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Updated: 2018-07-08 13:54:11

Boost the poor access inclusuve finance to improve livelihood

(VBSP News) In the past years, Thai Nguyen has been known as one of the fastest-growing provinces in terms of economic development. There have been many practical activities to help poor households and policy families such as mobilization of local government and enterprises to transfer part of capital and budget to VBSP for providing loans. Up to now, of the total capital of VND 3,200 billion that VBSP is managing, over VND 74 billion are transferred from local budget and enterprises.

Với số tiền vay 50 triệu đồng, gia đình anh Nguyễn Mạnh Toán ở xóm Vo, xã Tân Thành, huyện Phú Bình đầu tư ngay vào việc chăn nuôi

With a loan of VND 50 million, Mr. Nguyen Manh's family in Vo village, Tan Thanh commune, Phu Binh district invested in livestock

According to Le Van Hong, Deputy Director of VBSP Thai Nguyen, despite the fact that provincial and local authorities and enterprises’ budgets have been transferred to VBSP to make loans, account for only 2.3% of total capital of the branch but has many practical implications. This shows interest of both political system and the business community for disadvantaged households, households whose land is recovered for the project to have access to capital with preferential interest rates.

Mr. Tran Duc Hanh - Chairman and CEO of Marphavet Group, Pho Yen Town said: In response to mobilization of local authorities and VBSP, in 2016, the Group transferred VND 200 million to VBSP to provide loans for job creation for families whose land is recovered. Personally, I always say that Marphavet is as it is today thanks to a considerable attention, help and support from local authorities and people. In addition, as far as I know, in recent years, VBSP in general, VBSP in particular are always operating effectively, lending to the right people, managing capital resources closely, helping people to have conditions to escape poverty so we absolutely trust VBSP when transferring part of our funds to provide loans. I hope more and more businesses will support this way.

It is known that of the total VND 74 billion local capital entrusted through VBSP, there are over VND 11 billion of capital of enterprises; the rest from the provincial and districts, cities budget. In 2018 alone, local budgets will be allocated at VND 15 billion, of which the provincial budget will be VND 5 billion, the rest will be from 9 districts, towns. Up to the end of the first quarter, the province has transferred VND 9.3 billion to VBSP, the rest will be transferred in the coming time.

Từ nguồn vốn vay của NHCSXH, nhiều hộ nghèo ở các huyện, thị của tỉnh Thái Nguyên đầu tư vào trồng, chăm sóc và chế biến chè

From the loans of VBSP, many poor households in districts and towns of Thai Nguyen province has invested in planting, caring and processing tea.

Previously, according to Directive No. 40 of the Party Secretariat on strengthening the Party leadership on social policy credit, in February 2016, the provincial People's Committee issued an official letter requesting the People's Committees of districts, cities and towns to deduct a part of the budget and encourages businesses in the area to transfer funds to VBSP to lend to poor households and other policy beneficiaries. Accordingly, the provincial People's Committee proposed that each district, city, every year to transfer from VND 500 million to 1 billion to VBSP at the same level. For businesses that use agricultural land, allocate a portion of their capital to support landless farmers with loans, in order to create conditions for households to stabilize their livelihoods.

It can be seen, the initial results in responding to the "call" of the province has received the sympathy and support of many businesses. Among these, Nui Phao Mineral Exploitation and Processing Limited Company has spent VND 6 billion. However, compared to the number of over 5,700 enterprises operating in the area, the figure of nearly 20 enterprises has transferred money to VBSP for lending is still very modest. Meanwhile, according to the provincial People's Committee, by the end of 2017, the province still has 9% poor households, equivalent to nearly 29 thousand households and nearly 9% near-poor households. Basically, only poor households are basically able to get loans, while for the near-poor and newly out-poor households, the percentage of households accessing is not high, as the total outstanding loans for the program to nearly poor households is only VND 600 billion amd just escaped from poverty is VND 190 billion. In addition, for job creation, after 4 consecutive years not allocated capital, by 2018 will be added with VND 10 billion, bringing the total outstanding loans of over VND 100 billion while the demand for this program is very large, estimated to need of about VND 1,000 billion to meet basic demand. In addition, loans oustanding to households for production and business in disadvantaged areas are only VND 446 billion, while the province has 99 communes in difficult areas ... This needs continued cooperation of the party committee at all levels, especially enterprises in the area.

Mr. Hoang Dinh Luc from Ban Lai village, Linh Thong commune, Dinh Hoa district said: “Previously, my family was very poor. I wanted to invest in the development of husbandry and cultivation but have no capital. Thank to a loan from VBSP, I have the condition to buy buffalo, then build house, clean water supply and rural environmental sanitation works, so I’m out of poverty”. However, getting out of poverty in the countryside is unmistakable, as with a single illness, it's easy to fall back into poverty. Therefore, it is a good policy to continue providing loans for newly escaped from poverty households.

Talking with us, Mr. Doan Van Tuan - Vice Chairman of Thai Nguyen People's Committee said that in the past years, policy credit has played a very important role in boosting local socio-economic development. Especially in the rural and remote areas, as well as in the process of building new rural areas, the living conditions of the people, especially the poor, are clearly changed. Thus, contributing significantly to the province completion of poverty reduction goal in each period. However, funding for many programs is still not enough to meet actual needs, to help those who have conditions to invest in production and business. Therefore, in the coming time, the province will continue to concern and direct the Party committees, local authorities and socio-political organizations and enterprises to work more closely with the VBSP in improving the amount of policy credit and allocate more funds to VBSP; To promote effective integration of agricultural, forestry and industrial extension programs with policy credit activities so that policy capital can maximize its effectiveness and help people to escape poverty sustainably.

Thu Hang



Poor Households

Lending to poor households 6,6%/year
Lending to poor households in 64 poor districts as stipulated by the Government Resolution No.30a in 2008 3,3%/year

Near Poor Households

Lending to near poor households 7,92%/year


Lending to disadvantaged students 6,6%/year

People in need of loans for job creation

Lending to business establishments owned by war invalids and handicapped persons 3,3%/year


Term Deposit Rate
Overnight 3,04%/year
1 week 3,23%/year
2 week 3,5%/year