Directive 40-CT/TW: Creating a turning point for preferential credit in Co To.

Recalling the situation 10 years ago, Mr. Nguyen Duc Chien, Director of the Social Policy Bank (NHCSXH) branch in Co To district, shared that due to the district's island location and difficult transportation, trade and exchange of goods were limited, and the economy and people's lives faced difficulties. The economy mainly relied on traditional aquaculture and fishing, but lacked capital for production and business investment.

Therefore, when Directive No. 40-CT/TW was issued and implemented by the Central Party Secretariat, it helped Party committees, government agencies, and socio- political organizations in Co To island district to strongly engage, especially with clear positive changes in increasing capital and improving the effectiveness of social policy credit.

Ms. Vu Thu Hoa, Chairwoman of the Quang Ninh Provincial Women's Union, spoke at the inspection of the Board of Directors' Representative Committee of the Vietnam Bank for Social Policies in Co To District.

According to the Co To District Branch of the Vietnam Bank for Social Policies, as of June 30, 2024, the total capital amounted to VND 139,507 million, an increase of VND 92,068 million compared to 2014 (of which entrusted investment capital in the locality was VND 34,645 million, an increase of VND 35,859 million compared to 2014); the total outstanding loans of policy credit programs in the area reached VND 139,320 million, an increase of VND 91,881 million compared to the period before the issuance of Directive 40-CT/TW. The overdue loan rate was only 0.08%, a decrease of 1.78% compared to December 31, 2014.

With increased capital, the social policy credit activities of the Vietnam Bank for Social Policies (VBSP) have positively impacted the economic restructuring of the locality, transforming the production methods of poor households and other policy beneficiaries. Social policy credit capital has made a significant contribution to effectively implementing the policies, goals, and tasks set by the Party Committee and the government of Co To district.

Policy credit funds have proven effective, contributing to providing loans for investment in production and business development to 1,748 poor households and other policy beneficiaries in the district. This includes: 12 poor households, 2 near-poor households, and 1 newly-escaped-poverty household receiving loans for economic development. Simultaneously, it has facilitated a shift in business practices, helping to stabilize and improve living standards and significantly change material living conditions, encouraging borrowers to stabilize their lives and achieve sustainable poverty alleviation; creating jobs for 1,373 workers through the national employment fund program; supporting 2 disadvantaged students with loans for their studies; 5 students purchasing computers and online learning equipment; and investing in and renovating 423 rural water supply and sanitation projects. Three households engaged in production and business in disadvantaged areas received loans for family economic development; 40 low-income working households received loans for social housing to repair and build new houses; and one household received a loan for production and business from the program for loans to individuals who have completed their prison sentences...

Officials from the Vietnam Bank for Social Policies in Co To district conduct transactions in Thanh Lan commune.

Ms. Nguyen Thi Ganh, one of the disadvantaged households in Co To district, has had a profound impact on the changes following the issuance of Directive 40-CT/TW. Ms. Ganh shared: "Previously, my family relied solely on fishing and farming for our livelihood, with unstable income. Thanks to Directive 40-CT/TW, we have been able to access preferential loans from the Social Policy Bank to invest in breeding cattle. Now, our family's income is stable and our living standards have improved significantly. I hope that policy credit programs will continue to support other households like ours.”

Mr. Nguyen Duc Chien emphasized that, as the focal point for providing preferential loans in the area, the Branch Office has strictly adhered to the targets and guidelines from the superior bank and the Board of Directors of the Vietnam Bank for Social Policies. At the same time, it has effectively cooperated with entrusted socio-political organizations to implement policy credit programs in the best possible way. This effort has made a significant contribution to the implementation of the national target program on poverty reduction, ensuring social security and building new rural areas in the locality.

In particular, the coordination between the Vietnam Bank for Social Policies (VBSP) and Party committees, government agencies, and socio-political organizations in implementing policy credit programs plays a very important role. "This coordination not only helps us allocate capital effectively but also facilitates inspection and supervision to ensure that loans are used for their intended purpose and bring practical benefits to the people," Mr. Chien added.

It can be affirmed that the implementation of Directive No. 40-CT/TW is a correct policy of the Party and the State, meeting the aspirations of the people and increasingly becoming a part of daily life, strengthening the people's trust in the Party and the State, contributing to achieving the goals of rapid and sustainable poverty reduction; building new rural areas; ensuring social security; and maintaining political stability, security, and national defense in Co To island district.