12 tasks to develop Vietnam Bank for Social Policies by 2023

12 tasks to develop the Vietnam Bank for Social Policies by 2023 (Internet image)

12 tasks to develop the Vietnam Bank for Social Policies by 2023

12 tasks to develop the Vietnam Bank for Social Policies by 2023 include:

(1) Strengthening the Party's leadership on social policy credit

- Continue to organize research, popularize, and thoroughly grasp the contents of Directive 40-CT/TW dated and Conclusion 06-KL/TW with 100% of party organizations and grassroots in order to raise awareness of cadres, party members, and people about the position and role of social policy credit.

- Proactively propose and advise the Government, the Prime Minister, ministries, central agencies, Party committees, local authorities at all levels, closely coordinating with socio-political organizations to receive entrustment, in organizing the implementation of Directive 40-CT/TW and Conclusion 06-KL/TW.

- Promote the role and responsibility of supervision and social criticism on the part of the Vietnam Fatherland Front and socio-political organizations in the implementation of social policy credit.

(2) Completing the legal framework, mechanisms, policies, and regulations related to the organization and activities of social policy at the Vietnam Bank for Social Policies

Focus on reviewing, amending, supplementing, and perfecting legal documents, promptly promulgate mechanisms and policies related to social policy credit to mobilize, manage, and effectively use social policy credit resources; create conditions for the Vietnam Bank for Social Policies to expand and mobilize resources from individuals, organizations, and society; step by step expand the beneficiaries of social policy eligible for loans, increase the loan level and loan term in line with the objectives of the national target programs and the national socio-economic development goals. Specifically:

- Review, research, propose amendments, supplements to complete legal documents, mechanisms, and policies.
related to credit for social policies, preferential credit policies for the poor, and other policy beneficiaries appropriate to each period.

- Research and develop a Decree on the organization and operation of the Vietnam Bank for Social Policies; study and amend credit policies for the poor and other policy beneficiaries according to Decree 78/2002/ND-CP; improve the mechanism of dealing with risky debts and the financial management mechanism for the Vietnam Bank for Social Policies.

- Review, amend, supplement, and promulgate mechanisms and policies to create a legal corridor for the Bank for Social Policy's capital mobilization activities on the basis of amending and supplementing a number of provisions of the law on concentration of capital mobilization for social policy credits.

(3) Concentrating resources for the Vietnam Bank for Social Policies to effectively implement social policy credit programs

- Concentrate state resources to effectively implement social policy credit programs and national target programs, ensuring the successful implementation of the Resolution of the 13th Party Congress in Vietnam. Allocate adequate and timely capital sources for the implementation of social policy credit programs in the medium-term and annual public investment plans and submit them to competent authorities for approval according to the provisions of the Law on State Budget and the Law on Public Investment, the charter capital is supplemented annually in proportion to the credit growth rate assigned by the Prime Minister.

- Concentrate policy credit capital sources from the state budget, charitable capital, and other lawful capital sources into the Vietnam Bank for Social Policies. By 2030, the capital allocated from the State budget will account for 30% of the total capital.

- Balance and prioritize the allocation of local budgets entrusted to the Vietnam Bank for Social Policies in order to supplement capital sources for the poor and other policy beneficiaries eligible to borrow social policy credits. By 2030, entrusted capital from the local budget will account for 15% of the total capital.

- Maintain a deposit balance at the Vietnam Bank for Social Policies equal to 2% of the capital mobilized in Vietnam dong by state credit institutions as of December 31 of the previous year.

- Research and report to the competent authorities on increasing the limit for issuing government-guaranteed bonds for the Vietnam Bank for Social Policies. By 2030, the capital from the issuance of bonds from the Vietnam Bank for Social Policies guaranteed by the government will account for 30% of the total capital.

- Maintain transaction activities on the interbank market, participate in the open market to diversify capital mobilization and use activities. Increasing capital mobilization in the market through the issuance of valuable papers, mobilizing capital from deposits and loans of domestic and foreign organizations and individuals in accordance with legal regulations.

- Organize campaigns for the poor to social organizations, businesses and individuals to mobilize additional capital for social policy credit. Encourage financial institutions, economic groups... to contribute to social policy credit capital.

(4) Implementing well the assigned social policy credit programs

- Coordinate closely with local authorities at all levels, socio-political organizations entrusted with organizing the effective implementation of social policy credit programs in order to promptly meet capital needs for production and business, create livelihoods, and improve living standards for the poor and other policy beneficiaries; contribute to realizing the goal of poverty reduction, building new countryside, fostering socio-economic development in ethnic minority and mountainous areas, and ensuring social security.

- Actively review and evaluate the results of the implementation of current policies to promptly propose amendments and supplements to suit the provisions of law, the practice of credit activities, social policies with innovation policies, expanding credit policies towards increasing the norm, expanding the borrower's access to production, and business projects that create livelihoods for the poor and other policy beneficiaries, especially ethnic minorities.

- Work closely with ministries, branches, and local authorities to organize the implementation of national target programs; ensure the effective integration of social policy credit with activities of industrial promotion, agricultural extension, forestry extension, fishery extension, technical assistance, technology transfer, and product consumption; train and guide people in basic finance and banking knowledge, personal financial management skills, and the effective use of loans; encourage borrowers to participate in building production models, linkage chains, cooperative groups, etc., in order to promote the effective use of social policy credits.

(5) Maintaining and promoting the effectiveness of the organizational model and credit management method with specific policies

- Promote the roles and responsibilities of the Board of Directors and Board of Directors at all levels in advising, formulating policies, directing, and supervising the implementation of the State's preferential credit policies and the effective and efficient administration of the Vietnam Bank for Social Policies. Research and supplement leaders of the Vietnam Fatherland Front, party committees, and a number of related ministries and branches to join the Board of Directors of the Vietnam Bank for Social Policies.

- Effectively carry out administrative work from the central to grassroots levels, proactively concretize and effectively implement programs, plans, resolutions, and assigned tasks.

- Strengthening the role and responsibilities of the Chairman of the commune-level People's Committee, the participation and supervision of the village head in the management of credit capital in the area in order to promote the efficiency of capital sources and improve the quality of credit for social policies.

- Socio-political organizations at all levels should improve their role in the implementation of social policy credit, the quality of entrustment activities, and ensure good management of social policy credit activities; focus on doing a good job of identifying and confirming the borrowers, inspecting, monitoring, and guiding the effective use of loans. Researching and perfecting the business process of entrusting a number of work items in the credit business process.

- Regularly consolidate and improve the operational quality of the Savings and Loan Group and the capacity of the Management Board of the Savings and Loan Group; well perform their roles and responsibilities in performing the tasks authorized by the Vietnam Bank for Social Policies; focus on strengthening inspection, supervision, and support for households to use loans for the right purposes and effectively with the motto "understanding people's hearts, serving wholeheartedly".

- Maintain and improve the quality of transaction activities at the Commune Transaction Office, concentrate human resources and equipment, and promote the application of information technology to ensure safe and effective transactions. Pay attention to how to effectively propagate and publicize undertakings, policies, and results of social policy credit implementation at Social Transaction Points in order to promote the role of people's supervision in the implementation of social policy credit.

(6) Improving the quality, effectiveness, and operational efficiency of the inspection and supervision system

- Strengthen the inspection and supervision of the Board of Directors at all levels, promoting the role of the Supervisory Board in the operation of the Vietnam Bank for Social Policies, and effectively associating supervision and internal audit activities with improving early warning capabilities for potential risks in the VBSP system.

- Improve the role, effectiveness, and operational efficiency of the inspection and supervision system; ensure independence; clearly define functions and tasks; and closely coordinate between inspection, control, and internal audit; innovate inspection and control methods and skills in line with the activities of the Vietnam Bank for Social Policies.

- Promote the supervisory role of the Vietnam Fatherland Front and socio-political organizations in the implementation of social policy credit; the subject's role of people in community monitoring; entrusting socio-political organizations to strengthen inspection and supervision of lower-level associations and mass organizations; improve the quality of inspecting the use of loan capital and supervising the activities of the Savings and Loans Group.

(7) Diversifying products and services with modern features, reasonable costs, and suitability for customers of the Vietnam Bank for Social Policies in Vietnam

- Research, develop, and diversify products and services in the direction of modernity, convenience, ease of use, and cost in accordance with demand and ability to pay of customers in rural, remote, and isolated areas, low-income people, disadvantaged people, small businesses, and cooperatives, in order to well implement the National Comprehensive Financial Strategy approved by the Prime Minister, in line with the activities of the Vietnam Bank for Social Policies.

- Standardize the process of producing products and services on the basis of compliance with the regulations of the State and the banking industry, in line with the system to ensure good service for the subjects of the Vietnam Bank for Social Policies.

- Upgrade the features of products and services provided by the Vietnam Bank for Social Policies to ensure security and safety in operations, create trust for customers, and protect users.

(8) Improving financial capacity to ensure stable and sustainable development of the Vietnam Bank for Social Policies in Vietnam

- Allocate resources with a reasonable structure to reduce input costs, support beneficiaries of policy credits, and effectively implement social policy credit programs.

- Efficiently allocate and use financial resources, use capital effectively, and improve labor productivity.

- Continue to implement the preferential interest rate mechanism suitable to the financial capacity of the State and the borrowers in each period. Interest rate preferences, differentiated by groups of beneficiaries, will gradually decrease and be replaced by preferential loan processes, procedures, and conditions. The highest level of preference is given to poor ethnic minority households and areas with special difficulties. For near-poor households, non-poor households are entitled to some preferential credit policies, and the interest rates are gradually approaching the market interest rates.

- Focus on development to increase revenues from service activities.

(9) Focusing on developing human resources toward high quality to meet mission requirements.

- Recruit  qualified human resources to meet the requirements of the development and application of science and technology, improving service quality to customers who are policy beneficiaries. Adopt policies to attract high-quality human resources suitable for social policy credits in remote, ethnic minority, and extremely difficult areas.

- Strengthen training, training to improve the qualifications of the staff and employees of the Vietnam Bank for Social Policies who are professional, have professional ethics, and are capable of applying information technology, advanced and modern working methods.

- Focus on planning, fostering, and arranging staff with sufficient qualifications, capacity, prestige, and health to meet task requirements.

- Organize training for staff working in entrustment and savings and loan groups to improve their knowledge and skills in implementing social policy credit.

(10) Improving the ability to manage and handle risky debt

- Develop a system of indicators for early recognition and warning of credit risks in order to limit risks in the process of implementing credit for social policies.

- Complete the regulations on debt classification, risk provisioning, and guidelines for handling risks due to objective causes that are suitable to the target audience; ensure publicity, transparency, and sufficient resources to handle risky debts.

- Timely, accurately, and objectively handling risky debts in accordance with regulations, in order to support beneficiaries to promptly remove difficulties, restore production, create livelihoods, and stabilize their lives.

(11) Promoting the application of information technology to meet the development requirements of the Vietnam Bank for Social Policies in Vietnam

- Develope an information technology system to meet the requirements of digital transformation and modernization of the banking industry, in line with the specific activities of social policy credit.

- Invest in and upgrade information technology systems in order to diversify products and services and improve operational quality.

- Deploying solutions to ensure security, safety, and confidentiality to ensure the continuous operation of information systems.

- Improve the quality of information technology and human resources to meet development requirements.

(12) Strengthening and improving the efficiency of international cooperation and communication work of the Vietnam Bank for Social Policies; continuing to review and simplify work procedures

- Expand international cooperation in order to exploit legal resources to improve the operational capacity of the Vietnam Bank for Social Policies and, at the same time, share experiences in social policy credit activities.

- Promote communication work, in which the focus is on communication to remote and isolated areas, ethnic minority areas, and especially disadvantaged areas in order to fully and promptly propagate the Party and State's guidelines and policies on social policy credit, contributing to increasing people's confidence in the Party and State.

- Continue to simplify the work settlement procedures to create favorable conditions for the service beneficiaries of the Vietnam Bank for Social Policies; at the same time, strengthen the inspection and supervision of state management agencies and people for social policy credit activities.

Decision 05/QD-TTg in 2023 takes effect from December 30, 2022.

Diem My

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