Directive creates breakthroughs for social policy credit

Hanoi (VNA) – Directive No. 40-CT/TW of the Party Central Committee's Secretariat on strengthening the Party's leadership towards social policy credit has served as a new wind that creates breakthroughs for social policy credit.

Transactions are made at the Vietnam Bank for Social Policies. (Photo: VietnamPlus)

If in the 2011-2015 period, the rate of poor households decreased from 14.2 percent to 4.25 percent, the multidimensional poverty rate fell from 9.88 percent in 2016 to 3.75 percent in 2019.

The social policy credit in the past five years (2015-2020) grew 10.1 percent per year on average. Moreover, new breakthroughs in credit supply for all policy beneficiaries have made social policy credit a major channel that contributes to sustainable poverty reduction and new-style rural area building, helping localities build an economic foundation for sustainable development.

These achievements were obtained thanks to the leadership and direction of the Party Organisation of the Vietnam Bank for Social Policies as well as the pioneering role of Party members, key officials, and mass organisations such as the youth union and the women’s union.

From innovation in leadership

The results of social policy credit provision in Hanoi for the 2015-2020 term are a vivid demonstration of the activities of the Party Organisation of the Vietnam Bank for Social Policies (VBSP) in general and the Party Organisation of its Hanoi branch (VBSP Hanoi) in particular. As the poverty standards set for the city are higher than the national average and the policy credit from the central budget cannot cover all, the Party Organisation of the VBSP Hanoi has directed the effective implementation of Directive No. 40-CT/TW of the Party Central Committee's Secretariat on strengthening the Party's leadership towards social policy credit.

Local budget capital transferred to the bank’s Hanoi branch in five years of implementing Directive No. 40-CT/TW was over 2.9 trillion VND.

The VBSP Hanoi always saw a high credit growth. As of July 31, the total mobilised and managed capital at the branch was nearly 9.3 trillion VND, up 4.56 trillion VND from 2015. Total outstanding loans of 16 credit programmes reached 9.21 trillion VND, an increase of 4.49 trillion VND from the beginning of the term.

At the central level, the VBSP Party Organisation has led not only its subordinate Party organisations but also the whole system of the bank to well implement the instructions of the Party, State, Government, and banking sector.  Especially, it has really served as an arm of the Government in supporting disadvantaged people to escape poverty sustainably through social policy credit.

As many as 10 resolutions, five rules, 10 regulations, 33 programmes, eight guidelines, two projects, 43 plans and nearly 1,400 documents and reports have been carried out in the past term from 2015 to 2020. The above figures proved the VBSP Party Organisation’s drastic leadership and direction of the implementation of the resolutions, directives, and conclusions of the Central Party Committee, the Party Committee of the Central Business Bloc, and the Board of Directors of the bank.

The Party leadership mode has been renovated in the principle of collective leadership and individual responsibility, raising the responsibility of the head, focusing on important areas, and promptly and completely solve difficulties and problems facing agencies at grassroots level.

VBSP Party Secretary and General Director Duong Quyet Thang has regularly directed Party committees and local authorities at all levels to coordinate in the effective implementation of Directive No. 40-CT/TW and credit programmes for social policy beneficiaries, especially in Northwest, Central Highlands, and Southwest provinces as well as ethnic minority and mountainous areas.

Policy credit has helped many families escape poverty. (Photo: VietnamPlus)

To breakthroughs in implementation

The innovation in the leadership of the Party as well as officials and Party members has been expanded in both size and quality, laying a premise for the VBSP to successfully perform its major political tasks.

In particular, the effective implementation of Directive 40-CT/TW has brought a "new wind " to social policy credit, creating a strong change in leadership capacity and effectiveness in performing political tasks.

After five years of carrying out Directive No. 40-CT/TW, the system of policies and laws on social policy credit has been improved, while resources have been added and enhanced. The National Assembly and Government have allocated medium-term public investment capital from the State budget in the 2016-2020 period for the policy credit fund, helping the VBSP improve its financial capacity.

Thang said that right from the beginning of the term, the bank’s Party Committee has directed the Executive Board to focus on mobilising all resources and speeding up disbursement of credit programmes to promptly meet the capital needs of poor households, near-poor households and other policy beneficiaries, with priority given to allocating credit sources for ethnic minority, mountainous, remote, border and island areas.

As of July 31, total credit reached 231.5 trillion  VND, an increase of 89.8 trillion VND from 2015, with an average annual growth rate of 10.1 percent. With more than 20 policy credit programmes underway, the total outstanding loans hit 220.56 trillion VND, a rise of 84.87 trillion VND compared to the beginning of the term, with over 6.5 million poor and near-poor households and other policy beneficiaries./.