented social policy credit over the past 20 years to people in remote areas and ethnic minorities

Unlocking the driving force of breakthrough development

As of November 30, 2022, the total outstanding loans reached VND nearly 280 trillion, with nearly 6.5 million active customers. In particular, VBSP is coordinating with local authorities to integrate credit programs with economic development policies, contributing to raising income for people participating in domestic and international production value chains from the start-up movement, implement the National Strategy on human resource development, realize the goal of gender equality, develop the collective economy to become one of the pillars of national economic development and socialism building.

As in Bac Ninh, the Standing Committee of the Provincial Youth Union advises the Provincial People's Committee to deploy the preferential credit program to support start-up by entrusting capital disbursement through the VBSP branch in Bac Ninh province. Up to now, the total outstanding loan of the program has reached nearly VND 15.4 billion, the entrusted capital People's Committee from the districts and cities entrusting to VBSP was VND 3.2 billion to support over 140 projects. In addition to the supplement capital of the province, National Fund for Employment of the Central Union supported more than VND 2.4 billion, disbursing loans for 29 youth start-up projects.

The household of Ms. Dang ThiHau, Chau hamlet, Bao Dai commune, Luc Nam district (Bac Giang) used to be difficult. Thanks to the Job Creation Lending Program, she borrowed VND 50 million for the development of a membrane house to grow high quality vegetables and fruits with an area of 1,500 square meters and fish farming. As a result, her family’s life got better. However, the family's economic model is still small, so by 2020, when she got a loan of VND 200 million from the youth start-up funding source, her family has expanded to develop green houses and raise fish effectively. Currently, the family maintains and expands over 10,000 square meters of membrane houses to grow clean vegetables and fruits, creating stable jobs for the family members and some local workers.

Increasing resilience through crisis

In particular, natural disasters and special crises, especially the Covid-19 pandemic, have demonstrated the role of VBSP in quick policy response and implementation, contributing to ensuring social security, maintaining and promoting the country's economic development. As in the Covid-19 period, VBSP actively balanced resources to support the poor and other policy beneficiaries to overcome difficulties.

The Government's support policies to restore production and business were quickly implemented as soon as they were issued such as the creative startup project of Ms. Bui Thi Tuyet Nhung with the dream of changing the coastal saline lands into noni forests that both help block the wind and bring profits to farmers, especially women. After 2 years of product testing and development, in November 2021, she decided to establish the “Best One” Cooperative, focusing on the production and processing of products from noni tree. In particular, the product "Noni powder" has been recognized by the Provincial People's Committee to meet the 4-star OCOP standard.

However, this is also the hard time when the Covid-19 pandemic was still spreading on a large scale. Ms. Nhung thought that she had to stop production for a while. Therefore, being loaned VND 100 million by the VBSP in Tam Ky city (Quang Nam) by the end of 2021 has become a great resource for her to maintain production and create jobs for 8 workers with an average salary of VND 5.5 million/month. Besides, this loan is also supporting Ms. Nhung to go further on her development path such as supporting farmers with seeds and fertilizers to expand noni growing area; linking with craft villages to create an experiential tourism chain for tourists to visit noni garden, production facilities, fishery village...

The preferential capital has timely supported the “Best One” Cooperative, Tam Ky (Quang Nam) to maintain production and create jobs for 8 local workers

Currently, “Best One” products are available in many fastidious markets across the country such as Hanoi, Ho Chi Minh city...“Recently, pineapple noni juice was introduced to the Korean market. It is the honor of Best One, which is like adding wings for products to fly far to the international market," said Nhung.

Many miracles of business revival from the efforts and hearts of VBSP staff have contributed to the national achievement, making Vietnam one of the few countries in the world with positive growth.

Credit policy to support workers and businesses affected by the Covid-19 pandemic, recovery and socio-economic development has a lending turnover of nearly VND 18,000 billion for nearly 280 thousand customers.

Conclusion No. 06-KL/TW dated June 10, 2021 of the Secretariat on continuing the implementation of Directive No. 40-CT/TW of the Secretariat on strengthening the Party's leadership in social policy credit sets a requirement to identify the implementation of social policy credit in the coming period as one of the key tasks in implementing the 5-year socio-economic development plan (2021 - 2025) and 10-year socio-economic development strategy (2021 - 2030), contributing to the successful implementation of the Resolution of the 13^th Party Congress.

In order to fulfill the tasks assigned by the Party and Government, in the coming period, VBSP determines that social policy credit is an important solution to implement the guidelines, policies, goals and tasks of the Party and State on economic growth in parallel with the implementation of social justice, the implementation of the national target programs as well as the socio-economic development of the country. VBSP must maintain and continue to promote the effectiveness and efficiency of the organizational model, credit management method, and specific social policies, suitable to Vietnam's practice; focus on unifying policy credit functions from commercial banks to VBSP; improve the operational capacity of VBSP to develop in a stable and sustainable direction, enough capacity to well implement social policy credit.

In the coming time, VBSP will continue to coordinate with ministries, mass organizations and localities to actively and effectively implement Directive 40-CT/TW, Conclusion 06-KL/TW of the Secretariat and Decision 1630/QD-TTg of the Prime Minister on the plan to implement Directive 40-CT/TW of the Secretariat on strengthening the Party's leadership over the social policy credit; Focus on mobilizing resources to effectively implement social policy credit, especially capital from the local budget entrusted to VBSP to supplement capital for the poor and other policy beneficiaries. Borrowers also need to target large-scale production and business projects, products created along the value chain;develop cooperative models suitable to the natural conditions of each region, creating breakthroughs in raising income levels for people towards the goal of a prosperous country and people as a lifelong wish of President Ho Chi Minh and the Party issued the Resolution of the XIII Congress "Improving the people's material, spiritual and happy life", making Vietnam a high-income country by 2045.

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