VBSP needs to focus on formulating and implementing development strategy for period of 2011-2020

Deputy Prime Minister (PM) Vu Van Ninh had a working session with the Vietnam Bank for Social Policies (VBSP) at its headquarter in Hanoi on March 23. Attending the working session were Governor Nguyen Van Binh of the State Bank of Vietnam -cum- VBSP Acting Chairman, and members of the Board of VBSP directors including Mr. Pham Van Phuong, Vice chairman of the Office of Government, Mr.Tran Xuan Ha, Deputy Minister of Finance, Nguyen The Phuong, Deputy Minister of Planning and Investment.

PM Vu Van Ninh requires VBSP to better social walfare policies

Reporting the VBSP performance over the past 9 years from its establishment, Mr. Duong Quyet Thang, member of the Board of VBSP Directors-cum-CEO, stated that VBSP was established under Decision No.131/2002/QD-TTg of the PM dated October 4, 2002. In 2003, VBSP implemented only 3 policy credit programs, but up to now it has reached 18 programs and projects (of which 14 programs were funded by domestic resources and others by foreign trust funds). During the 9-year operation, policy credit was implemented promptly in line with regulations; capital resources were disbursed directly to the beneficiaries in various communes in the presence of the local authorities and socio-political organizations. Savings and loan groups are operating under an open and democratic environment.

By end 2011, the VBSP total capital resources reached VND 105,490 billion, 13-fold higher than early 2003, an average increase of 34% p.a. The total loans were VND178, 000 billion, significantly contributing to creating capital resources for credit programs. Loan outstanding focused on programs given to poor households (accounting for 37% of the total loan outstanding), students (32.2%); households for business and production in disadvantaged areas (8.2%); creating jobs (5%), and housing construction for poor households (3.2%).

In general, after 9 years’ operation, VBSP met the set objectives including bringing back the State’s social policy credit sources into unity, creating a breakthrough in the  poverty reduction, improving human resources and securing social protection; Increasing the investment efficiency of the State  credit  policy by improving the credit quality, training saving awareness, organizing production and business to pay debts on schedule; Separating policy credit from commercial credit, facilitating credit institutions to operate in line with the market-oriented mechanism; Mobilizing the whole society to participate in  poverty reduction; and Contributing to limiting  usury in rural areas.

To conclude the meeting, Deputy PM Vu Van Ninh highly appreciated the achievements gained by VBSP after 9 years’ operation. Through its operations, VBSP proved to be an effective tool to pursue social protection policies of the Government, he said.

Agreeing with the need to implement specific policies and mechanisms, Deputy PM Vu Van Ninh stated that first of all it is necessary to identify the VBSP’s role and position so that in the future, VBSP would continue to intensively and extensively implement the preeminent guidelines and policies of the Party and the State on social protection. Therefore, he added, VBSP has to continue to improve its working model and enhancing the quality of operations, formulating the management method in line with the needs of each period, and encouraging socio-political organizations to take part in the operations of VBSP.

He continued to note that the formulation of VBSP’s development strategy must be based on the orientation of the socio-economic development of the country, especially the goals of the social protection program, and VBSP needs to focus on the formulation and implementation of its development strategy in combination with the implementation of national targeted programs to build new rural areas, expand the coverage of beneficiaries in line with the capacity and actual development of the country...

The Deputy Prime Minister required VBSP to concentrate on training and improving skills for its staffs; and applying information technology and science in its operations and management to meet the increasing requirements and tasks in the future.

Source: sbv.gov.vn