The Mark of People-Centered Policies (Part 1 - A Lever for Sustainable Poverty Alleviation)

Over the 10 years of implementing Directive No. 40-CT/TW, dated November 22, 2014, issued by the Secretariat of the Party Central Committee on enhancing the Party’s leadership in social policy credit (Directive No. 40-CT/TW), Lam Dong province has mobilized substantial resources from both central and local levels to carry out social policy credit programs in the area.

From policy capital, many households have effectively invested in production, gradually overcoming poverty

The Entire Political System Joins the Effort

Based on the five-year review of Directive No. 40-CT/TW, on June 10, 2021, the Secretariat issued Conclusion No. 06-KL/TW, reaffirming the continuation of Directive No. 40-CT/TW. Both documents have profoundly transformed the awareness and actions of Party committees, government bodies, and mass organizations in promoting the implementation of social policy credit.

At all levels, Party committees and authorities in Lam Dong province have widely disseminated the content of Directive No. 40-CT/TW and Conclusion No. 06-KL/TW to officials, Party members, civil servants, public employees, union members and the general public.

This has enhanced the importance of social policy credit, recognizing the leadership and management of these programs as a core task in local socio-economic development plans. It has also facilitated the Vietnam Bank for Social Policies (VBSP) in fulfilling its assigned responsibilities and leveraging the collective strength of the political system to deliver social policy credit. These efforts have contributed to reducing the wealth gap, curbing usury and black credit, improving people's living standards, and promoting political stability, social order, and economic development.

Thanks to the participation of the entire political system, from the provincial to grassroots levels, there has been a unified approach that has led to significant improvements in the scale, resources and quality of social policy credit in Lam Dong.

Of the VND 632 billion in local budget capital entrusted to the provincial branch of VBSP, VND 354 billion came from the provincial budget, VND 260 billion from district budgets and VND 9.4 billion from the Vietnam Fatherland Front at both provincial (VND 5.4 billion) and district levels (VND 4 billion).

The total outstanding loans of 17 social policy credit programs in the province reached VND 5,972 billion, covering over 101,000 borrower households, an increase of VND 3,810 billion compared to 2014. The average annual credit growth rate was 10.8%.

A Comprehensive Transformation in New Rural Areas

As of June 30, 2024, VBSP Don Duong district mobilized total savings of VND 66.909 billion, an increase of VND 7.156 billion since the beginning of the year. Of this, individual and organizational deposits accounted for VND 31.185 billion, up by VND 3.575 billion, achieving 51.07% of the annual growth target. Savings mobilized through Savings and Credit Groups amounted to VND 35.724 billion, an increase of VND 3.580 billion. During the "Savings Month for the Poor" in 2024, VBSP Don Duong mobilized VND 10.921 billion from 221 customers.

Favorable credit resources for the poor and other policy beneficiaries have effectively contributed to the construction of new rural areas, advancing towards enhanced and exemplary rural models. Locally funded capital totaled VND 44.700 billion, an increase of VND 7.901 billion since the beginning of the year, including VND 19.944 billion from the district budget (up VND 3.301 billion) and VND 507 million entrusted by the district-level Vietnam Fatherland Front. As of June 30, 2024, the district’s VBSP had total outstanding loans of VND 465.901 billion, reflecting a growth rate of 6.62%.

Comprehensive Impact on Lam Dong Province

In Lam Dong province, social policy capital has played a crucial role in achieving the goal of sustainable poverty reduction. Between 2016 and 2020, the poverty rate in the province dropped from 6.67% to 0.9% by the end of 2021. Under the multidimensional poverty standard, the poverty rate from 2022 to 2025 decreased from 2.87% to 1.09% by the end of 2023. Among these, ethnic minority households accounted for 2,642 poor households (3.24%). Additionally, there were 7,433 near-poor households (2.07%), of which 4,483 were ethnic minority households (5.51%).

Policy capital has also contributed to 109 out of 111 communes being recognized as meeting new rural standards. Of these, 41 communes achieved advanced new rural status, 16 reached exemplary rural standards, and 5 districts met new rural district standards. This funding has driven economic restructuring, particularly in agriculture and rural areas, including ethnic minority regions. It has also helped ethnic minority communities shift their mindset, adopt better livelihoods, overcome inferiority complexes, and rise out of poverty to integrate with the broader community.

After a decade of concerted efforts by the entire political system, social policy credit has become a "bright spot" and a "pillar" in the framework of poverty reduction policies. It ensures social welfare, meeting the aspirations of the people, especially the poor and vulnerable groups. It empowers disadvantaged individuals to overcome difficulties, promoting self-reliance and resilience, while implementing a comprehensive and humane social security policy of the Party and State.

Speaking at the conference reviewing 10 years of implementing Directive No. 40-CT/TW in Hanoi on August 14, 2024, Mr. Pham Minh Chinh - Prime Minister of Vietnam highlighted the achievements. He noted that with strong leadership and coordination across the political system, the directive has been effectively integrated into daily life, addressing the people's needs and leveraging the political system's collective strength. It has significantly contributed to achieving the Party and State’s goals for poverty reduction, job creation, human resource development, and economic growth within the framework of socialist-oriented development, thereby strengthening public trust in the Party and State.

Social policy credit administered by VBSP has comprehensively addressed the needs of poor households and other policy beneficiaries in Lam Dong. It has significantly supported the implementation of national target programs on sustainable poverty reduction, new rural development, and socio-economic advancement in ethnic minority and mountainous regions. Furthermore, this credit has helped develop the local economy, ensure social security, and stabilize political and social conditions. It has also mitigated the negative impact of black credit on poor, near-poor, newly non-poor households, and other policy groups, especially in rural, remote, and ethnic minority areas.

Le Hoa – Anh Nguyet – Van Bau