Effectiveness of policy credit in Ninh Binh

Friday, 31/05/2024 17:10
(CPV) - From 2022, because there are no longer poor districts or particularly difficult communes, the northern province of Ninh Binh is no longer on the list of localities that benefit from the central budget in the national target program on sustainable poverty reduction.

Therefore, in recent times, party committees, authorities, units, departments and branches in Ninh Binh have researched and advised the province to promulgate specific policies and proactively allocate funds for implementation of programs and projects to promote internal resources for sustainable poverty reduction in the new period.

A transaction point in Cuc Phuong commune, Nho Quan district.

One of the key projects expected to create livelihoods to help the poor develop production and business and improve their lives, is to focus on mobilizing and promoting investment in policy credit capital to promptly meet the needs of the right beneficiaries and addresses.

Director of the Vietnam Bank for Social Policies’ (VBSP) branch in Ninh Binh, Mr. Pham Duc Cuong said that in the journey of more than two decades, especially since the beginning of 2023, when the northern province implemented the national target program on sustainable poverty reduction in the 2021-2025 period, the bank always unanimously agrees to participate in the local rapid and sustainable poverty reduction project, through specific actions such as focusing on mobilizing all resources finance and quickly and safely transferring the State’s preferential capital to villages, communes and wards in the mountainous areas of Nho Quan, Gia Vien and outside the coastal areas of Kim Son and Yen Khanh.

Policy credit capital for households in Nho Quan

By the end of March 2024, the total capital of the VBSP’s branch in Ninh Binh reached approximately 4 trillion VND, an increase of more than 466 billion VND compared to the same period last year. After nearly 10 years of applying Directive 40 of the Secretariat on social policy credit, financial resources in Ninh Binh originating from the State budget are transferred to one focal point and handed over to the VBSP in the area to manage and use.

The provincial People’s Committee and affiliated districts, towns and cities have balanced budget revenues and expenditures, transferring 210 billion VND to the VBSP to support thousands of poor households, vulnerable people and disabled people with capital for production and business.

All mobilized and created policy capital sources, along with additional and entrusted local budget capital flows, have been promptly transferred to the entire region by policy credit officers in Ninh Binh.

The household borrows capital to grow pineapple

Thanks to a large capital source, a system of 2,218 Savings and Loan Groups in villages, and a network of transaction points of the VBSP covering the whole area from the province to communes, wards and towns has facilitated local people with easy access to preferential capital from the State.

In 2023 alone, the bank’s loan revenue will reach 1,181 billion VND, with 24,523 customers, contributing to reducing the poverty rate in the entire province to 1.86%, down 1.19% compared to the end of 2022.

The household borrows money to grow clean vegetables

In addition, policy credit capital has also supported production and business and created jobs for nearly 10,000 workers, and helped nearly 1,500 students in difficult circumstances get loans to study; build and renovate 22,000 clean water and rural environmental sanitation projects, and build 200 new solid houses for poor households and policy beneficiaries.

Ms. Dinh Thi Ly's family, in Nga 1 village, Cuc Phuong commune started a business with 50 million VND in policy loans, and today she operates an ideal garden and pond business model, earning hundreds of millions of VND a year in profit, escaping the list of poor households.

Fish farming from policy credit capital 

Mr. Tran Van Ty’s family, in hamlet 3, Gia Thang commune, borrowed money from VBSP Gia Vien district in 2016 to raise cows for reproduction, combined with growing passion fruit and sweet pineapple, rising out of poverty. After paying off the first loan to the bank, his family applied for another loan to expand their integrated livestock farm.

“Currently, my family owns six cows and 1,000m² of freshwater fish area, bringing the income of VND 200 - 250 million each year,” Mr. Ty shared.

Policy credit source has actually played an important role in sustainable poverty reduction in many consecutive years, especially in the period 2021 - 2025. The VBSP’s branch in Ninh Binh will continue to effectively implement Directive 40-CT/TW and Conclusion 06-KL/TW of the Secretariat, contributing to the sustainable poverty reduction and new rural areas construction in the province./.