Customers conduct transactions at a branch of the Vietnam Bank for Social Policies. (Photo: VietnamPlus) Hanoi (VNA) – With effective implementation of the lending programme, over the past 19 years, the Vietnam Bank for Social Policies (VBSP) has become an effective tool in realising emergency credit policies, contributing to the country's poverty reduction cause.
In accordance with the Prime Minister’s Decision 23 on supporting employees and employers facing difficulties due to COVID-19, the VBSP has disbursed over 442 billion VND (19.4 million USD) to support labourers and employers affected by the pandemic in 63 provinces and cities, ensuring social security and maintain production in the new normal.
Earlier, the bank has coordinated with relevant ministries and agencies to propose the Government amend Resolution No. 68 and Decision No. 23 towards simplifying procedures, shortening the processing time for dossiers, creating favourable conditions for employees and employers to access loans.
“The policy of offering loan support to pay salaries for employees with work suspended and to recover production is very necessary during the complicated development of the pandemic, said Dao Minh Tu, deputy governor of the State Bank of Vietnam, adding that putting the policy into practice as soon as possible would help ease difficulties for businesses.
Since its establishment, the VBSP has only implemented three initial credit programmes including providing loans for poor households, students with limited resources and job creation programmes.
By 2010, the bank had developed 18 credit programmes based on the three initial ones, helping improve the incomes and lives of a number of people whose living conditions were lower than the average level of the country, thereby contributing to the realisation of the Government's goal for a balanced development of the economy and social stability.
However, the economic development strategy for the 2011-2020 period together with emerging challenges to Vietnam's poverty reduction required strong progress in policy credit, thus opening a new era for the operation of the banking sector. The VBSP continued to improve its capacity to not only effectively carry out the State's policy credits in supporting rapid and sustainable poverty reduction in the market economy but also contribute to the successful implementation of the socio-economic development strategy for the 2011-2020 period, a sustainable poverty reduction programme until 2020 and the national target programme on building new rural areas for the 2010-2020 period.
The financial capacity of the bank was strengthened in 2017 when it for the first time received capital from the State budget in the medium-term investment plan for the 2016-2020 period. In addition, it has got trusted capital from the local budget since 2014.
Many households have escaped poverty thanks to loans from the VSBP. (Photo: VietnamPlus) As of early October 2021, total credit capital had reached over 255 trillion VND (11.2 billion USD), of which, trusted funds received from the local budget accounted for nearly 25 trillion VND.
The VBSP has helped 6.4 million poor and near-poor households and policy beneficiaries access financial services. The total outstanding loans from credit programmes have so far hit 242 trillion VND.
Besides, the bank also contributed to the country’s fighting against the pandemic and develop the economy through social security work.
From 2020 until now, the VBSP has supported the COVID-19 prevention and control with a total amount of over 47 billion VND. This year, it provided over 40.7 billion VND for provinces and cities heavily affected by the pandemic to buy medical equipment, vaccines and other necessities.
The VBSP was awarded the “Labour Hero in the Renewal Period” title for its contributions to promoting sustainable poverty reduction, new-style rural area building and ensuring social welfare policies in the country in December last year.
As the situation in the world and the region is forecast to continue to be complicated and the COVID-19 pandemic won’t end soon, the VBSP plans to develop itself into a self-reliant organisation with sustainable development in the future. At the same time, the bank will maintain its role as a public financial institution implementing the Government's social policies.
Its objectives and solutions will be built in line with the socio-economic development strategy for the 2021-2030 period, the strategy for the development of the banking sector to 2025, with orientations to 2030 and the multi-dimensional poverty standard for the 2021-2025 period, contributing to the implementation of national target programmes for sustainable poverty reduction, new-style rural building, and socio-economic development in ethnic minority and mountainous areas./.
