VBSP pro-actively motivate local goverments to support poverty alleviation

Aside from funding of the central budget, over the past years, the People’s Committees of Lang Son province and its district-level localities have entrusted part of their local budgets to the Vietnam Bank for Social Policies (VBSP) to provide loans for poor households and other disadvantaged groups.

The People’s Committee of Cao Loc district, one of the key stakeholders, has always paid attention to allocating part of its local budget to the VBSP to provide loans for the poor and other last-mile population.

Vice Chairman of the district People’s Committee Hoang Quy, local representative head of the board of directors of the VBSP’s Cao Loc branch, said being well aware that inclusive finance plays an important role in assisting the poor to escape from poverty, over the past years, the district has entrusted part of its budget to the local VBSP branch, totaling over 2.2 billion VND (94,900 USD) so far.

Most of loans from this entrusted fund have been given to assist job creation, animal farming, small-scaled trading and craft development, thereby helping to generate jobs and stable income for locals, he noted.

Like Cao Loc district, the capital from local budget has further facilitated poor and disadvantaged people access to loans. It is noteworthy that the allocation has been carried out although local resources are still limited.

Residents in Dinh Lap commune of Dinh Lap district have effectively used loans funded by entrusted capital to develop animal farming.

So far, Lang Son and its localities have entrusted 68.84 billion VND to the VBSP, accounting for 2.4 percent of the total capital at VBSP branches in Lang Son. Of the amount, 48.53 billion VND came from the provincial budget and 20.31 billion VND from district-level localities’ budgets. A majority of the funding has been lent under poverty reduction and job creation programs.

More than 2,000 low-income households have received loans from this entrusted fund in recent years. According to the provincial VBSP branch, all the borrowers have used the loans to develop effective economic models in animal husbandry, afforestation, fruit tree farming, and craft industry.

Leaders of the provincial VBSP branch said this credit source has greatly helped reduce the poverty rate in Lang Son from 25.95 percent in 2015 to 12.97 percent by the end of September 2019.

Hoang Thi Loan in Na Thuon hamlet of Trang Cac commune, Van Quan district, is one of the successful customers in effectively using credit sourced from local budgets via the district’s VBSP branch.

Her family used to live under the poverty line in the past. In 2013, she got a 30 million VND loan from the VBSP and invested in raising buffaloes. Profit from buffalo rearing has helped her family rise out of poverty and allow her to plant more than 200 Bao Lam persimmon trees, and start raising pigs and chickens.

Doan said thanks to using the loan for right purposes, in 2017, her family repaid all debt and borrowed another 50 million VND to grow star anise trees and trade in this spice. As a result, her family has escaped from poverty and gained an annual income of over 100 million VND.

Deputy Director of the Lang Son provincial VBSP branch Pham Manh Ha said the capital from local budget has assisted many households to develop effective economic models, thus helping with sustainable poverty reduction and job creation. In the time ahead, the bank will continue supporting local authorities in the transfer of capital to the VBSP and facilitating low-income earners’ access to loans.

Source: vbsp.org.vn