The effectiveness of VBSP’s loans in helping the poor escape from poverty

(VBSP News) In Tay Ninh province, social policy credit activities have really made an important contribution to the effective implementation of guidelines, policies, goals and tasks proposed by the Party and State on sustainable poverty reduction, new rural construction, focusing on human resource development, ensuring social security, political stability, security and defense.

The model of raising loaches from the preferential capital of Mr. Nguyen Van Giau living in Thanh Binh commune, Tan Bien district

Borrowing VND 17 million from the VBSP Chau Thanh district, Mr. Pham Van Ut at Hoa Hop hamlet, Hoa Thanh commune was so happy. He bought two breeding cows. After three years, the herd of cows became to five, he bravely got out of poverty, now he has a herd of 20 cows, estimated total value more than VND 200 million, becoming a good farmer. He shared that: Every year, he selects healthy cows as breeding cows, the rest he sells to cover living expenses in his family. He sold more than 25 cows, got more than VND 500 million. “Thanks to VBSP’s loans with our diligence, we get out of poverty. I hope that poor people can access this capital" Mr.Ut said.

Not a poor household like Mr. Ut, Mr. Nguyen Van Giau's model of raising loaches in Thanh Binh commune, Tan Bien district has been visited by many farmers. With nearly a hectare of land, he invested about VND 60 million to buy loaches from the Mekong Delta for trial farming. When he felt positive, he applied for a loan introduced by the Commune Farmers' Association to access capital from the district VBSP with a loan of VND 100 million. He said: “I boldly invested in four more ponds, after 12 months, I harvested 3,500 loaches with 1.5kg/fish, selling for VND 220 thousand/kg, earning VND 330 million.

Mr. Dao Anh Tuan, Director of VBSP Tay Ninh branch said: In 2022, with assigned tasks, VBSP’s Tay Ninh branch had a total lending turnover of VND 1.250,4 billion, an increase of VND 513 billion compared to the previous year, with more than 37.8 thousand turns of poor households, near-poor households, post-poor households and other policy beneficiaries receiving loans, mainly focused on: VND 401.5 billion for job creation, job creation; VND 118 billion for loans to near-poor households; VND 42.5 billion for social housing loans; VND 412.4 billion for rural clean water and sanitation; isVND 174.8 billion for disadvantaged students; VND 23.4 billion  for poor households; VND 38.9 billion for post-poor households… In general, borrowers have awareness and be responsible for using capital effectively, have a sense of debt repayment, saving, rise out of poverty sustainably and replicate many effective production and business models.

After one year of implementing Resolution 11 of the Government, 3,672 customers has access to capital with a total outstanding loans reach more than VND 195 billion.  The capital have created jobs for 3,304 employees; helping 328 students to buy computers and equipment for learning; helping 100 households buy social housing or renovate and repair houses; supporting 40 non-public educational institutions and preschools to restore operations after the pandemic; helping three businesses borrow capital to restore production and business and pay wages to 10,710 employees, creating conditions for 7,669 employees to have jobs to increase their income.

Tay Ninh Provincial People's Committee assessed that social policy credit activities have made an important contribution to the effective implementation of guidelines, policies, goals and tasks set out by the Party and State on sustainable poverty reduction, building new rural areas, focusing on human resource development, ensuring social security, political stability, national defense-security and socio-economic development.

vbsp.org.vn