Help rural farmers reduce poverty

VBSP’s achievements is significant in recent years. Particularly for farmers in Quang Ngai province, VBSP’s lending policies is also much more meaningful. These loans become a bridge to help people repulse poverty and get rich.

“Midwife” of YouthUnion

After many years with occupation of bus driver, in 2006, Mr. Mai Van Lieu in Dien Truong hamlet, Pho Khanh commune (Duc Pho) decided to go back to his homeland to set up his owned business. With the money from selling his vehicles, adding with VND 80 million lent by VBSP in his job creation project, Mr. Lieu built 4 goby ponds with cement on an area of 420 square meters. He sold more than two tons of fish. After deducting expenses, he earned profit of VND 400 – 500 million annually. Thanks to raising fish, Mr. Lieu not only enriches his family, but also creates job for 3 labors with the wage of VND 1.5 million per labor per month.

Like Mr. Lieu, Mr. Nguyen Thanh Loc in An Thach hamlet, Pho An commune (Duc Pho) also gets rich thanks to VND 30 million lent by VBSP. Up to now, he has owned a large mechanical workshop. He is also considered to be one of the best enrichment youth members in the local.

The secretary of Ho Chi Minh Communist Youth Union in Pho An commune, Mr. Nguyen Minh Ha told: “In past time, the commune Youth Union in coordination with VBSP have supported hundreds of youth members to borrow loans with the total amount of VND 500 million. VBSP actually becomes “midwife” to help many youth members enhance their social status in life and set themselves up in business.  

Not only sponsoring the youth to get rich, VBSP’s Quang Ngai branch also helps many poor labors in six mountainous districts of the province go working abroad. According to Quang Ngai Department of Labor, War Invalids and Social Affairs, these districts have completed the procedures for 606 overseas workers as of the end of 2009. 

According to the information from the provincial job centre: these working abroad workers also now have stable jobs and income, typically workers in Malaysia have income from VND 5 million to VND 7.5 million per worker per month; the income of workers in South Korea is from VND 20 million to VND 23 million per worker per month. Many workers have sent hundreds of VND million to their families,  helping their families develop their household economy, repair their houses and buy some furniture .   

Going along with students

From the early 2009 until now, VBSP’s Quang Ngai branch has lent more than VND 3 billion to more than 700 households; therefore their children have had better studying conditions. 

Mr. Lam Van Hoc - Director of VBSP’s Quang Ngai branch said: “We are expeditiously deploying this lending program to serve students’ studying. Many transaction offices have received savings and credit group’s documents and have completed procedures to make disbursement”.

In 2009, the total outstanding loan of the credit programs implemented by VBSP’s Quang Ngai branch’s reached more than VND 1,151 billion, increasing 41% compared with that of 2008. In particular, the branch implemented interest rate supporting loans with the total outstanding loan of more than VND 307 billion. Of which, some credit programs reaches fairly well outstanding loan of growth rate such as lending to poor households, disadvantaged students, job creation and overseas workers.    

In 2010, the branch shall strive for increasing the total outstanding loan of more than VND 1,627 billion; raising the average outstanding loan of more than VND 15 million per household; controlling the overdue debt rate under 2% of total outstanding loan; reaching more than 95% of the average debt collection rate. Besides, the branch shall also speed up the capital mobilization of the Head Office to execute lending programs according to the Government’s assignment. In addition, the branch shall also concentrate on entrusted funds of the local government and mobilize capital of subsidized interest rate by the Head Office on speeding up other lending programs with the total incremental outstanding loan of VND 261 billion.  

 KTNT