Policy beneficiaries have quick access to capital to invest in production, livestock, business and services. From the capital borrowed from the Bank through the trust and support of the Association, women who have received loans have actively worked with family members in production, studied and applied new knowledge, effectively reducing poverty. Thereby, helping more than 2,269 women's households escape poverty, creating a foundation for many women to develop production, business, and strive to become rich legitimately.
- Through the delegation activities, the Association at all levels has promoted its role in creating conditions and supporting women, especially poor women's households, to have the opportunity to directly access favorable loan sources, helping women improve their autonomy in economic development, reduce poverty, and connect members with the Association and the government. At the same time, it has contributed to improving the quality of policy credit; actively contributing to socio-economic development and implementing the poverty reduction target of the locality.
4.3.2.2. Difficulties of women's associations in the process of implementing loan entrustment between social policy banks and socio-political organizations in the commune
- The work of checking and supervising the use of capital by borrowing households has not been regular, so it has not been possible to promptly grasp and handle households that borrow capital for production investment and encounter risks; some households have changed the purpose of use or used it for family activities, so they have gradually lost capital, leading to a high rate of overdue debt... In the work of mobilizing and urging debt collection, especially overdue debt, for savings and loan groups, it has not been regular; some units have not properly handled overdue debt households, which has led to some poor households still being sluggish; the living regime of savings and loan groups has not been regular; the work of perfecting the personnel of groups managed by the Association has been slow to be implemented.
- Strengthen the role and responsibility of the Association in debt collection, especially overdue debt and due debt for households that have overcome poverty to continue to provide new loans and minimize the rate of overdue debt for poor and near-poor households in the area.
4.3.3. Advantages and disadvantages of households entrusted with loans for the poor between the social policy bank and socio-political organizations in the commune
4.3.3.1. Advantages of households entrusted with loans between social policy banks and socio-political organizations in the commune
- The rural credit market in the commune has a large network of organizations, increasing the ability of poor households to access capital. The capital source is quite strong and concentrated, ready to provide credit capital for households to borrow for production.
- Thanks to the capital entrusted to lend to poor households, production results and efficiency in both quantity and quality have increased, helping poor households increase their income and create a stable life for the people.
- The quality of service and reputation of credit organizations have been gradually improved significantly. Credit officers in villages and communes are very enthusiastic and close to the people, thus creating favorable conditions for disseminating and propagating credit knowledge to households, helping them easily access capital sources in the area.
- Loans from official credit institutions have helped households solve the problem of lack of capital in life and other necessary purposes.
4.3.3.2. Difficulties of households entrusted with loans between social policy banks and socio-political organizations in the commune
Despite having a large network of organizations, rural credit institutions still have strict lending regulations that cannot meet the borrowing needs of households. For example, borrowing from the Social Policy Bank and associations cannot borrow too large a sum of money, so when needing large capital, households are forced to find other sources of loans with high interest rates.
higher interest rates than private loans and loans from the NHNo&PTNT. But to borrow from the NHNo&PTNT, you need to have collateral, so if you don't have collateral, households can only find private loans with very high interest rates.
- The quality of the entrusted services of the Association and organizations, especially the direct implementation of the Association and organizations at the commune level, is not thorough, not really proactive in fully implementing the contents of the entrusted work such as low quality of inspection and supervision, formal post-lending inspection, not checking the activities of the Savings and Credit Group, incomplete record keeping, not regularly participating in guiding customers to make transactions at the Commune Transaction Point, not specifying in writing the unification of the regulations on using the entrusted fees, and documents for payment and settlement of expenditures from the entrusted fees are still lacking.
- Some groups have made mistakes in setting up records, in some cases guiding households to make records that are not in accordance with the actual purpose of using capital; Most of the loan groups have not maintained their activities according to regulations, mainly focusing on collecting interest and savings from households. Meeting minutes are sketchy and lack content, some groups have not promptly disseminated information to help borrowing households understand the policy and purpose of mobilizing savings at the Loan Group, so the rate of borrowing households participating in savings is low, even not participating in monthly savings.
- The majority of households in the poor household group only have access to small amounts of preferential capital. Part of the reason is due to the cultural level of this group of households, when borrowing capital to do business and losing money, they are afraid of not being able to repay the debt.
- Borrowers of the People's Credit Fund and associations are very limited.
- Households that want to borrow a lot of capital to expand production investment on a large scale but are not given loans because these plans are only effective in the future and credit officers cannot predict the effectiveness of the loan, so they cannot ignore the risks that may occur with their capital.
If a loan does not generate profit, it cannot be repaid, so credit institutions will not risk lending.
4.4. Proposing solutions to increase access to entrusted capital for lending to poor households and effectively use borrowed capital for household economic production and poverty reduction in Bang Thanh commune, Pac Nam district, Bac Kan province.
4.4.1. Proposing solutions to increase access to entrusted loan capital for poverty reduction in particular and household economic production in general in Bang Thanh commune, Pac Nam district, Bac Kan province.
4.4.1.1. Bang Thanh Commune Government
- Bang Thanh commune government must promptly disseminate the Government's preferential credit policies and regulations of the Vietnam Bank for Social Policies so that poor households and other policy beneficiaries know or have correct awareness of preferential credit policies, leading to more complete participation and fulfillment of borrowing obligations.
- Training and coaching of Women's Union officials and Savings and Credit Group officials must be proactive, not waiting for the Social Policy Bank and the superior Union.
- Commune authorities need to coordinate with the VBSP and actively advise Party committees and authorities at all levels to effectively implement Directive 40-CT/TW of the Central Secretariat to enhance the leadership and direction of local Party committees and authorities on policy credit activities in the area.
- Local authorities assist authorized households in certifying records and providing technical support to help farmers produce and do business effectively, improve their lives as well as develop the local economy.
4.4.1.2. For women's association
- The Women's Union needs to regularly inspect and monitor the use of capital by borrowing households, promptly grasp and handle households borrowing capital for production investment; some households change the purpose of use or use it for capital-losing activities, leading to overdue debt.
- The Women's Union strengthens the role and responsibility of the Union organization in debt collection and due debt for households entrusted with loans.
- The Women's Union must regularly analyze and evaluate the credit quality of borrowers, review overdue debts to promptly direct, urge and collect debts to improve the quality of outstanding debts, limit the use of debt extension measures and minimize the occurrence of bad debts, and propagate to raise borrowers' awareness in capital use and performance of bank debt repayment obligations.
- The Women's Union enhances its role and responsibility in performing tasks at the Commune Transaction Points, promptly grasps and handles arising issues of the Savings and Credit Groups under the management of the Union.
- The Women's Union needs to coordinate with the Vietnam Bank for Social Policies to strengthen training and coaching activities, ensuring that 100% of staff participating in social policy credit activities receive professional training.
- Along with lending capital, the Association at all levels does a good job of consulting, guiding the construction and replication of typical production and business models, helping each other escape poverty and become rich so that capital brings high efficiency.
For example :
Mr. Hoang Van Ngon - Chairman of Bang Thanh Commune People's Committee said: Through years of propaganda to implement forest planting work according to Project 147, in recent years Bang Thanh Commune has always been the leading commune in forest planting in Pac Nam. Up to now, people in the commune have had forest products to sell, creating jobs, people are aware of the path to hunger eradication and poverty reduction through forest planting to have products and stable income for their families.
People invest borrowed money to plant forests on exploited areas.
Currently, the movement to protect and develop forests in Bang Thanh commune is developing strongly, especially the economic forest planting movement. Because people have realized the meaning and importance of the great benefits both in the short term and in the long term.
People no longer worry about product output like before.
Mr. Luc Van Ban - Ban Khua village, Bang Thanh commune added: His and the people in the commune's wish is that the government considers creating conditions for people to plant forests on poor forest areas with no economic value. Support people with capital as well as science and technology to develop the forest economy, because in reality, planting forests is the most suitable development direction in the commune today, especially planting acacia trees. Acacia leaves will decompose by themselves to create fertilizer, thereby keeping the soil fertile. Especially now that the commune has a wood processing workshop, the products that people make can be consumed as soon as they are made, and they no longer have to worry about product output like before...
Thanks to the implementation of mechanisms and support policies for forest growers, the forest area in Bang Thanh commune is always higher year after year. Farmers have effectively implemented afforestation in the direction of agroforestry, so the forestry industry is increasingly developing in a sustainable direction, and forests are managed more closely. Many bare hills and mountains are covered with green, while creating jobs and increasing income for people, contributing to hunger eradication and poverty reduction, improving the ecological environment and creating conditions.
conditions to promote local socio-economic development.
as the long-term benefits of forests and forest economy. With timely and reasonable policies of authorities at all levels in the goal of greening barren hills in general, and planting and developing economic forests in particular, many forest areas have been greened. Through the bold investment of people in planting forests, it has created significant income for many households. Currently, in Bang Thanh commune, planting forests has become a movement to develop household economy in a stable and solid manner, many households such as Mr. Luc Van Ban's family have boldly invested hundreds of millions of dong to open forestry roads to serve the planting, care and exploitation of forests.Author: Nhat Huan (Pac Nam Radio and Television Station) |
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- Women's Unions need to encourage and further promote the method of entrusted lending through associations to create a capital market that meets local needs for people, helping people not to have to travel much but to have more convenience in borrowing capital.
4.4.1.3. For borrowers
- Households entrusted with loans must establish accurate records and use capital for the correct purpose of actual use.
- Households borrowing through trust in the poor household group need to have access to a large amount of preferential capital and it is necessary to expand the borrowing objects of the Vietnam Bank for Social Policies.
- Improve the production capacity of households entrusted with loans for production so that they can expand production and business activities on a large scale, increase production and business planning capacity, improve their production level and understanding of credit institutions so that they can more easily access credit sources.
- Limited qualifications and limited understanding of the credit market have reduced the ability of production households to access and use capital, so households that borrow through the trust must proactively approach and learn about credit programs. From there, choose programs that are suitable for them, which will contribute to improving the efficiency of households' use of entrusted loans.
4.4.2. Proposing solutions to effectively use entrusted loan capital for poverty reduction in particular and household economic production in general in Bang Thanh commune, Pac Nam district, Bac Kan province.
4.4.2.1. On the part of local authorities
- The People's Credit Fund and authorized mass organizations continue to strengthen propaganda work on credit policy programs; rights and obligations of borrowers; answer people's questions to help them grasp the regime and policies; raise borrowers' awareness in using capital and fulfilling their obligations to repay bank loans.
- Actively shift the structure of crops and livestock, introduce high-value plant and animal varieties suitable for local conditions into production, and at the same time replicate effective production models. Expand and develop handicrafts and secondary industries, which are the conditions for effective use of entrusted loan capital by households.
- Create conditions for local households to consume all the annual agricultural products produced by households entrusted with loans. At the same time, help farmers stabilize agricultural product prices.
- The assigned commune cadres need to learn and grasp market information and promptly have the right orientations and strategies in developing local production and business.
- The authorized officials need to properly implement the land law, promptly allocate land and issue land use right certificates to the people according to the law, to facilitate intensive production to increase productivity and output of crops and livestock as well as facilitate people's borrowing.
- The entrusted cadres need to be trained and fostered for the agricultural sector. Continue to plan and reform the cadre team serving agriculture and rural development; this team must ensure a balance of people, a balance of types: Economics, Engineering, Biology, a balance of knowledge in each person between economics and engineering.
4.4.2.2. About credit organizations
- Women's Unions need to consider carefully to avoid the situation where some households can borrow from many sources, while others cannot borrow from any source. Lending through Women's Unions needs to have a plan to build a team of cadres with good professional expertise in credit, quick, enthusiastic in social work, understanding professional knowledge, and being in close contact with households entrusted with loans to do well and contribute to improving the efficiency of using capital entrusted to people from the beginning.
- The authorized credit institutions need to have a plan to disburse capital promptly, avoiding cumbersome procedures so that households have capital to invest in production and business.
- Before making a loan, credit officers of district and commune organizations need to carefully assess the loan projects, the capital capacity, and the effectiveness of the loan projects.
- Women's Union needs to diversify lending methods to help farmers easily and conveniently borrow capital.
- Women's Union needs to maintain long-term relationships with households entrusted with loans and loan groups/organizations to support each other in all aspects for mutual benefit, thereby also reflecting the needs and aspirations of production households towards credit institutions and vice versa.
4.4.2.3. On the borrower side
- When entrusted with a loan, the capital must be used for its intended purpose and the production project must be carried out immediately.
- Households entrusted with loans need to clearly recognize their advantages and limitations.
- Households entrusted with loans for production must always pay attention to monitoring and grasping market information, recognizing what products the market is and will need in order to make specific plans, identify plants and animals that need to be produced on a large or small scale, determine their own production capacity and then determine the amount of money needed to borrow to carry out production.
- Households entrusted with loans must know how to calculate and consider carefully when using capital and investing in which areas is most effective and brings high profits. This will ensure the household's ability to repay the debt.
- Households entrusted with loans must actively participate in all local training sessions to improve their knowledge of new production techniques and good business methods.
PART 5
CONCLUSION AND RECOMMENDATIONS
5.1. Conclusion
Above is the basis for research and entrustment of loans to poor households between social policy banks through women's associations in Bang Thanh commune, Pac Nam district, Bac Kan province. The author would like to draw some conclusions as follows.
The rural credit system in Bang Thanh commune has developed relatively strongly with the main credit institution being the Social Policy Bank. In addition, private credit sources, relatives and friends are also widely disseminated, helping to strengthen the village and neighborhood ties. These rural credit institutions have provided a large amount of capital to households in the commune through the women's association, helping households solve the most important problem in all production activities: capital.
The Women's Union has played an important role and greatly influenced the production and business activities of farming households. Many poor households, thanks to loans for production and their own efforts to do business, have escaped poverty, gradually stabilized their lives, affirmed themselves and developed. Credit capital has contributed positively to increasing income and reducing poverty for households.
The entrustment of loans to poor households by the Vietnam Bank for Social Policies, through the local women's association, has brought about great results. Members of the mass organizations play the role of credit officers who are truly close to the people and are trusted by them.
The ability of local people to access credit sources is relatively high, most households are able to borrow capital from one of the credit institutions operating in the commune, the commune has 745 households, of which 708 households borrow.
Loan capital from credit sources has supported and created conditions for localities and households to shift the structure of crops and livestock, implement the household contract mechanism in agriculture, and gradually improve productivity in agricultural production. The lending turnover of credit institutions has increased over the years, demonstrating the increasing ability of credit institutions to provide loans. This shows that the activities of credit institutions in the commune have been successful in mobilizing capital and lending capital to production households.
Poor, average and fairly rich households all produce effectively thanks to loans entrusted to poor households, however, average and fairly rich households produce more effectively than poor households.
Besides the achievements, the rural credit situation in the area still has many problems:
Credit sources have not yet met the needs of households in terms of interest rates, loan terms, etc., and loan amounts are still low compared to people's needs. Information and handouts about credit organizations and programs operating in the area to people are still very limited.
5.2. Recommendations
In order for the operations of credit organizations and programs to be effective, contributing to improving access to loan capital and effective use of loan capital, improving the lives of farmers, within the scope of the topic, I would like to make the following recommendations:
5.2.1. For local authorities
Strengthening the mutual relationship between the four houses: State - associations - scientists - farmers is an important solution to help poor households in the commune have stable development. Agricultural extension officers and agricultural officers must monitor and promptly forecast possible risks such as: drought, pests, landslides, etc. for the people to reduce damage as much as possible. Officers
The district authorities should increase their visits to the grassroots to monitor and direct the grassroots and savings and loan organizations to grasp the people's loan needs, and at the same time check the effective use of loans. Local authorities need to have policies to attract and create conditions to attract investment capital sources into the locality, promote and create a favorable environment for investors, including private investors, into the locality. Credit organization staff, the Department of Agriculture, and the Agricultural Extension Station should increase the opening of training courses in villages to improve farmers' knowledge about effective capital use and the application of science and technology in production.
5.2.2. For credit institutions
- For credit institutions, it is necessary to try to reduce interest rates to the lowest possible level so that people can afford to borrow capital. Increase the accessibility of credit institutions and programs to borrowers. To do this, there needs to be attention and coordination between credit institutions, authorities at all levels and borrowers to create a widespread rural credit network throughout the commune. Promote the positivity of Associations and Social Organizations, making them a direct, practical and close bridge, so that credit institutions can approach borrowers closely, gradually contributing to improving and enhancing the quality of credit services in the commune. It is necessary to further promote the role of credit officers to make lending activities more effective and increase credit documents to households. It is necessary to ensure that loans will be disbursed to the right subjects and for the right purposes. Avoid wasting capital on unfeasible economic development programs and projects.
5.2.3. For the people
- Boldly borrow capital to invest in production and business activities when borrowing through trust. It is necessary to be proactive and active in learning and applying scientific and technical advances in production, bringing high-value plant and animal varieties into production to increase income, increase economic efficiency, and contribute to