MINISTRY OF LABORS, INVALID AND SOCIAL AFFAIRS EVALUATION ON CREDIT PROGRAM OF POOR HOUSEHOLDS; CREDIT PROGRAM OF JOB CREATION; CREDIT PRGRAM FOR MIGRANT LABOUR

To implement the task of the Government in the course of poverty reduction, since the establishment in 2003, Vietnam Bank for Social Policies has been conducting the policy credit channels for poverty alleviation such as the credit program for poor h

Evaluating the five-year operation achievements of VBSP, Ministry of Labor, Invalids and Social Affairs has the report on the result and impact of the policy credit channel in performing the poverty reduction programs.

The program of lending to poor households

In the periods 2001-2005, VBSP provided preferential loans for more than 4 million poor households. The average loan size increased from VND 2.2 million in 2001 to VND 4.2 million in 2005. The total outstanding loans for poor households reached VND 14,891 billion as of December 31st 2005. The statistics showed that nearly 75% of poor households accessed to policy credit, making up 15.8% of total households in the whole country. In 2006-2007, VBSP extended preferential loans to more than 2 million poor households, reaching 47.7% of the five-year plan target. The VBSP credit operation has made great contribution to the rate of poverty reduction in the whole country from 20% in early 2006 to 14.8% in late 2007.

VBSP's policy credit is considered as the effective policy gaining popularity and meeting the necessary needs of the poor and other social policy beneficiaries. The loan procedures have been simplified, helping the poor easily approaching preferential credit. With the method of entrusted lending via mass organizations such as Women Union, Farmer Union, War Veteran Union and Youth Union, the VBSP credit is much more closer to the poor, improving capital deficiency for poor households. The loan size gradually increases, basically satisfying the borrowing needs of the poor. The overdue debt rate is  lower and lower.

The credit program for job creation:

The credit channel for job generation has made the important contribution to creating employment and alleviating poverty. The National Job Fund is distributed budget annually, MOLISA gives priority of distributing fund source in lending to job creation in provinces with high poverty rate, average province is allocated from VND 3 to 4 billion per year.

In the total loan portfolio, the agricultural, forestry and fishing areas reach 76%, in which over 50% of loans for animal husbandry, nearly 50% for cultivation, mainly industrial and fruit trees, leading to 1,520, 000 jobs in animal husbandary, mainly in cattle breeding, fruit and industrial trees, over 130,000 jobs in forestation, nearly 13,000 jobs in fishery areas and nearly 260,000 job in handicraft industry.

The credit program for migrant labours:

The statistics showed that total number of migrant employees working abroad from 2002 to 2008 was 399,350. In 2004 - 2006, VBSP branches implemented the credit program efficiently such as Hoa Binh with VND 143,444 million, Tuyen Quang with VND 11,042 million, Quang Binh with VND 31,519 million, Hai Duong with VND 22,984 million, Bac Lieu with VND 13,881 million, Quang Ninh with VND 10,533 million etc.

Participating into the steering board of migrant workers created favorable conditions for VBSP to understand information on the Vietnamese labor market and situation abroad, leading to suitable policy adjustment, timely helping policy beneficiaries reach VBSP's loans.