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Updated: 2019-06-13 16:44:13

Nourishing flow of capital for the poor

(VBSP News) From a poor province, Binh Dinh has become a developed area with a large number of shrimp ponds, cassava, acacia orchards, etc thanks to preferential capital of VBSP. The increasing flow of capital and diligence of poor households and policy beneficiaries has changed their own lives, contributes to bringing prosperity and developing local economy.

Mr. Duong Quyet Thang - General Director discusses about situation of using loans of members with the Head of Savings and Credit Group at Canh Thuan Commune Transaction Office

The flow of capital changes awareness

As to Ms. Le Thi Me – Head of Savings and Credit Group of Ha Van village, it’s very special to meet VBSP's delegations led by Mr. Duong Quyet Thang - General Director of VBSP at Canh Thuan Commune Transaction Point. She confided that she could not forget the days living in poverty, especially after her husband - the main pillar of the family died 4 years ago. She had to bring up 2 children by herself and worked hard but the worry about bread and butter never stops. Although she had 3 hectares of hill land, she was not brave enough toborrow money from VBSP. However, recently, she knew that there was no other way to develop the economy without investing in production. Therefore, along with the cow provided by the State, she boldly borrowed VND 30 million from VBSP to plant acacia and raise cows. In her free time, she works as a worker to earn more money to support her life and raise her children. Thanks to her good care, the cows reproduced and the acacia was sold well. At the end of 2017, Ms. Me voluntarily left the list of poor households. She affirmed that all the things her family has today are thanks to VBSP’s support, “My family has received a lot of support from VBSP. Now my family's economy is better, we are able to become self-reliant, so I want to get out of the list of poor households so that other disadvantaged households can instead receive supports. ”

She is not the only one asking to get out of the list of poor households in Canh Thuan, there are many other households who used to do that to share the benefits of the Government for the others. Because they understand that in a 30a mountainous commune like Canh Thuan, there are 4 ethnic groups of Kinh, Bana, Cham and Thai living together, accounting for 852/992 households of the commune; poverty rate is 59.1%; near poor households account for 38.5%. Thus, credit policy is a needed condition to help people change their life.

Not only being a typical model in using preferential loans to escape from poverty, Ms. Me is also trusted to be the typical local Head of Savings and Credit group. The Savings and Credit group managed by Ms. Me has 60 members with outstanding loans of over VND 2.5 billion, especially having no overdue and frozen debts for many years.

Mr. Duong Quyet Thang - General Director listens to a Head of Savings and Credit Group on how to effectively manage loans

From the case of Ms. Me, in recent years, many people borrowed loans for economic development. Thanks to VBSP’s policy of allocating capital to difficult areas, the credit flow to the commune is stronger and more popular, which harmonizes with the commune's socio-economic development plan. By the end of April 2019, total outstanding loans of the whole commune accountfor nearly VND 29 billion with 808 active borrowers. Policy credit capital has also covered 8/8 villages in the whole commune.

 The General Director takes part in the meeting between VBSP's staff, Group Leaders and local mass organizations

Witnessing the 13 flowsof credit capital with good credit quality, Mr. Duong Quyet Thang - General Director featured the role of local authorities, mass organizations and Heads of the Savings and Credit Group in coordinating smoothly with VBSP to provide the poor and policy beneficiaries with State’s fund. Especially, at a difficult commune like Canh Thuan, the enthusiasm of the government and mass organizations contribute to creating a sense of saving for the people and increasing the mobilized capital for VBSP. By the end of April 2019, the total mobilized capital in the province reached more than VND 1.2 billion, an increase of VND 318 million compared to the beginning of the year, achieving 110% of the plan. Savings of residents and deposits of organizations and individuals were VND 782 million, an increase of 292 million compared to the beginning of the year, achieving 120% of the plan.

Thanks to the preferential credit programs, the gap between rich and poor people has been narrowed so that the poor can gradually improve the quality of life, contributing to the successful implementation of socio-economic development objectives and speeding up progress of new rural construction. In 2018, policy capital contributed to the development of production and improvement of life, contributing to reducing poverty rate from 65% in 2018 to 59% in 2019.

Changing in province's economy and society

Regarding Binh Dinh province, credit capital is considered as an important solution contributing to the achievement of the major objectives in the province's socio-economic development strategy including: economic restructuring, social security policy and job creation. Credit policy is particularly significant in three poor mountainous districts of Program 30a, 26 extremely difficult communes of Program 135 in Phase III, 47 extremely difficult villages in 14 communes of Region II, 18 extremely difficult communes in coastal areas and islands, and 59 communes in difficult areas. Currently, VBSP Binh Dinh province is implementing 19 preferential credit programs, total outstanding loans up to now reachVND 3,580 billion with 92,249 active borrowers and the average outstanding loan is VND 38.81 million / household.

The impacts of policy capital become clearer when looking back on the journey of operation over the past 16 years, there are 594,225 turns of poor households and policy beneficiaries across the province borrowing preferential loans for business development; in which 215,941 poor households; 33,891 near-poor households and 8,841 newly escaped from poverty households invested in production and business with the aim of sustainably escaping from poverty and getting rich; 35,012 borrowersof job creation program are helped; 4,537 households of ethnic minority do business and improve their lives; 5,589 poor households renew and repair houses; over 157,969 turns of disadvantaged students pay tuition fee. By the end of 2018, the number of poor households in the province decreased to 56,258; accounting for 8.82% of the total households.

At the meeting with Mr. Nguyen Thanh Tung, Member of the Party Central Committee, Secretary of the Provincial Party Committee - Chairman of People's Council of Binh Dinh Province, Mr. Duong Quyet Thang - General Director thanked the Provincial Party Committee, People's Council, Provincial People's Committee and mass organizationsfor having paid attention to the implementation of policy credit programs. Up to now, the total entrusted capital from the local budget reached over VND 108 billion, VBSP in province and districts also are allocated land for building offices.

Towards the preliminary review of 5 years of implementing Directive No. 40-CT / TW, General Director of VBSP asked the Provincial Party Committee, Provincial People's Committee and mass organizations to coordinate with VBSP Binh Dinh province to organize the 5-year preliminary review meeting of implementing Directive No. 40-CT / TW.

On behalf of the leaders of Binh Dinh province, Mr. Nguyen Thanh Tung - Secretary of the Provincial Party Committee recognized and appreciated the support of VBSP for poor households and other policy beneficiaries over the past 16 years. Specifically, VBSP timely supports capital for poor, near poor households and other policy beneficiaries to develop production, get jobs, train human resources, improve living conditions and contribute to poverty reduction, social security, political stability, and socio-economic development in the province. Provincial Party Committee and Provincial People's Committee will continue to coordinate with VBSP to improve the quality of credit policy in the future. The General Director also directs the leaders of VBSP Binh Dinh province to realize the operation plan in 2019 and improve the effectiveness of policy credit in the province.

Mr Duong Quyet Thang - General Director  workes with the leaders of VBSP Binh Dinh 

Especially, 2019 is the year of implementing the preliminary review of the 5-year implementation of Directive No. 40-CT / TW of the Party Central Committee's Secretariat on strengthening the leadership of the Party to credit social policy. Therefore, the General Director emphasized that VBSP Binh Dinh province should continue to monitor and perform effectively Directive 40 of entrusting local budget to VBSP to lend to policy beneficiaries and well implement the preliminary plan. The General Director asked VBSP Binh Dinh province to closely follow and take advantage of the interest and direction of local authorities on implementing policies to ensure social security and sustainable poverty reduction.

Besides, it is necessary to regularly check and correct the errors and shortcomings of the units after inspection to improve the quality of credit activity, implement measures of consolidating and improving the quality of operations and credit, lending entrustment activities, especially the quality of mass organizations and Savings and Credit groups, etc.

The power to complete tasks of 2019 successfully and the way forward are concluded by Mr. Duong Quyet Thang - General Director in a brief sentence "We must be united and determined to perform the tasks”.




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