VBSP is one of the main "pillars" of the policies system of poverty reduction

(VBSP News) On March 31, VBSP cooperated with Banking Academy to organize the scientific workshop with the topic: “VBSP's development strategy in the period of 2021-2030”. 

Co-chairs includes Mr. Dao Minh Tu - Deputy Secretary of the Party Personnel Committee, First Deputy Governor of the SBV, member of the Board of VBSP; Mr. Thao Xuan Sung - Chairman of Vietnam Famer's Union, member of the Board of VBSP; Mr. Bui Sy Loi - vice-chairman of National Assembly Social Affairs Committee; Mr. Y Thong - vice-chairman of Committee for Ethnic Affairs; Mr. Le Van Thanh - Deputy Minister of  Labour - Invalids and Social Affairs; Mr. Duong Quyet Thang - a member of the Board of Director, General Director of VBSP and Mr. Dao Minh Phuc - President of the Council of the Banking Academy. 

First Deputy Governor Dao Minh Tu of SBV gives an opening speech at the Workshop

Speaking at the opening, First Deputy Governor Dao Minh Tu of the State Bank of Vietnam (SBV) said that after 10 years of implementing the Development strategy of the 2011-2020 period, activities of VBSP always ensure its stability, sustainability, and sufficient capacity to implement the policy credit according to the objectives and orientations. Policy credit programs have covered almost all the disadvantaged. VBSP played as economic leverage of the particular policy credit channels, the state of Vietnam. VBSP supported the poor and other policy beneficiaries to approach the policy credit to escape from poverty, improve their living conditions, ensure social security. 

The growth rate of total capital from policy credit activities reached 10%/year in the period of 2011- 2020. The scale of this capital increased 2.6 times, from VND 90,400 billion in 2010 to VND 233,426 billion in 2020. The growth rate of outstanding loans from policy credit programs reached about 10% per year. The scale of this loan also surged 2.5 times, from VND 89,462 billion in 2010 to VND 226,197 billion in 2020 with more than 6.4 million poor-household, near-poor households, and other policy beneficiaries. The capital of policy credit has contributed to reducing the rate of poor-household from 14.2% to 4.25% from 2011 to 2015, the percentage of poor-household according to the multidimensional poverty from 9.88% (2016) to below 3% (2020). 

General Director of VBSP Duong Quyet Thang having a speech at the Workshop

The Communist Party of Vietnam, the State, and Vietnamese citizens highly appreciate VBSP's policy credit activities during this period. Hence, VBSP was honored as the “Hero of Labor" in the renovation period.

However, it is predicted that the Covid-19 pandemic, climate change still have negative impacts on people, especially the poor. Therefore, VBSP's development strategy in the period of 2021-2030 should deliver clear purposes, orientations, as well as solutions to match the Socio-economic development strategy (2021-2030 period); Development Strategy of Vietnam Banking Sector to 2025, with Orientations to 2030; the multidimensional poverty line for 2022-2025 period. Besides, the strategy should be in line with the VBSP activities to contribute to the implementation of the national target programs for sustainable poverty reductions, new rural construction, and socio-economic development in Ethnic minorities and rural areas - stated by the First Deputy Governor of the SBV.

The Workshop has received a wide range of analytical, evaluating, and sharing opinions from different departments, ministries, and other organizations. In general, the delegates agreed that the policy credit plays an important solution to implement the national target programs, as well as develop socio-economic. Hence, it is necessary to actively and effectively implement this policy. 

The strategy aims to unify the policy credit function from commercial banks to VBSP, besides developing VBSP to an autonomous and stable organization in the long run. In addition, VBSP still maintains as a public financial institution of the government, focus on sectors that market-driven organizations can’t meet. 

The landscape of the Workshop

Suggestions and recommendations related to VBSP were given, including ensuring the finance for VBSP's operation, promptly meet the capital need of the poor and the disadvantaged. The scale of policy credit programs should cover the disadvantaged groups, poor people in rural areas, ethnic groups, etc.

The First Deputy Governor of the SBV appreciated the opinions of members. She shared that these opinions would be a concrete base for VBSP to complete the development strategy in the period of 2021-2030. The strategy will contribute to the implementation of the national target programs, social and national security in the future.