Da Nang: Strongly promoting policy credit resources

In recent times, policy credit has been transferred to 100% of wards and communes in Da Nang city, thereby, the poor and other policy beneficiaries have opportunities to access to policy credit programs...

In recent times, policy credit capital has been transferred to 100% of wards and communes, thereby, the poor and other policy beneficiaries have opportunities to access to preferential loans

10 years ago, Ms. To Thi Thu Thuy (in Group 35, Nai Hien Dong Ward, Son Tra District) decided to take a loan of VND 50 million from VBSP to open a groceries store. Before taking loan, her family's monthly income was only about VND 2 million because of unstable work. Fortunately, since opening the store, the source of customers has been stable, the business has become more and more favorable. So, after 3 years, Ms. Thuy has paid off all her debt. In 2018, Ms. Thuy continued to take another loan of VND 70 million. After 2 years, Ms. Thuy paid off all her debt and continued to borrow VND 100 million to develop her groceries store into a Huy Chuong beer distributor. Her business is developing well, creating jobs for 4 employees and 1 accountant. Ms. Thuy also opens a household goods store and is creating jobs for 3 women.

“Thanks to preferential loans and VBSP’s support, currently, my family has 2 stable businesses, owns a truck and creates jobs for 7 workers with an income of 6 - 10 million VND/person/month. My family's life has improved significantly, the house is spacious and the economy is developing sustainably. Thanks to the business results, I was elected by local people as the Head of Residential Group 35, was introduced by the residential area Party cell to join the Party and become a member of the Savings and Credit Group. I use my knowledge and experience to support local women effectively use preferential loans”, Ms. Thuy said.

Mr. Thai Van Cong’s family (in Group 102, Hoa Minh Ward, Lien Chieu District) has been involved in flower growing for more than 10 years. The more they expand production, the more capital they need. Therefore, Mr. Cong and his wife applied for a loan at the People's Credit Fund of Lien Chieu District and were disbursed twice, each time VND 100 million in October 2022 and November 2023, corresponding to 2 workers. Preferential credit loan has helped his family have more funds to cover the costs of materials and supplies, creating regular jobs for 6 workers as well as 2-4 seasonal workers with an income of 300,000 VND/day. It is known that the scale of Mr. Cong's flower garden is about 40,000 pots/year with a variety of species such as primroses, begonias, and sunflowers.

The above production and business models are proof of the effectiveness of social policy credit loans, especially after 10 years of implementing Directive No. 40-CT/TW, creating a solid foundation for the poor and policy beneficiaries to get out of poverty, stabilize their lives and develop the economy. According to VBSP Da Nang Provincial Branch, Da Nang city is implementing 26 credit programs (14 central policy credit programs and 12 local policy credit programs). The total loan turnover from the beginning of 2014 to date has reached VND 11,090 billion with 247,164 poor households, near-poor households and other policy beneficiaries receiving loans; debt collection turnover has reached VND 7,718 billion. Policy credit has made contribution in the Poverty Reduction Project for the period 2016 - 2020, with 20,293 households getting out of poverty (including 6,514 poor households according to the Central standard); 140,400 workers created jobs; 10,946 disadvantaged students having chances of schooling; 49,795 works of rural water and environmental sanitation built.

After 10 years of implementing Directive No. 40-CT/TW, it can be affirmed that this is a correct policy of the Party and State, meeting the aspirations of the people, strengthening people's trust in the Party and State, contributing to achieving the goal of rapid and sustainable poverty reduction. The achievements of policy credit above can be considered a bright spot and one of the pillars in the system of poverty reduction policies of Vietnam.

The superiority and unique characteristics of the VBSP, different from local credit institutions, is to promote the strength of the entire political system. Social policy credit contributes to limiting usury and "black credit", helping the poor and other social policy subjects to have conditions to develop production and improve their lives.

Mr. Doan Ngoc Chung - Director of VBSP Da Nang Provincial Branch said that in the coming time, the branch will continue to coordinate with the city's departments, branches and sectors to advise on the development of new credit policies suitable to the needs of the people, first of all, programs such as lending to civil servants, disadvantaged workers.

The branch proactively improves its operational capacity, builds a team of highly qualified and ethical officers, continues to coordinate with the government and unions at all levels to effectively deploy social policy credit programs, improve credit quality, contributing to the city's effective implementation of poverty reduction, job creation and social security.

Mai Que