VBSP’s great contribution in implementing the goal of sustainable poverty reduction

(VBSP News) “With over VND 4,000 billion, VBSP's financial inclusion service is supporting nearly one-third of the households in Phu Tho province, which means that the socio-economic development of the province has a great contribution of VBSP. This is the most important channel to help the province implement the goal of sustainable poverty reduction”, Mr. Bui Minh Chau - Member of the Party Central Committee, Secretary of the Provincial Party Committee, Chairman of the Provincial People's Council, Head of the National Assembly delegation of Phu Tho province said at a meeting with VBSP’s high-ranking delegation on the implementation of social policy credit in Phu Tho province over the past time on December 16, 2019.

VBSP General Director – Mr. Duong Quyet Thang said that VBSP will continue to support Phu Tho province in implementing the goal of sustainable poverty reduction

The report of Mr. Truong Viet Phuong – Director of VBSP in Phu Tho province further clarified the effectiveness of social policy credit over more than 17 years. Especially after 5 years of the Directive No. 40-CT/TW, there are many documents issued to put the directive into life, in which the People's Committee has its own document on transferring a part of the local budget to VBSP in Phu Tho province to give loans to the poor and other policy beneficiaries. Recently, the document on strengthening capital mobilization for social policy credit programs is also issued.

Besides, local authorities and mass organizations have worked with VBSP to build a wide organizational model and network with 277 transaction points in communes, wards, towns and 4,038 savings and credit groups.

Secretary of Phu Tho Provincial Party Committee – Mr. Bui Minh Chau made a speech at the meeting

Since VBSP in Phu Tho province’s establishment, it has given loans to 697,297 poor households and other policy beneficiaries with the lending turnover of more than VND 11,326 billion; the debt collection revenue is over VND 7,403 billion. As of November 30, 2019, the total outstanding loans of credit programs in the province reached over VND 4,108 billion, an increase of 22 times higher than 2002 serving 121,040 active borrowers, the average outstanding loans reached VND 33.94 million/household compared to VND 31.2 million/household in 2002.

The credit programs and inclusive finance have created conditions for nearly 700 thousand poor households and other policy beneficiaries to have investment capital in production and business, have jobs and escape from poverty. Specifically, 33,261 workers are created jobs; 15,076 houses are built; 96,733 students are covered their study costs; 7,719 laborers are worked abroad for limited terms; 134,867 clean water works and 134,148 sanitary works are repaired and newly built; etc. Since then, VBSP has contributed to reducing the number of poor households in the province from 67,954 households in 2003 to 28,667 households by the end of 2018.

VBSP has helped poor, near-poor and ethnic minority households have capital to buy equipment, machines, fertilizers, plants, domestic animals and pay for tuition fees and daily life, etc. Since then, it has prevented “black credit”, contributing to changing the face of the countryside, promoting agricultural and rural economy. On the other hand, it has solved pressing issues in society such as housing, employment, environment, clean water and tuition fees, etc.

The landscape of the meeting

"Through the activities of the government credit institutions, lending to poor households and other social policy beneficiaries of VBSP is the most appropriate, effective and sustainable channel" Mr. Bui Minh Chau - Provincial Committee Secretary said. As of November 30, 2019, overdue debt ratio only accounts for 0.15% of the total outstanding loans. Frozen debt accounts for only 0.003% of total outstanding loans, showing a high awareness of the people in the use of the capital. Thanks to the effective policy credit, it has narrowed the gap in living standards among people; consolidating and raising the trust of the people, especially poor households and other policy beneficiaries.

The effectiveness of social policy capital contributed to the economic growth of Phu Tho province by 7.83% compared to the plan. The poverty rate reduces from 12.4% in 2016 to 5.27% by the end of 2019, contributing to helping 102 communes of the province meet new rural standards, accounting for 42% of the total number of communes in the province. The average of new rural criteria of the whole province is 15.2%, higher than the national average of more than 12.3%.

By November 30, 2019, the total capital of VBSP in Phu Tho province reached over VND 4,117 billion, of which capital from the central accounted for 85.39%. Total local capital transferred to VBSP reached nearly VND 49.7 billion, accounting for 1.21%.

However, the transferring of funds from the local budget to VBSP at all levels in Phu Tho province is still low while the rate of poor households is still high (the whole province has over 20,000 ethnic minorities, accounting for over 14% of the total provincial population). Therefore, the current capital source does not meet the needs of the people.

At the meeting, VBSP General Director – Mr. Duong Quyet Thang suggested the Provincial Party Committee, People's Council and People's Committee continue to company with VBSP to allocate resources to support policy beneficiaries in the province.

On VBSP’s side, VBSP General Director – Mr. Duong Quyet Thang pledged to continue to support the province in achieving the goal of sustainable poverty reduction. In addition, VBSP will allocate VND 20 billion for VBSP in Phu Tho province for job creation program. However, the General Director asked the VBSP Phu Tho’s Director to coordinate closely with local authorities to develop specific plans and schemes so that the capital can be used effectively.

vbsp.org.vn