Directive on enhancing the effectiveness of social policy credit in the new period in Vietnam

Directive on enhancing the effectiveness of social policy credit in the new period in Vietnam

On October 30, 2024, the Central Executive Committee of Vietnam issued Directive 39-CT/TW on enhancing the effectiveness of social policy credit in the new period.

The new situation, especially the complex and unpredictable impacts of traditional and non-traditional security issues, combined with the determination to achieve the goal of becoming a high middle-income socialist country by 2030 and a high-income country by 2045, necessitates enhancing the effectiveness of social policy credit. The Secretariat requires party committees, organizations, authorities, the Vietnam Fatherland Front, and socio-political organizations to thoroughly implement the following key tasks and solutions:

(1) Strengthen leadership, directive dissemination, understanding, and effective organization of Party policies, State laws regarding social policy credit to create a high level of unity in understanding the position and role of social policy credit. Thereby, affirm that social policy credit is a creative and deeply humanitarian solution, significantly contributing to ensuring the socialist orientation in implementing national target programs, social security policies, and socio-economic development of the country; reflecting the Party's viewpoint on sustainable, innovative, and inclusive development, linking economic growth with social development, economic growth alongside progress and social justice; placing humans at the center, leaving no one behind; serving as an economic tool in realizing the State's regulatory role in the socialist-oriented market economy; acting as a motivation, a resource for policy beneficiaries to actively participate in production, business development, and life improvement.

(2) Enhance the role of party committees, organizations, authorities, the Vietnam Fatherland Front, and socio-political organizations in social policy credit.

Identify social policy credit work as one of the key tasks in implementing the economic-social development planning, plans of units and localities, and the 10-year socio-economic development strategy from 2021 to 2030. Ministries and central authorities, local governments, and socio-political organizations should strengthen coordination in building and implementing social policy credit programs; provide training, technical support, technology transfer, and product consumption; build and expand models of effective production, business, and loan use. The Vietnam Fatherland Front and socio-political organizations should continue to perform well in propaganda, supervision, and social criticism functions in building and implementing the Party's policies, State laws on social policy credit. Political and social organizations should continue to effectively perform entrusted activities from the Vietnam Bank for Social Policies.

Enhance inspection, supervision, inspection, audit of mobilizing, managing, and using capital of the Vietnam Bank for Social Policies, avoiding corruption, waste, negativity; control and prevent risks that may affect the payment capability and operational effectiveness of the Vietnam Bank for Social Policies.

(3) Complete the system of social policy credit mechanisms and policies towards an inclusive, sustainable approach within the overall implementation of the 10-year socio-economic development strategy 2021-2030, the 5-year economic-social development plan 2026-2030, the national comprehensive financial strategy until 2025, with orientation to 2030, the development strategy of the Vietnam Bank for Social Policies to 2030, and national target programs.

Expand the scope, scale, target audience, increase loan amounts, loan terms appropriate to the objectives of national target programs, socio-economic development goals, the balancing capability of the State budget, development conditions, characteristics of each region, business cycle; focus on providing social policy credit to those affected by natural disasters, epidemics, poor students, and other urgent cases... Provide the highest preferential rate for poor households, ethic minority households, difficult areas, ethnic minority and mountainous regions; followed by near-poor households and newly emerged poor households; and other policy subjects. Adjust preferential levels to meet actual conditions.

Review, evaluate the effectiveness of existing social policy credit programs. Research and establish mechanisms to integrate social policy credit with national target programs, socio-economic development programs, projects, and social security policies; enhance credit support policies for production activities in chains, collaborative linkages to change production methods, increase fund utilization efficiency for the poor. Research criteria classification and process to identify poor targets, difficult areas, middle-income targets, promulgate multi-dimensional poverty standards for 2026-2030.

(4) Prioritize resource concentration, diversify capital mobilization channels to implement social policy credit programs, ensure operational capital allocation is placed in the medium-term and annual public investment plans for the Vietnam Bank for Social Policies, in which state budget sources and state budget-like sources are dominant, entrusted capital from localities is important, while increasing the mobilization of contributions from domestic and international organizations, enterprises, and individuals.

- Study to focus state budget origin capital and budget-like capital into the Vietnam Bank for Social Policies. Strive by 2030 for state budget capital allocated to the Vietnam Bank for Social Policies to account for 30% of total capital. Increase the limit on bond issuance guaranteed by the Government of Vietnam for the Vietnam Bank for Social Policies, aiming for this source to account for 30% of total capital by 2030. Establish mechanisms and policies for the Vietnam Bank for Social Policies to receive ODA and preferential loans from the Government of Vietnam. Localities should continue to pay attention and promptly allocate local budgets to entrust to the Vietnam Bank for Social Policies, aiming annually for about 15-20% growth in general credit outstanding of the Vietnam Bank for Social Policies and by 2030 to account for 15% of total capital.

- Continue to maintain the deposit balance of 2% of the mobilized capital balance in Vietnamese Dong from State credit institutions at the Vietnam Bank for Social Policies. Implement flexible mechanisms to mobilize resources beyond the state budget. Increase capital mobilization from deposits, loans, grants from domestic and international organizations, individuals; promote contribution campaigns to the "For the Poor" Fund to supplement capital for social policy credit.

(5) Develop the Vietnam Bank for Social Policies as a public financial institution, capable of self-management, operating not for profit, implementing the State’s socio-economic policies, focusing on areas where financial institutions operating under market principles cannot or can only partially fulfill.

- Continue to maintain the organizational model and specific management methods for social policy credit of the Vietnam Bank for Social Policies. Research and complete governance mechanisms, capital formation mechanisms, financial mechanisms of the Vietnam Bank for Social Policies towards stability and sustainability. Complete and enhance the quality and effectiveness of inspection, supervision systems, forecasting, analysis capacity; improve early warning abilities for potential risks in the Vietnam Bank for Social Policies system. Improve debt classification regulations, risk provision setup, ensuring debt safety appropriate with the characteristics and operational nature of the Vietnam Bank for Social Policies. Establish cooperation mechanisms with relevant agencies to monitor, supervise, urge, collect, and handle debts in credit activities.

- Build a team of the Vietnam Bank for Social Policies staff with professional competence, professional ethics, prestige, modern and professional working style, dedicated to serving the people. Continue to refine salary and income mechanisms to attract and stabilize the workforce of the Vietnam Bank for Social Policies.

- Simplify loan procedures, diversify products, develop appropriate service types, and modernize management and administration. Promote digital transformation, develop a digital banking platform, digitize management and policy implementation processes, ensuring security, safety, and confidentiality, focusing on connecting national and specialized databases to update and manage social policy credit beneficiaries.

(6) Research specific mechanisms and policies to strongly encourage social policy credit models, especially the participation of the community, social enterprises, nonprofits; encourage the development of digital platforms for policy credit, effectively control black credit.

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