Clearly recognizing Lao Cai as a border province with a very important strategic position, rich resources with many different potentials, outstanding opportunities and competitive advantages, converging all the favorable conditions "except" to develop into a growth pole of the Northern Midlands and the whole country, becoming a center for economic trade connecting Vietnam and ASEAN countries with the Southwest - China, in recent years, the Lao Cai branch of the Lao Cai Social Policy Bank has not only effectively implemented the Government's policy credit programs but also actively and proactively advised the Provincial Party Committee, People's Council, Provincial People's Committee and all levels of the sector to prioritize local capital entrusted to build specific credit policies, as a driving force, increasing the strength of Lao Cai's endogenous development for sustainable development.
Welcoming the working delegation led by General Director of the Vietnam Bank for Social Policies Duong Quyet Thang, Director of the Lao Cai Provincial branch of the Lao Cai Provincial Bank for Social Policies Nguyen Hai Ha happily reported that the Lao Cai Provincial People's Committee has allocated VND 140 billion in local budget capital entrusted to the Vietnam Bank for Social Policies according to the plan for 2025. Compared to the plan assigned by the Central Government of 60 billion VND, the branch has exceeded the plan by more than 230%, the General Director of the VBSP assessed: This is not the first year that the local capital entrusted to the branch has grown at a 3-digit level. Previously, in 2024, the growth rate of capital entrusted from local budgets reached 497% of the annual growth plan corresponding to over 149 billion VND, an increase of 48.8% compared to 2023, bringing the entrusted capital to over 553 billion VND, accounting for 11.1% of the total credit capital of the branch.
Director Nguyen Hai Ha said that this result is the result of the efforts of all cadres and employees of the branch in advising local Party committees, authorities, and relevant units to effectively implement Directive No. 40-CT/TW, Conclusion No. 06-KL/TW and the initial results of implementing Directive No. 39-CT/TW dated October 30, 2024 of the Central Party Secretariat on improving the effectiveness of social policy credit in the new period.
In particular, in the past two years, continuing the foundation of many local capital entrustment programs through the provincial branch of the Social Policy Bank has been successful. Previously, in 2024, the advisory branch of the Provincial Party Committee, People's Council, and People's Committee issued many separate credit policies to support vulnerable groups in the locality as well as support people to take advantage of the province's advantages to develop the economy. Among them, it is necessary to mention the Standing Committee of Lao Cai Provincial Party Committee issuing a Resolution on supporting house building for households with meritorious services to the Revolution, relatives of martyrs, poor households, and near-poor households in the area until 2025. The Standing Committee of the Provincial Party Committee has highly agreed on the policy of assigning the Provincial People's Committee to discuss with the Provincial Fatherland Front Committee to immediately transfer 80 billion VND entrusted to the Provincial Social Policy Bank to lend for houses to households with housing difficulties that are unable to match or have low counterpart funds from the Provincial Relief Fund. The provincial branch of the VBSP reported and advised the Provincial People's Committee to direct the determination to transfer the local budget to supplement 48 billion VND from lending capital according to Resolution No. 06/2021/NQ-HDND dated April 9, 2021 and Resolution No. 06/2019/NQ-HDND dated July 10, 2019 of the Provincial People's Council, and at the same time submitted to the Provincial People's Council to amend and supplement Resolution No. 06/2021/NQ-HDND dated April 9, 2021 of the Provincial People's Council regulating a number of policies to support tourism development in Lao Cai province, period 2021-2025.
In particular, at the end of 2024, Lao Cai is one of the localities that suffered heavy damage due to natural disasters, the material and spiritual flood circulation of storm No. 3 (Yagi), especially poor households and vulnerable groups, the provincial branch of the Provincial Social Policy Bank has promptly reported and proactively advised the Provincial People's Committee to direct the implementation of Resolution No. 143/NQ-CP dated September 17, 2024 of the Government on key tasks and solutions to urgently overcome the consequences of storm No. 3. In which, consider adding resources for the VBSP to lend to credit programs being implemented at the VBSP, especially loans to poor households and other policy beneficiaries.
Or to have a breakthrough figure on local capital entrusted since the beginning of this year, in December 2024, the branch submitted to the Provincial People's Council a budget expenditure plan for 2025, the amount entrusted to the VBSP is 62 billion VND at the 24th Session. At the same time, continue to advise the Provincial Party Committee and the Provincial People's Committee to issue programs and plans to implement Directive No. 39-CT/TW on improving the effectiveness of social policy credit in the new period, Directive No. 34-CT/TW on strengthening the Party's leadership in the development of social housing in the new situation; pay attention to and prioritize the allocation of provincial budget capital in 2025 and the 2026-2030 period, in which priority is given to allocating provincial budget capital in 2025 and the 2026-2030 period to entrust the VBSP to lend for purchasing, leasing social housing, construction, renovation and repair of houses.
With a long-term vision and strategy, the Lao Cai branch of the Vietnam Bank for Social Policies not only develops a separate credit plan for 2025 but also plans for the next 3 years (2025-2027) and the next 5 years (2026-2030), in which the plan for the 2025-2027 period is expected to increase by 35% compared to outstanding loans implemented by the end of 2024 (assets of absolute growth of VND 1,549 billion). By December 31, 2027, the total outstanding loans of policy credit programs are expected to reach VND 6,472 billion. The 5-year plan for the 2026-2030 period is expected to increase by an average of about 58% compared to outstanding loans implemented by the end of 2025 (about VND 3,046 billion). By December 31, 2030, the total outstanding loans of policy credit programs are estimated at VND 8,000 billion.
In addition, the Provincial People's Council is advised to continue extending the implementation period to the 2026-2030 period of Resolutions No. 06/2021/NQ-HDND on a number of policies to support tourism development in the area, Resolution No. 06/2019/NQ-HDND on the use of local budgets entrusted through the VBSP to lend for socio-economic development in communes with a poverty rate of 40% or more of the province in the 2026-2030 period; Report and propose solutions to submit to the Provincial Party Committee and the Provincial People's Committee to allow Si Ma Cai district to continue using 46.3 billion VND to recover loans according to Decision No. 31/QD-UBND on supporting funding for communes in Si Ma Cai district to implement sustainable poverty reduction for loans by the end of 2030.
It is clear that the strong participation of local Party committees and authorities in policy credit activities has made policy credit more widespread and deeper in daily life, not leaving the poor and policy beneficiaries behind due to lack of capital. In 2024 alone, 23,705 poor households and other policy beneficiaries have been able to borrow capital to develop production and business, improve their lives with total lending turnover reaching over VND 1,594 billion; total outstanding policy credit reached VND 4,923 billion.
In particular, for customers affected by storm No. 3, in September and October 2024, all District Social Policy Bank Transaction Houses disbursed VND202 billion, helping 1,216 customers borrow capital to recover production and business, helping people soon stabilize their lives after unfavorable natural disasters. At the same time, immediately implement a 2% interest reduction as directed by the Prime Minister for customers eligible for outstanding loans from September 1, 2024 to December 31, 2024.
In 2024, social policy credit capital has supported investment in production and business for 23,705 poor households and other policy beneficiaries, including loans to poor households 5,383 households, 2,635 near-poor households, 1,213 households newly escaped poverty, creating jobs for 4,941 workers, 36 workers working abroad for a limited period and 35 people who have completed their prison sentences have access to employment capital; helping 68 students in difficult circumstances borrow capital to study; 4,847 households borrow capital to build new or repair clean water facilities and sanitary facilities in rural areas; build 35 social housing units for low-income people, ... contribute to stabilization and economic development, ensure social security, effectively implement the national target programs for sustainable poverty reduction, build new rural and social development in mountainous areas, ethnic minority areas. In 2024, the poverty rate in Lao Cai will decrease by 3.7%, equivalent to a decrease of 6,380 households; the near-poor household rate will decrease by 0.31%, equivalent to a decrease of 317 households. GRDP economic growth is estimated at 7.38%, higher than in 2023 (5.11%); GRDP per capita reached 97.5 million VND, an increase of 8.9 million VND compared to 2023. The economic scale is estimated at 78,000 billion VND, an increase of 11.8% compared to 2023.
Recognizing the achievements of the branch in 2024, especially in the first 2 months of 2025 with local trust capital exceeding the set plan, General Director of the VBSP Duong Quyet Thang emphasized the goal of the Lao Cai provincial branch in 2025 to have a credit growth of 10% compared to 2024.
Along with medium-term credit plans, there are still many challenges ahead as in 2024, Lao Cai province will still have 20,411 poor households, accounting for 11.24% of the total number of households in the province and 18,058 near-poor households, accounting for 9.94% of the total number of households in the province.
To be able to reach these goals, as well as continue to promote the pillar role of policy credit in local social security development, the General Director directed the branch to continue to actively and proactively advise local Party committees and authorities at all levels, departments and branches to effectively implement Directive No. 39-CT/TW; Social Policy Development Strategy to 2030, especially the target of capital entrusted from local budgets by 2030 accounting for 15% of total capital.
The General Director also directed the branch in the first months of this year to actively and proactively receive and mobilize capital sources, disburse timely and accurately to the right beneficiaries, comprehensively complete the targets and plans assigned by the Central and the province, contributing to maintaining economic stability, ensuring the safety of social policy credit activities, actively supporting the recovery and development of the socio-economy in the locality.
In addition, closely coordinate with relevant departments and branches to advise the Provincial People's Committee to effectively implement Directive No. 34-CT/TW dated May 24, 2024 of the Secretariat on strengthening the Party's leadership in the development of social housing in the new situation; pay attention to and prioritize the allocation of provincial budget capital in 2025 and the period of 2026-2030 to entrust the VBSP to lend for the purchase and lease-purchase of social housing, build and renovate houses in accordance with the direction of the Secretariat in Directive No. 34-CT/TW, Directive No. 39-CT/TW and the direction of the Government and the Prime Minister. Prioritize the allocation of local budgets entrusted to the VBSP to supplement lending capital according to Resolution No. 111/2024/QH15 dated January 18, 2024 of the National Assembly on a number of specific mechanisms and policies for implementing national target programs; Resolution No. 143/NQ-CP dated September 17, 2024 of the Government. At the same time, continue to advise the People's Committee and People's Council to continue implementing the province's own projects extending to the period of 2026-2030. Focus on widely disseminating to customers about opening and using the Mobile banking service of the Vietnam Bank for Social Policies, to contribute to the implementation of the national comprehensive financial strategy.
General Director Duong Quyet Thang believes that with the existing policy credit platform and the efforts of the staff and workers in the entire unit, social policy credit in Lao Cai border province will continue to have new breakthroughs and improvements, actively supporting the poor and vulnerable groups to rise up to a stable and sustainable economic development, immersing themselves in the new era of development - the era of the Vietnamese nation's rise.
