Credit policy is a highlight in the policies for ethnic minorities

(VBSP News) More than 1.4 million clients who are of ethnic minorities are benefiting from preferential credit programs at VBSP, with a total loan of VND 135.96 trillion (US$5.84 billion). Credit programs under social policies have contributed positively to implementing national target program on sustainable poverty reduction and social welfare assurance.

"Preferential credit policy, which is one of 54 direct policies for ethnic minority households, is a highlight in all the policies for ethnic minorities in sustainable poverty reduction", Ms. Truong Thi Mai, Member of the Politburo, Secretary of the Party Central Committee - Head of the Central Commission for Mass Mobilization said at the Scientific Conference on "Evaluating the effectiveness of social policy credit programs for ethnic minorities in Vietnam” organized by VBSP and Committee for Ethnic Minority Affairs on September 25, 2019 in Hanoi. Mr. Le Minh Hung, Member of the Party Central Committee - Governor of Vietnam State Bank cum Chairman of VBSP; Mr. Do Van Chien, Member of the Central Committee of the Party - Minister, Chairman of the Committee for Ethnic Minority Affairs and Mr. Duong Quyet Thang, Member of the BOD - General Director of VBSP co-chaired the Conference.

Ms. Truong Thi Mai, Member of the Politburo, Secretary of the Central Party Committee - Head of the Central Commission for Mass Mobilization speaks at the Conference

Attending the Conference included representatives of ministries, agencies, mass organizations and scientists, economic experts, international organizations, especially beneficiaries of social policy credit.

Delegates attending the Conference

Social policy credit has lifted more than 2 million ethnic minority households out of poverty as of August 31. It has also created jobs for more than 162,000 ethnic minority workers, including some 16,000 people working abroad on fixed-term contracts, and funded the construction of 215,000 houses for those from difficult backgrounds, Mr. Duong Quyet Thang said.

About 211,000 disadvantaged ethnic minority students have been offered student loans to pursue further education, he also added. In addition, 1,3 million water supply and environmental sanitation facilities and 215,000 social houses have been built under the policy credit programs.

VBSP General Director – Mr. Duong Quyet Thang reports on the results of implementation of social policy credit programs for ethnic minorities in Vietnam

More than 1.4 million borrowers from the VBSP were ethnic minority people who have taken out approximately 136 trillion VND (5.84 billion USD) in soft loans, and outstanding balance for ethnic minority people at the bank exceeds 49.6 trillion VND, accounting for 24.8 percent of the total outstanding balance, the director general said.

Social policy credit has changed their way of thinking, allowing many ethnic minority people to overcome their inferiority complex to apply for a loan, and successfully develop their own business. The preferential credit has also helped hampered loan sharks, he said.

According to Politburo member and Head of the Party Central Committee’s Commission for Mass Mobilization – Ms. Truong Thi Mai, preferential credit policy is among 54 policies directly providing for ethnic minority people, which is also a highlight in sustainable poverty reduction.

The statistics from the Ministry of Labor, Invalids and Social Affairs showed that the poverty rate of Vietnam was reduced from 14.75% to 4.25% in the 2007 – 2015 period and from 8.23% to 5.35% in the 2016 – 2018 period.

SBV Governor cum Chairman of VBSP – Mr. Le Minh Hung speaks at the Conference

Governor of the State Bank of Vietnam – Mr. Le Minh Hung said the central bank has submitted to the Government a finance proposal which outlines solutions to provide easier access to capital and financial services for poor and vulnerable people in remote areas. The solutions include the application of new technologies at a low cost to better serve people in these disadvantaged areas, he said.

In the future, the VBSP will continue to carry out preferential credit policies for needy households and ethnic minority people, particularly in the Southwest region, Central Highlands and Northwest region.