Hanoi (VNA) – Social policy credithas reached all the communal-level localities nationwide, greatly helping withefforts towards sustainable poverty reduction, heard a teleconference in Hanoion September 23.

The event, looking into the role andeffectiveness of social policy credit in poverty elimination, was held by thecentral steering committee for national target programmes for 2016 – 2020.

General Director of the Vietnam Bank for SocialPolicies (VBSP) Duong Quyet Thang reported that from 2016 through 2018, nearly8 million poor households and others with disadvantages received loans from theVBSP totaling 221.69 trillion VND (9.5 billion USD at the current exchangerate). 

That has helped more than 1.4 million householdsescape from poverty, created jobs for over 775,000 people, and assisted almost200,000 underprivileged students to continue their study. The lending has alsohelped build nearly 4.9 million rural water and sanitation facilities, alongwith more than 108,000 houses for the poor.

He noted social policy credit, part of which isentrusted to the VBSP by localities as well as domestic and foreignorganisations and individuals, has been funding more than 20 programmes andprojects so far. 

By the end of August 2019, total funds hadsurpassed 207.7 trillion VND while outstanding loans topped 199.82 trillionVND, up about 63 trillion VND and 57.29 trillion VND from 2015, respectively.The annual credit growth rate was 9.7 percent.

Vice Chairman of the Vietnam Farmers’ UnionNguyen Xuan Dinh said over the last five years, social policy credit entrustedto the union has become funding for over 3 million poor and near-poorhouseholds and other underprivileged groups to improve their livelihood. It hasalso benefited nearly 132,500 disadvantaged students and financed the buildingof over 2 million water and sanitation facilities, along with 115,000 housesfor low-income earners.

The credit has helped bring the householdpoverty rate down from 5.97 percent in 2015 to 5.5 percent in 2018 andpractically supported the new-style rural area building, Dinh added.

Recognising the effectiveness of social policycredit, Deputy Prime Minister Vuong Dinh Hue, head of the central steeringcommittee, said the VBSP and social policy credit form an important pillar ofthe national target programme on sustainable poverty reduction. Thanks to thispillar, the number of impoverished households declined “very fast” between 2015and 2018, helping to fight loan sharking and implement the national targetprogramme on new-style rural area building.

He asked local administrations to enhance theirleadership over social policy credit provision and better mobilise resourcesfor it.

The Deputy PM also requested the FinanceMinistry, the State Bank of Vietnam and the VBSP to consider proposals raisedat the meeting to improve its lending policy such as loosening lending limits,extending the term of loans given to the households that have just risen abovethe poverty line, and raising the limits of lending for production activitiesand clean water programmes.

From 2020 to 2025, the VBSP must raise itsannual credit growth rate to at least 10 percent, Hue said, calling on theVietnam Fatherland Front to promote the “For the poor” campaign to mobilisemore donations from organisations, businesses and individuals to increasecredit capital./.