The loan program to support job creation, maintenance and expansion of the provincial branch of the Vietnam Bank for Social Policies (VBSP) has been effective for many years, providing loans to workers. Thereby, creating a "leverage" for workers to expand production and business, contributing to economic development, reducing unemployment rate, and ensuring social security in the locality.

Ms. Bui Thi Hong (right) discusses with the Head of the Savings and Loan Group of Quarter 5, Cua Viet Town, Gio Linh District about the effectiveness of using loan capital - Photo: TU LINH

Previously, Mr. Vo Hong Thanh in Quarter 5, Cua Viet Town, Gio Linh District, the owner of a fishing boat with a capacity of over 400CV, received a loan from the Social Policy Bank to buy fishing gear for mackerel fishing. Thanks to that, his boat has helped his family earn more income and create jobs for many workers. Before the Lunar New Year 2024, his boat caught a catch of mackerel worth more than 200 million VND, and his family was very excited. Recently, through research, he learned that the Social Policy Bank is implementing a loan program to support job creation, job maintenance and expansion with preferential interest rates.

Because Mr. Thanh was fishing at sea, his wife, Ms. Hong, at home, was advised by the head of the savings and loan group of the neighborhood and introduced to access loans from the Vietnam Bank for Social Policies. “With the enthusiastic guidance of the savings and loan group, this time my family requested to borrow 100 million VND from the loan program to support job creation, job maintenance and expansion to buy more fishing gear for tuna fishing. On each sea trip, my family's boat creates jobs for 10 workers. With these new investments, the fishing boat will operate more effectively,” Ms. Hong shared.

In the coastal communes of Gio Linh district, many families have been and are borrowing capital from the program of lending to support job creation, maintaining and expanding employment of the Vietnam Bank for Social Policies and using it effectively. Mrs. Tran Thi De in Xuan Tien village, Gio Viet commune buys seafood to supply to hotels and restaurants in the province.

Three years ago, Ms. De borrowed 50 million VND from the loan fund to support job creation, maintenance and expansion of the Social Policy Bank to expand her business. Ms. De had a good business plan and calculation, so she used the loan very effectively, the business developed, thanks to which her family's life became better and better. In addition to paying the loan interest regularly every month, she also saved money to pay off the principal.

Deputy Director in charge of the Transaction Office of the Social Policy Bank of Gio Linh District, Truong Thi Thoa, said that the loan capital to support job creation, maintain and expand employment, implemented in the district over the past years, has been effective, helping to improve the lives of thousands of workers. The policy credit capital has improved the appearance of the district's rural areas, thereby limiting the activities of black credit, contributing to maintaining security, order and social safety in the area. As of March 31, 2024, the total outstanding debt of this loan program was 129.9 billion VND; supporting job creation, maintaining and expanding employment for 2,224 local workers.

According to Director of the Provincial Branch of the Vietnam Bank for Social Policies, Tran Duc Xuan Huong, the loan program to support job creation, job maintenance and expansion is implemented in accordance with Decree No. 74/2019/ND-CP dated September 23, 2019 of the Government on amending and supplementing a number of articles of Decree No. 61/2015/ND-CP dated July 9, 2015 of the Government regulating policies to support job creation and the National Employment Fund. This Decree has many favorable incentives for workers, in line with reality.

The loan objects are production and business establishments and workers with clear production and business purposes, development potential, high economic efficiency and the ability to create jobs for many rural workers, thereby contributing to promoting socio-economic development and sustainable poverty reduction.

The maximum loan amount for production and business establishments is 2 billion VND/project and not more than 100 million VND for 1 employee to create, maintain and expand employment. For employees, the maximum loan amount is 100 million VND/employee; both subjects enjoy an interest rate of 7.92%/year and a maximum loan term of 120 months.

It can be said that the loan program to support job creation, maintenance and expansion is increasingly effective. Many localities such as Vinh Linh, Gio Linh, Trieu Phong, Hai Lang districts... have effectively implemented this meaningful program.

The cumulative lending turnover of the provincial branch of the Social Policy Bank up to the end of the first quarter of 2024 of this program is more than 1,428 billion VND, with 41 thousand customers receiving loans. The outstanding loan balance to date has reached more than 907 billion VND, with 16.7 thousand customers still having outstanding loans. The demand for loans to create jobs is currently very large, but the capital source cannot meet the needs of workers.

In order for capital to effectively solve employment problems and lend to the right subjects, the Vietnam Bank for Social Policies will continue to coordinate well with local authorities, associations, unions at all levels and relevant departments and branches to maintain and improve credit quality.

Strengthening information and propaganda work on the results of the activities of the Social Policy Bank, popularizing the credit policy programs being implemented. Increasing capital sources to support people in need of loans by promoting the mobilization of deposits from organizations and individuals through the Social Policy Bank.

Along with that, do a good job of checking and supervising loans, ensuring the use of capital for the right purpose, collecting loans and interest on time as prescribed, and not allowing overdue debts to arise.

Promote the role of supervision and social criticism of the Fatherland Front and socio-political organizations at all levels in implementing policy credit programs, ensuring that capital is disbursed promptly to the right beneficiaries, safely, contributing to the socio-economic development of the province.

Tu Linh