Part 4 - Belief and Aspiration

It can be said that policy capital has played an important role in helping many disadvantaged people rise out of poverty, create stable lives, develop sustainably and affirm the belief in a superior policy.

Mr. Le Hong Khanh in Village 9, Da Kho Commune, Da Teh District inspects the green-skinned pomelo orchard

A Powerful Tool for Development

Although far from the major economic centers of the province and with a high percentage of ethnic minority populations, the credit activities at the commune level in An Nhon, Da Teh District have achieved good results. The policy capital has been used appropriately by the people, which has led to job creation, investment in family economic development, and contributed to sustainable poverty reduction.

Additionally, borrowers have committed to repaying both the principal and interest on time, facilitating the timely settlement of overdue loans and minimizing bad debts and overdue loans. The quality of credit activities in the commune has consistently met its tasks, with no overdue loans occurring for many years.

According to Luu Van Phuong - Chairman of the commune's People's Committee, after 10 years of implementing Directive No. 40-CT/TW, the commune's Party committee and local government have gained experience in managing the credit policy activities at the village level. They have maintained close ties with the people to promote communication efforts, helping the people to change their perceptions, and thereby boosting production using preferential loans with high effectiveness.

In Da Kho Commune, Da Teh District, many farmers have boldly switched to growing higher-value crops such as durian and pomelos. Mr. Le Hong Khanh, a resident of Village 9 in Da Kho, was one of the pioneers of pomelo cultivation in the area. According to Mr. Khanh, driven by the determination to improve his life and develop his family's economy, he and many other households in the commune transitioned from growing short-term crops to cultivating silkworms and fruit trees such as pomelos, particularly off-season pomelos, which have brought high economic returns.

Mr. Khanh also established the Green-Skinned Pomelo Cooperative and became the Chairman, aiming to strengthen production links with other households for more convenient product consumption. The cooperative's members also formed a lending group to efficiently utilize policy credit capital for production and business activities.

It is evident that the efforts of the people and the entire political system in Da Teh District, together with the social policy credit programs, have contributed to the reduction of the poverty rate in the district from 3.37% in 2015 to 1.63% in 2020. By the end of 2023, the poverty rate had dropped to 0.85%. Policy capital also played a role in successfully helping Da Teh achieve recognition as a new rural district in 2019, with all 8 communes attaining new rural standards and continuing to improve their rural development.

Alongside the local socio-economic development solutions and government support policies, VBSP’s preferential loans have truly been a "lever", helping many families escape poverty and stabilize their lives. A clear example of this is the progress in Phước Lộc Commune, one of the most difficult communes in Da Huoai District with a large ethnic minority population.

Checking the Operations of Borrowers in Da Huoai District

At the end of 2013, the poverty rate in Phuoc Loc Commune was 22.76%, and the near-poverty rate was 4.55% of the total 659 households in the commune at that time. Among them, the poverty rate for ethnic minority households was 20%, and the near-poverty rate for ethnic minority households was 4.4% of the 527 households. After 10 years, by the end of 2023, the poverty rate in Phuoc Loc had decreased to 0.95%, and the near-poverty rate had dropped to 0.14%.

Over the past 10 years, VBSP Da Huoai District has provided 13 policy credit programs to 4,851 customers, with a total outstanding loan balance of nearly VND 387 billion. As of September 30, 2024, the total capital of VBSP in the district was VND 388.694 billion, an increase of over 9% compared to the beginning of the year. Of this, 74.7% came from central government funds, 15.1% from local mobilized funds and 10.2% from local trust funds. The lending turnover reached VND 95.05 billion with 1,716 customers benefiting from loans. The loan repayment turnover for the year was VND 64.376 billion. The quality of credit and social transaction activities were rated as good, with 143 out of 146 Savings and Credit Groups rated as good and 6 out of 9 communes and towns with no overdue debts.

Enhancing professional skills, promoting responsibility

With the notable achievements over the past 22 years, social policy credit has become a crucial resource in successfully implementing the Economic and Social Development Strategy, the Sustainable Poverty Reduction Program, and building new rural areas in Lam Dong province. To achieve these results, the officers of VBSP, the entrusted mass organizations and the management committees of the Savings and Credit Groups have continuously improved their professional skills, gradually building a professional and effective policy credit operation model and network.

The Party committees and local authorities have become more aware of the role and position of social policy credit in achieving the goals of poverty reduction, job creation, new rural development and social welfare. The leadership of the People's Committees at the commune level has also taken more responsibility in investigating and confirming eligible borrowers, regularly directing the process of selecting loan recipients while reinforcing and enhancing the quality of credit at the grassroots level.

The Vietnam Fatherland Front (VFF) and other entrusted mass organizations at all levels have shown more interest in social policy credit activities, actively disseminating the Party and State's policies on social policy credit. They have consistently worked to improve the quality of credit, especially strengthening and enhancing the effectiveness of the Savings and Loan Groups; they also regularly oversee the selection of loan recipients, manage overdue loans, unpaid interest, and improve the monitoring and guidance of borrowers to ensure that the loan is used effectively and for its intended purpose. Additionally, effective initiatives have been recognized to enhance social policy credit activities.

However, the state’s resources are limited, and while the government must meet multiple development goals simultaneously, the investment level for national target programs in general and social policy credit in particular has not fully met actual needs. Fundraising from organizations and individuals to supplement VBSP’s lending capital remains low.

Therefore, the mission of the Party committees, local authorities, VFF and social organizations in Lam Dong is to continuously improve professional skills and responsibility to ensure the continued success of policy credit, especially in maintaining transparency in the selection of poor households for loans.

Ms. Nguyen Thi Ngoc Thu, Director of VBSP Lam Dong branch, shared: With the motto “Understanding the people’s hearts, serving with dedication”, in the future, the unit will continue to advise the Party committees, local governments, and the Board of Directors of VBSP at all levels to effectively implement social policy credit programs associated with national target programs in the province.

VBSP’s staff will improve their management capacity and strengthen internal control, monitoring of social policy credit activities, the entrusted activities of mass organizations and the use of loan funds by borrowers. With the motto "Each VBSP staff member and each staff member of an entrusted organization is an advocate", the branch will also enhance staff training, streamline and develop personnel to effectively implement social policy credit work in the new context.

Le Hoa – Anh Nguyet – Van Bau