Effectiveness of implementing Directive No. 40-CT/TW

In 2023, through the Youth Union's trust, Mr. Le Thanh Dong's family in Thuan Bac village, Thuan An commune, Dak Mil district, borrowed 100 million VND from the VBSP from the Employment Loan Program. With the capital, he invested in coffee. The process of growing, caring for, and investing in buying fertilizers, thanks to which the productivity is high, providing a stable income. Currently, each year he harvests 3.8 tons/ha, after deducting expenses, he earns about 150 million VND/ha. Thanks to that, his family has a stable income, creating jobs for family workers.

According to the Party Secretary of Thuan An Commune, Le Xuan Dong, the commune has over 1,120 households receiving preferential loans from the Vietnam Bank for Social Policies, with outstanding loans of over VND41 billion. Of which, over 30% of ethnic minority households received preferential loans to develop production. To achieve this result, the Party Committee and the commune government directed Party cells and village and hamlet self-management boards to strengthen leadership and supervision. From the stages of evaluation, lending, and use of loans, all ensure the right subjects.

Chairman of Dak Mil District People's Committee Le Van Hoang affirmed that preferential credit is a very important resource, supporting the locality in the process of poverty reduction and economic development. Thanks to preferential capital, the poverty rate in the area has decreased year by year.

Implementing Directive No. 40-CT/TW, Dak Nong province has synchronously deployed solutions to help expand credit growth, contributing to effectively implementing the goals of poverty reduction, job creation and ensuring social security. Since implementing Directive No. 40-CT/TW and Conclusion No. 06-KL/TW, the good implementation of propaganda and dissemination of policies and laws on social credit has profoundly changed the awareness and actions of Party committees at all levels, authorities, the Vietnam Fatherland Front and socio-political organizations of the province in promoting the implementation of social credit.

People's Committees at all levels have issued many policy mechanisms, supporting the VBSP with facilities and balancing the transfer of entrusted capital to the VBSP, to supplement capital for lending to poor households and other policy beneficiaries to achieve the goals of poverty reduction, job creation, new rural construction, ensuring social security in localities, and narrowing the gap between rich and poor regions.

The provincial Party Committee and government have focused on reviewing, amending, supplementing and perfecting legal documents, promptly promulgating mechanisms and policies related to social policy credit to mobilize, manage and effectively use social policy credit resources; creating conditions for the Vietnam Bank for Social Policies to expand the mobilization of resources from individuals and organizations; gradually expanding the social policy beneficiaries eligible for loans, increasing the loan amount and loan term in accordance with the objectives of the National Target Programs (NTPs) and the socio-economic development goals of the locality.

Local Party committees and authorities at all levels identify the mobilization of resources to implement social policy credit as a key task, and the arrangement of financial resources to implement social policy credit in the direction of integrating policy credit programs in investment decisions, National Target Programs and other programs and projects in the socio-economic development plan.

The local budget capital entrusted to the VBSP for lending to poor households and other policy beneficiaries in 2014 (before Directive 40-CT/TW) was more than 50 billion VND. By November 30, 2024, the total entrusted capital reached 365 billion VND, implementing programs such as: Loans to support job creation; maintaining and expanding employment; loans for poor households; loans for workers going to work abroad, etc.

"Support" for people to reduce poverty

Deputy Director of the Dak Nong Provincial Branch of the Vietnam Bank for Social Policies, Vu Anh Duc, said: Since the issuance of Directive No. 40-CT/TW and Conclusion No. 06-KL/TW, social policy credit has helped 444,749 poor households and other policy beneficiaries to borrow capital to invest in production and business development; helped 51,816 households overcome the poverty line; helped 28,019 students in difficult circumstances to have conditions to go to school; created conditions for 37,847 workers to borrow capital to create jobs, maintain and expand jobs, increase income; helped 259 workers to work abroad for a limited period; built 189,533 clean water and rural environmental sanitation works that meet national standards; supported the construction of 3,719 houses for poor households and policy beneficiaries.

Social policy credit capital has continuously promoted its effectiveness, contributing to the successful implementation of the National Target Programs and promoting socio-economic development in the locality. Policy credit programs at the Vietnam Bank for Social Policies have been implemented promptly, to the right beneficiaries, effectively, joining hands with the local government to successfully implement the Resolution of the Provincial Party Congress on the Sustainable Poverty Reduction and New Rural Development Program in the locality. Specifically, in 2014, the poverty rate of the province was 15.64%, by 2023 it had decreased to 5.18%; the average annual decrease is over 1%; contributing to the positive completion of a number of targets and criteria for new rural development in the locality, preventing the situation of black credit.

In recent years, Dak Nong province has identified the policy of integrating policy capital to consolidate, promote and expand cooperatives and cooperative groups, assigning socio-political organizations to develop start-up projects to support business households and enterprises to produce OCOP-standard products to orient economic development for households.

To continue to strengthen the Party's leadership over social policy credit in the coming time, the branch hopes that the Dak Nong Provincial Party Committee will continue to effectively implement Directive No. 40-CT/TW, Conclusion No. 06-KL/TW and Directive No. 39-CT/TW dated October 30, 2024 of the Central Party Secretariat on improving the effectiveness of social policy credit in the new period. In particular, pay special attention to social policy credit, considering it an important solution for poverty reduction and job creation, building new rural areas in the locality; determine the content, tasks, and timely and sufficient allocation of entrusted capital to the provincial branch of the Vietnam Bank for Social Policies to lend to poor households and other policy beneficiaries; effectively implement the organizational model and entrusted management method through socio-political organizations; develop and deploy a plan for agricultural economic development to adapt to climate change.