Conference on reviewing the Development Strategy of VBSP for the 2011-2020 period and receiving the title "Hero of Labor" in the renovation period

(VBSP News) On December 21, 2020, in Hanoi, VBSP held the conference on reviewing the Development Strategy of VBSP for the 2010-2020 period and receiving the title "Hero of Labor" in the renovation period. Mrs. Dang Thi Ngoc Thinh - Member of the Party Central Committee, Vice President of the Socialist Republic of Vietnam, First Vice Chairman of Central Emulation and Reward Council attended and made a speech at the conference.

Vice President Dang Thi Ngoc Thinh mounted the "Hero of Labor" badge in the renovation period on the traditional flag of VBSP

At the opening of the conference, Governor of the State Bank of Vietnam cum Chairman of the Board of Directors of VBSP Nguyen Thi Hong emphasized that, after 10 years of implementing the VBSP's development strategy for the period 2011 - 2020, under the leadership and direction of the Party, National Assembly and the Government, ministries, departments, branches, party committees, local authorities, VBSP is the organization tasked with implementing social policy credit that has cooperated closely with mass organizations to concentrate resources, promote the implementation of credit programs, realize the goal of sustainable poverty reduction, ensure social security, build a new countryside and contribute to economic social development.

Governor of the State Bank of Vietnam cum Chairman of the Board of Directors of VBSP Nguyen Thi Hong made an opening speech at the conference

Social policy credit for the poor and other policy beneficiaries has really come to life. From these results, it can be affirmed that the social policy credit has achieved positive results, consistent with the policies of the Party and State on sustainable poverty reduction, ensuring social security, improving the material and spiritual life of the people, the poor and other policy beneficiaries nationwide. The effectiveness of the social policy credit has confirmed that the management method, model of organization, administration and operation of VBSP are completely suitable with the practical conditions of our country. It has also mobilized the strength of both the political system and the society to participate in poverty reduction and social security.

General Director of VBSP Duong Quyet Thang reports the results of the implementation of the VBSP's development strategy for the period 2011-2020

General Director Duong Quyet Thang said: “VBSP has focused on mobilizing financial resources to better meet the need for loans of the poor and other policy beneficiaries. In the period 2011-2020, the growth rate of the total capital from policy credit activities reached an average of 10%/year. The size of the total capital from the policy credit activities increased by 2.6 times, from VND 90,400 billion in 2010 to VND 235,661 billion as of 31/12/2020. The average annual growth rate of outstanding loans meets the development strategy's target, the policy credit source focuses on lending to communes in ethnic minority, extremely difficult, remote and border areas. In the period 2011-2020, the growth rate of outstanding loans of credit programs averaged about 10%/year. Total outstanding loans of credit programs increased by 2.5 times, from VND 89,462 billion in 2010 to VND 226,264 billion estimated at 31/12/2020, with nearly 6.5 million active customers, of which loans for ethnic minorities and mountainous households are VND 56,344 billion (accounting for 25% of total outstanding loans). Policy credit quality has been constantly improved, the overdue debt ratio of the whole system is always much lower than the target of the Development Strategy. By the end of 2020, overdue and frozen debts account for less than 1%/total outstanding loans.

Delegates attending the conference

In the past 10 years, over 21.5 million turns of poor households and other policy beneficiaries got loans with lending turnover from credit programs reached VND 504,565 billion. The preferential credit capital has promoted the socio-economic efficiency, contributing to nearly 3.7 million households surpassing the poverty line; attracting and creating jobs for more than 2 million workers from the National Employment Fund; helping 1.5 million disadvantaged students to continue studying; constructing nearly 11.6 million rural clean water and environmental sanitation facilities; building nearly 43.5 thousand houses against flooding for households in the Central region and the Mekong River Delta, nearly 327 thousand houses for poor households and other policy beneficiaries, nearly 13 thousand social houses; helping more than 43 thousand workers work abroad.

Mr. Ketut Kusuma - World Bank Senior Financial Sector Specialist made a speech at the conference

Impressed by the achievements of VBSP, especially in recent years with nearly 6.5 million active customers of more than USD 10 billion through a nationwide network of 63 provincial branches, 625 district transaction offices, 10,426 commune transaction points and nearly 173,000 savings and credit groups, Mr. Ketut Kusuma said “Through this network, VBSP has reached about 92% of the total number of potential borrowers and accounts for 87% of the total value of loans in the microfinance market”.

Vice President Dang Thi Ngoc Thinh awarded certificate of "Labor of Hero" in the renovation period for VBSP

It can be said that the VBSP's development strategy for the 2011-2020 period has been successfully implemented, basically completing the set objectives. VBSP has become a companion to support the poor and other policy beneficiaries, helping them have the opportunity to move forward with the development of society. Thanks to particularly outstanding achievements in labor and creativity from 2009 to 2019, contributing to the building and protecting the country, on November 13, 2020, President of the Republic Socialist Vietnam has signed to issue Decision No. 2015 / QD-CTN on awarding the title "Labor of Hero" in the renovation period for VBSP.

Vice President Dang Thi Ngoc Thinh awarded the "Hero of Labor" flag in the renovation period for VBSP

Speaking at the conference, Vice President Dang Thi Ngoc Thinh emphasized that, after nearly 35 years of reform, our country has gotten great achievements. Our country’s position and reputation in the international arena have been enhanced. However, the process of urbanization continues to take place rapidly, creating great pressure on the needs of infrastructure development and environmental pollution treatment; the rich-poor gap and development level between a number of regions and localities tend to expand. Therefore, the social policy credit implemented by VBSP should continue to promote the effectiveness and efficiency of the organizational model and management method, continuing to arrange and strengthen resources to meet capital for credit programs according to the contents of the implementation of the country's socio-economic development strategy. Besides, improving the operational capacity of VBSP to develop in the direction of autonomy, stability, sustainability, and have the capacity to well implement the government's social policy credit for social policy beneficiaries according to regulations.

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