NAM DAN: Take advantage of policy credit for new rural development

(VBSP News) Despite being famous for being a land of “Talented people and sarced land” with cultural quintessences, full of famous monuments, landscapes and people, the homeland of President Ho Chi Minh, it is not easy for Nam Dan to conduct new rural development as consequences of Laos wind and frequent floods in September and October each year. Therefore, policy credit flow on the land of Nam Dan - Nghe An has become an important driving force to support the most vunerable people with the opportunity to immerse themselves in the general economic development of the district, bringing Nam Dan to become a new rural district in 2018 and get a dream to complete the criteria of a typical new rural district in 2020.

New rural face in Nam Dan 

Fight off poverty, promote economic development

Kim Lien commune in the early days of May is as beautiful as a painting. The countryside is still a pure rural areas, but the green color is full and it brings rich prosperity. Except for those who are unable to work, poor people and policy beneficiaries who want to improve livelihoods mostly have access to policy credit flow from VBSP. In the commune that has completed the new rural target since 2011, VBSP's capital channelling approach not only supports people to reduce poverty, but also helps integrate with the commune's economic development orientation in which people can aim at large-scale economic development models. 

The policy credit capital of the Government has been effectively implemented by VBSP in Nghe An and Nam Dan districts successfully channel the capital to the commune, helping people to have timely capital for production and business. 

Inside the newly built spacious house, still smelled of paint, Mr. Tran Khac Nhuong - a member of the War Veteran Association in Hoi 3 village, Kim Lien commune, recalling days in poverty, having land but no capital to invest, just cultivation to raise 2 children at school. Poverty was persistent with his family. Then, in 2012, an opportunity for economic development came as he got a loan of VND 30 million through War Veteran Association to raise pigs, chickens, ducks and cows. Accumulate every VND through pig, chicken, and cows selling, his family's economy started to stabilize. In 2014, Mr. Nhuong's family escaped poverty. Continue taking another loan for near poor households with VND 50 million, he expanded the scale of breeding and farming. The family economy kept raising steadily helping him to break down the old house that was not enough to cover the rain and sun and build a spacious house.

His happiness was multiplied when his two children were able to realize their dream of going to university by borrowing from VBSP’s student loan program. He proudly showed off, the eldest son of the family graduated from University of Transport in Ho Chi Minh City and get a stable job. The youngest son is a fourth year student of Thai Nguyen University of Agriculture and Forestry. "Currently, I owe VND 70 million from student loan program and VND 50 million from near poor households loan program. We were supported with not only low-interest loans, but we were also guided to do business effectively. Loans with monthly interest payment are very convenient. VBSP’s funding is truly a lifeline to help farmer families like us to escape poverty, take children school and build more spacious houses ”, Mr. Nhuong shared.

The business and production model built from preferential capital of Mr. Tran Khac Nhuong family. 

The model of farm economy which has been replicated by the commune together with policy funding from VBSP has helped many households not only step through poverty but also get rich. A good example is Mr. Nguyen Ha Trung's family in Sen 4 village, Kim Lien commune. From a loan of VND 50 million in 2008, Trung step by step developed a model of husbandry economy. More than 10 years of efforts to develop from small scale, then accumulate with the family's capital and support of friends and brothers, now his family has a farm of 3.5 hectares to dig fish ponds and raise pigs. At present, his farm has 30 sows, 300 pigs, each year sells 35 tons of pig meat on average. Along with 12 tons of fish each year, revenue from the farm every year reach billions of dong.

Such efficient business model is now quite a lot in Kim Lien. Policy credit not only shown its efficiency in economic development, preferential loans from VBSP are “lifebuoys” for many poor households in children schooling. Up to now, hundreds of households in the commune have borrowed from this program. Of these, many have graduated from school and gone to work; dozens are studying at colleges and universities. Most of the children, after graduating from the university, find jobs in agencies, businesses and industrial zones, so they have conditions to help their families. Many households have also escaped poverty, built spacious houses, local socio-economy has been improved.

In particular, loans from VBSP has helped thousands of households access preferential loans to escape from poverty and get rich. In 2018, there was 72 poor households, up to 2019, it decreases to 50 households; at present, the rate of poor households in the commune is just 0.26% (mainly elder and sole households). Loan outstandings of Kim Lien in Nam Dan district is VND 22.5 bilion with 10 active lending programs. Among collaborated mass organizations, War Veteran Association has highet loan outstanding, over VND 11 billion.

People in Van Dien, Kim Lien commune borrows to produce rice noodle (Photo: Thanh Le) 

Mr. Tran Le Chuong - Chairman of Kim Lien Commune People's Committee affirmed that VBSP's capital is very important to help people in Uncle Ho's hometown develop their economy, especially when their commune is striving to reach criteria of new rural development at the end of this year 2019. 

Kim Lien is not the only bright spot in the new rural development movement on Nam Dan. The continuous credit flow with increasing speed in recent years has spread in 23/23 communes of the district together with the plan of economic restructuring and diligent efforts of the people have made Nam Dan district to be the third district to finish the new rural development criteria at the beginning of 2018. 

Mainstreaming credit into each development requirement 

New rural development is the foundation for Nam Dan to rise up with a higher target when implementing Decision No. 17 / QD-TTg, dated January 4, 2019 of the Prime Minister on approving the pilot scheme "Building Nam Dan district, Nghe An province becomes a model of new rural district in the direction of cultural development associated with tourism in the stage of 2018 - 2025". However, this road is not easy when infrastructure for socio-economic development, transportation system, investment are weak etc. Besides, there are other criteria as bringing the poverty rate from 2.21% to 0%, restructuring production and formation of concentrated local key commodity production areas.

In order to accompany Nam Dan on the way to build new rural model, VBSP and the province has concentrated much on  the district. Total loan outstanding of VBSP Nam Dan disctric as of May 16, 2019 reached VND 307 billion. Total lending in the first 5 months of 2019 reached VND 63 billion, with 1,660 borrowing households, proving the fast and effective credit flow. In particular, VBSP continues to invest in loans for economic development to serve the goal of poverty reduction, with the focus on poor households, near-poor households and households that have just escaped from poverty with a total loan turnover of over VND 94 billion, accounting for 83% of total lending, with 2,100 active customers. Besides, funding for social security and new rural construction continues increase, with loan revenue reaching VND 20 billion, accounting for 18%. 85 households have replaced their temporary and dilapidated houses; 3,320 households living in rural areas borrowed money to build 3,290 facilities of clean water and hygienic toilets to help improve the living environment; 75 workers were created new jobs ... Loan outstandings through mass organizations in the district so far reached VND 304 billion, accounting for 99% of total outstanding loans, increased by VND 22 billion compared to the first quarter and early 2019 .

Local authorities also paid great attention to policy credit to the people. Within 5 years from the implementation of Directive 40 - increasing participation of local authorities in policy credit, total funding channeled from local sources to VBSP in Nam Dan district is VND 2.4 billion. 

With efforts from local authorities, VBSP and the rise of each individual, many poor households have been escaped from poverty, creating conditions for near poor households, disadvantaged households to access student loans to decrease economic burden to the families and encourage study movement in young people. This is also the direction to create stable jobs in the future and reduce redundant labor in the area. The lending programs for labor export, safe water and rural sanitation, near poor households, households that have just escaped from poverty etc, have created favorable conditions for people to have opportunities to get rich.

Mr. Nguyen Hong Son - Vice Chairman of Nam Dan District People's Committee affirmed that “Policy credit activities have made important contributions to the socio-economic development of Nam Dan district, people's lives are increasingly improved and stabilized, contributing to the successful implementation of the goal of poverty reduction and new rural development and then model of new rural.

At the recent Conference of Nghe An province, Deputy Prime Minister Vuong Dinh Hue affirmed that the implementation of the Prime Minister's Decision No. 17 / QD-TT on piloting Nam Dan into a new rural district model is meaningful as it is right on the occasion of 50th anniversary of the last letter Uncle Ho sent to his homeland (July 21, 1969), that said: "Nghe An should quickly turn into one of the best province in the North.

In addition to realize this goal, in 2019 and 2020, VBSP Nam Dan district also aims to ensure serving 100% of eligible poor and policy beneficiaries. The target of credit growth is from 10% to 13%, overdue rate is below 0.1% of the total outstanding loans. Simultaneously coordinate closely with local authorities and mass organizations to improve techniques and skills of loan utilization, cultivation and husbandry for borrowers to use capital for the right purpose and efficiency.

Viet Hai