Eighteen years of journey for the happiness of the poor

(VBSP News) The credit efficiency is assessed not only by the growth but also the humanitarian responsibility of the Government assigning VBSP to help disadvantaged people escape from poverty sustainably. The story of credit for the past 18 years of VBSP, therefore, has its own characteristics.

Over the past 18 years, VBSP have always accompanied the poor and other disadvantaged groups on their journey to escape from poverty

Born and raised in Hang Chu village, Hang Chu commune, Bac Yen district, Son La province, Mr. Giang A Dua understands more than anyone the poverty and difficulty of the residents there. The terrain is tough, the weather is harsh, people's lives without proper capital and production methods will be very difficult. Because of that, Mr. Giang A Dua has chosen to work for VBSP in Bac Yen district with the desire to help them escape from poverty.

From 2015 up to now, Mr. Giang A Dua has been in charge of 12 communes/15 communes of the district. As of 2017, being in charge of 4 communes of Muong Khoa, Phieng Con, Xim Vang and Hang Dong, Mr. Giang A Dua raised the total outstanding loans to VND 33 billion with 1,186 borrowers, increased by VND 2.6 billion compared to December 31, 2016. Overdue debt was VND 147.4 million, decreased by VND 8.6 million compared to December 31, 2016. In 2018, Giang A Dua raised the outstanding loans of 4 communes Chim Van, Phieng Ban, Xim Vang and Hang Dong to VND 65.7 billion, an increase of nearly VND 7 billion compared to the end of 2017. As of April 30, 2020, Mr. Giang A Dua is in charge of 4 communes Song Pe, Pac Nga, Phieng Con and Hua Nhan with a total outstanding loan of nearly VND 81 billion, an increase of VND 40 billion compared to the same period in 2015. The number of active customers is 2,140 households, the average loan balance per household is VND 37.7 million.

The difficulty of making a policy credit is that it requires the hard work and dedication to the job. In particular, in a difficult mountainous district with low literacy levels, natural disasters and epidemics, in order to effectively bring capital to people in need, Mr. Giang A Dua always knows that he has to rely on the party committees, local authorities, mass organizations, savings and credit groups, etc.

For example, Ms. Dinh Thi Thu Hien - Director of VBSP in Kbang district, Gia Lai province said in the past, being a credit officer was very hard because she had to walk and climb mountains. Kon Ple commune is located 85km from the district center. Therefore, when there is a commune transaction session, they have to hire a UAZ car, then walk until noon to the first village, and arrive at the commune at 2:00 pm. After disbursing loans, the VBSP staff ate instant noodles. "There are many difficulties, but I and many other officers, have never been discouraged," said Ms. Hien.

Even now, being the Director of VBSP in the district, Ms. Dinh Thi Thu Hien is always working hard to join in transaction activities. As a result, the unit excellently performed the task of planning, consolidating and improving credit quality. VBSP in Kbang district has always been a unit with good credit quality for many years, specifically, overdue debt rate is only 0.03%, the rate of interest collection is 100%, debt collection rate is 93%. Happily, after accessing loans for economic development, people not only have a change in economic development awareness, but also contribute to stabilizing the local political and security situation.

The policy credit story is therefore not only the number of loans but also the companionship of the poor overcoming difficulties. Only in the first months of 2020, in the face of complicated weather changes, especially drought and saltwater intrusion in the Mekong River Delta, VBSP has promptly implemented a policy to support the affected people. The credit activity during the Covid-19 pandemic has contributed to helping the poor, disadvantaged groups maintain and expand production, improve their income and quality of life.

Over the past 18 years, more than 38 million turns of the poor and other disadvantaged groups have had access to policy capital. Policy credit capital has been brought to 100% of communes, wards and towns nationwide; in which, focus on lending to communes in ethnic minority areas, extremely disadvantaged areas, remote areas, communes to build new countryside, etc., contributing to more than 6 million households overcoming the poverty line; creating jobs for more than 4.2 million workers; helping more than 118 migrant workers abroad for limited terms, nearly 3.7 million disadvantaged students; building more than 13.8 million rural clean water and sanitation works, nearly 600 thousand houses for poor households and other disadvantaged groups, etc.

Policy credit has been supporting localities in the country in implementing poverty reduction. Up to now, nearly 6.5 million poor, near-poor households and other disadvantaged groups have been borrowing loans with total outstanding loans of over VND 221.5 trillion.

vbsp.org.vn