In the journey of sustainable poverty reduction of Thanh Hoa province in recent years, it is impossible not to emphasize the important role of policy credit. In particular, the credit capital source deployed by the Social Policy Bank - Thanh Hoa Branch (Thanh Hoa Social Policy Bank) has become "the swallow weaving spring", bringing prosperity to many poor families, policy families...

Staff of the Transaction Office of the Social Policy Bank of Trieu Son coordinated with socio-political organizations to promote propaganda, popularize and implement policy credit programs in Van Son commune. Photo: Luong Khanh

Affirming humanity

Nghi Son town is a vivid example of the transformation of a difficult locality into a dynamic new urban area. In that change and development, in addition to promoting the locality's unique advantages, it is impossible not to mention the "support" from social policy credit capital. Because, from the 10-year practice of implementing Directive No. 40-CT/TW dated November 22, 2014 of the Central Party Secretariat on strengthening the Party's leadership over social policy credit work (Directive No. 40-CT/TW), it shows that: Policy credit has become an important pillar, contributing to improving people's lives, reducing the local poverty rate to 2.06%. This will be the basis for the Party Committee, government and people of Nghi Son town to be determined to successfully complete the socio-economic goals for the entire term 2020-2025.

The economic model of Ms. Hoang Thi Doanh's family (Xuan Lam ward, Nghi Son town) has developed as it is today thanks to the attention and support of the Party Committee, the government, mass organizations and the People's Credit Fund. Ms. Doanh shared: "Previously, due to not having a stable job, my family's life faced many difficulties. After being evaluated and approved by the savings and loan group and secured by the Nghi Son People's Credit Fund, I was able to borrow 100 million VND to invest in extensive shrimp farming. Up to now, my family has 3 ponds, generating an income of hundreds of millions of VND each year."

Not only Ms. Doanh's family but also many poor households and policy families in Nghi Son town, thanks to loans from the VBSP and the attention and encouragement of the Party Committee, the government, and mass organizations, have risen out of poverty, enriching their families and localities. It is known that in order to concretize the policy of mobilizing resources for policy credit, the Party Committee and the government of the town have arranged for 100% of the chairmen of the People's Committees at the ward and commune levels in the area to participate as members of the Board of Directors of the VBSP; at the same time, arranging locations and ensuring security and safety for transactions... By the end of June 2024, the total outstanding policy credit balance in the town reached more than 820 billion VND, with more than 14,000 loan customers.

Like Nghi Son town, Nga Son district has flexibly utilized capital sources and reviewed and identified subjects, creating favorable conditions for people to access capital. Director of Nga Son Social Policy Bank Cu Ngoc Thanh affirmed: The participation of Party committees, authorities, and mass organizations is important for the stable and sustainable development of policy credit activities. Thanks to that, the bank has successfully built and organized a method of managing specific, effective policy credit capital, suitable for practical conditions. The family of Mr. Nghiem Van Truong, Hung Dao village, Nga Thuy commune is one of the households that effectively used policy credit capital from the Social Policy Bank. Initially, he borrowed 30 million VND, and invested in developing the sedge mat production profession. Through years of experience accumulation, his family's production facility has become economically efficient and has been given the opportunity to increase the loan limit to 50 million VND to expand the facility and buy more mat weaving machines. Thanks to preferential loans, Mr. Truong's family has escaped poverty, bringing a stable income of more than 200 million VND per year.

"Understanding the people - serving wholeheartedly"

After a decade of implementing Directive No. 40-CT/TW in the province, with the high determination in leadership and direction of Party committees and authorities at all levels, the participation of the entire political system, the organizational model and operation method of the VBSP system are increasingly improved and effective. For each VBSP officer, the motto of "understanding the people's hearts - serving wholeheartedly" is always imbued, close to the people, promptly reviewing the subjects, grasping the needs of poor households and policy subjects to lend correctly and sufficiently so that "no one is left behind" in the journey of economic development.

Thanks to that, 100% of districts, towns and cities have used capital from local budgets transferred to the VBSP at the same level to lend to the poor and other policy beneficiaries. In the period 2014-2024, the whole province had 847,900 poor households and other policy beneficiaries borrowing capital from the VBSP, with a total loan turnover of VND 32,588 billion. From the policy credit capital, it has supported job creation for more than 63,000 workers; helped 13,900 students in difficult circumstances borrow capital for their studies; built 520,000 clean water and sanitation works in rural areas; built 12,536 houses for poor households to stabilize their lives and social housing for low-income people. At the same time, support 14 businesses and employers affected by the COVID-19 pandemic to borrow capital to restore production and business and pay severance pay for more than 2,000 workers. The credit capital has helped over 194,500 households escape poverty and contributed to reducing the poverty rate of the whole province to 3.52% by the end of 2023...

The effectiveness of investment in policy credit capital is not only measured by economic efficiency; but also contributes to achieving the larger goal of improving the quality of life for the people. On that journey, Thanh Hoa Social Policy Bank is a "bridge" that quickly brings policy credit capital into life and brings practical results, helping the poor and vulnerable "not to be left behind".

Luong Khanh

Final article: For sustainable development of social policy credit.