LIST OF ABBREVIATIONS
STT
Acronym | Write in full | |
1 | Real estate | Representative Board |
2 | CT-XH | Politics - Society |
3 | GQVL | Employment |
4 | People's Council | People's Council |
5 | Board of Directors | Board of Directors |
6 | Students | Students |
7 | Social Policy Bank | Social Policy Bank |
8 | State Bank of Vietnam | State Bank |
9 | Commercial Bank | Commercial Bank |
10 | State budget | State budget |
11 | NSVS&MT | Clean water, sanitation and environment |
12 | Production and business | Production and business |
13 | TCTD | Credit institutions |
14 | TK&VV | Savings and loans |
15 | People's Committee | People's Committee |
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LIST OF TABLES, CHARTS, FIGURES
STT
Name of table, diagram, drawing | Page | |
Table 2.1 | Outstanding debt situation according to the loan program for the period 2018-2021 | 44 |
Table 2.2 | Results of implementing GQVL loans at the Hanoi City Branch of the Vietnam Bank for Social Policies in the period 2018-2021 | 54 |
Table 2.3 | Outstanding loans by capital source at the Social Policy Bank, Hanoi Branch, period 2018-2021 | 57 |
Table 2.4 | Outstanding loan situation for GQVL at the Social Policy Bank, Hanoi Branch, period 2018-2021 | 58 |
Table 2.5 | Rate of households borrowing GQVL loans at the Social Policy Bank, Hanoi Branch, period 2018-2021 | 60 |
Table 2.6 | Rate of bad debt, overdue debt from GQVL loans at the Social Policy Bank, Hanoi Branch, period 2018-2021 | 61 |
Table 2.7 | Data assessing customer satisfaction with the loan program for the poor at the Hanoi Branch of the Vietnam Bank for Social Policies | 65 |
Diagram 2.1 | Organizational structure of the Hanoi City Branch of the Vietnam Bank for Social Policies | 36 |
Diagram 2.2 | GQVL Program Trust Lending Process | 52 |
Figure 2.1 | Capital scale at Hanoi Branch of the Vietnam Bank for Social Policies in the period 2018-2021 | 42 |
Figure 2.2 | Outstanding loans for GQVL by lending method at the Social Policy Bank, Hanoi Branch, period 2018-2021 | 56 |
Figure 2.3 | Proportion of outstanding loans to GQVL in 2021 | 59 |
Figure 2.4 | Proportion and outstanding loans through social organizations in 2021 | 64 |
SUMMARY OF THESIS RESEARCH CONTENT
The topic "Developing lending activities to solve employment at the Social Policy Bank, Hanoi Branch" includes 3 chapters:
Chapter 1: Theoretical basis for developing lending activities to solve employment at the Social Policy Bank.
Chapter 2: Current status of loan development for job creation at the Social Policy Bank, Hanoi Branch.
Chapter 3: Solutions to develop lending activities to solve employment at the Social Policy Bank, Hanoi Branch.
Based on theoretical requirements, practical operations and the awareness that job creation lending is a target program, accounting for a large proportion of the total outstanding loans at the Social Policy Bank, Hanoi Branch. In reality, as society develops, especially in large cities like Hanoi, the rate of poor and near-poor households decreases, initial lending programs such as lending to poor and near-poor households no longer target borrowers, although the demand for personal loans for production and business is still very large. Therefore, it is necessary to develop job creation lending activities to meet the capital needs of workers.
The Social Policy Bank Hanoi Branch is one of the branches with good performance and contributes significantly to the success of the Social Policy Bank system. Employment lending activities at the branch have been deployed and achieved certain results. Besides positive developments, employment lending activities still have shortcomings and limitations in terms of borrowers, loan amounts, technology, etc. That affects the ability to expand the number of customers, leading to an impact on credit growth. The expansion of employment lending activities has not really changed strongly, is limited in scale, and customers rarely know about the bank's policy lending program.
Chapter 1 of the thesis has outlined and discussed some basic issues of employment, job creation and development of lending activities to solve employment at the Bank.
social policy bank. Thereby, the thesis points out the evaluation criteria, the factors affecting the development of lending activities to solve employment, creating the necessary theoretical framework to orient the research of the current situation, finding the limitations and causes in the development of lending activities to solve employment, thereby proposing solutions to develop lending activities to solve employment at the Social Policy Bank, Hanoi Branch in Chapters 2 and 3.
Based on the theoretical contents mentioned in Chapter 1, Chapter 2 analyzed and evaluated the current status of job creation lending activities at the Vietnam Bank for Social Policies, Hanoi Branch in the period of 2018-2021, analyzed and clarified the achieved results, existing limitations and causes of those limitations and shortcomings, as a basis for proposing solutions to develop job creation lending activities at the Hanoi Branch.
Chapter 3 has outlined some orientations and development goals of the Social Policy Bank, Hanoi Branch in developing lending activities to create jobs in particular. To achieve that development goal, the Social Policy Bank, Hanoi Branch needs to resolve the limitations mentioned in Chapter 2. The author has proposed some solutions as well as recommendations to the Government, all levels, Departments, Branches and Head Office to resolve the limitations and at the same time develop lending activities to create jobs at the branch in the future.
Contribution of the thesis:
Although in Vietnam there have been a number of research projects on developing lending activities to solve employment at the Social Policy Bank, the implementation of one, several or synchronous proposed solutions is still limited. In addition, to develop lending activities to solve employment also depends on capital sources, the number of workers in each locality is different, depending on each period. Based on that reality, the thesis focuses on the following issues:
- Overview of basic issues on developing lending activities to solve employment at the Social Policy Bank.
- Current status of job creation lending activities at the Vietnam Bank for Social Policies, Hanoi Branch in the period of 2018-2021, presenting the achieved results, shortcomings, limitations and causes of those shortcomings and limitations.
- Practical and feasible solutions to develop lending activities to solve employment at the Social Policy Bank, Hanoi Branch .
Limitations of the thesis:
Although the author has tried to seriously research the current situation of the development of lending activities to solve employment, the thesis certainly cannot avoid errors and limitations. The data source is not detailed, so the analysis of the current situation is not deep, the evaluation of the results of the development of lending activities to solve employment is not really detailed, leading to the solutions are not complete, not detailed, and still general. The author hopes to receive contributions from researchers to make the topic more complete.
INTRODUCTION
1. Urgency of the topic
In the process of international economic integration, the issue of employment plays an important, urgent and long-term role in the sustainable development of the economy. It can be seen that Vietnam is a country with a large population, a relatively young population pyramid and is in the period of "golden population structure" with the most abundant human resources ever. Population growth in recent years has led to an increase in the labor force, which means an increase in the demand for jobs. If the issue of job creation is not resolved, it will not only have an economic impact but also create negative impacts on social aspects. Therefore, the issue of job creation for workers is identified by the State as one of the important and core criteria in socio-economic development in the integration period.
The establishment and development of the Vietnam Bank for Social Policies (VBSP) aims to focus State resources on implementing lending policies for the poor and policy beneficiaries, contributing to the implementation of the national goal of hunger eradication and poverty reduction, job creation, and ensuring social security. The VBSP has the mission of implementing the National Inclusive Financial Strategy, and is a specialized financial institution with an operational orientation consistent with the goal of inclusive finance. One of the basic goals of the inclusive financial strategy is to pay special attention to the target group of people who have not had access or have little access to financial products and services such as: people living in rural areas, remote areas; the poor, low-income people, women and other vulnerable groups, small and medium enterprises, micro-enterprises, cooperatives, and production and business households.
For the capital Hanoi, the economic and political center of the country, due to the strong urbanization process in recent years as well as the impact of the global economic crisis, the unemployment rate is always high. Along with the high economic growth rate, the market economic mechanism is increasingly perfected, leading to
The large gap between rich and poor has led to many pressing social problems that need to be solved, especially the problem of job creation.
Grasping that situation, with the assigned functions and tasks, the Hanoi Branch of the Vietnam Bank for Social Policies has actively conveyed the Government's loan capital for job creation (GQVL) to each borrower to support job creation, attract labor and achieve certain results. Loans for job creation currently account for a large proportion of outstanding loans in the total outstanding loans at the branch. This is a loan program with profound humanitarian significance in terms of economy, politics and society, creating high consensus among sectors, levels and the social community. However, in addition, in the process of loan implementation, there are still certain limitations arising from many causes such as credit risks, loan capital sources, professional qualifications of bank staff and related individuals, and appraisal work that has not fully met the loan needs of people in the city. Therefore, the branch needs to have a plan to restructure the outstanding debt ratio, increase the outstanding debt ratio of loans for job creation in the branch's credit activities, in order to increase the number of workers accessing preferential credit capital from the state.
Based on theoretical requirements, practical operations and the desire for policy lending activities to develop more and more to meet the goals of poverty reduction, job creation, new rural construction and social security, I chose the topic "Developing lending activities to solve employment at the Bank for Social Policies, Hanoi Branch" for research.
2. Overview of the thesis research
The State's credit policy is a special type of credit, credit for the poor and other policy subjects contributes to the implementation of the national target program on hunger eradication, poverty reduction, and social stability, in which preferential credit for job creation loans is a lending program designated by the Government, with its own characteristics and different from other types of loans of commercial banks.
Authors in Vietnam in recent years have initially researched preferential credit for poor households and other policy subjects, specifically:
Mr. Nguyen Trung Tang's PhD thesis in Economics (2002): "Credit for the poor and poverty reduction funds in our country today", focuses on studying the current status of credit for the poor and the activities of poverty reduction funds in Vietnam, proposing solutions to improve the efficiency of credit activities and create loan capital through poverty reduction funds.
Doctoral thesis in Economics by Ms. Ha Thi Hanh (2004): "Solutions to perfect the organizational model and operating mechanism of the Social Policy Bank", focusing on studying the organizational model and operation of the Social Policy Bank, thereby improving the efficiency of credit capital to support the poor.
Nguyen Hong Phong (2007), in his doctoral thesis on "Solutions to enhance the operational capacity of the Vietnam Bank for Social Policies", proposed a group of solutions to enhance the operational capacity of the Vietnam Bank for Social Policies, including: Solutions for the People's Committees of districts and cities; solutions for the Board of Directors at all levels; solutions for the Vietnam Bank for Social Policies branches; solutions for entrusted organizations and unions; solutions for relevant departments and branches.
Tran Huu Y (2010), “Building a sustainable development strategy for the Vietnam Bank for Social Policies”. In the thesis, the author has provided the most basic theoretical foundations on sustainable development as well as stated the current status of sustainable development of the Vietnam Bank for Social Policies. The author has also pointed out the remaining problems in capital mobilization of the Vietnam Bank for Social Policies such as: the diversity of capital sources is not high, the form is not attractive, leading to limited results in direct capital mobilization.
Tran Lan Phuong (2016), with her doctoral thesis on “Improving the management of policy credit of the Social Policy Bank”, the thesis has outlined the current status of the Government's preferential credit programs for the poor and policy beneficiaries. Policy credit programs not only help solve financial problems but also contribute to reducing the low literacy rate,