This capital source is a "leverage" to help people have stable jobs and increased income, while reducing the local unemployment rate.

The project was approved in January 2023 by the provincial People's Committee, with the goal of supporting production and business establishments to borrow capital to create jobs and attract new workers, avoiding partial underemployment and reducing the unemployment rate, contributing to ensuring social security, stabilizing order, and minimising usury or “black credit”. The project is funded by the central and local budgets.

The Bao Phat dumpling production facility in Hoang Van Thu ward, Bac Giang city is one of the units receiving loans to expand production and business scale, creating jobs for workers.

In 2013, Vuong Van Quyen's family started making dumplings and selling baking tools. With the smooth sale, last year, the family expanded its bakery. Quyen shared: "When expanding the bakery, I was instructed by the VBSP Bac Giang to borrow 500 million VND (19,800 USD) for five years with a preferential interest rate of 7.92% per year. With the loan, I built another bakery and installed a cold storage system. Every day, the facility produces 3,000-4,000 dumplings, earning monthly revenue of 350-400 million VND and creating stable jobs for seven workers.”

Similarly, early last year, the Sao Than Nong Cooperative in Tien Dung commune, Yen Dung district got a 800 million VND loan from VBSP Bac Giang with preferential interest rates for five years to invest in repairing the cold storage system and machinery serving the production of fragrant rice, potatoes and watermelon, and the purchase of local agricultural products.

According to Nguyen Thi Nhung, Director of the cooperative, thanks to the loan, the cooperative has the conditions to maintain stable production and business activities and proactively purchase agricultural products from farmers. In the first six months of this year, the cooperative's revenue reached more than 50 billion VND (1.98 million USD), about 5 billion VND higher than last year. The cooperative is creating direct jobs for seven workers and dozens of indirect jobs."

To date, more than 9,000 projects of organisations and individuals in the province have got loans with a total outstanding debt of more than 760 billion VND (30.1 million USD). Through these projects, the province has created jobs for 9,200 workers.

The maximum loan amount for production and business establishments is 2 billion VND per project and not more than 100 million VND per employee. The maximum loan term is 120 months, and interest rate is equal to that for near-poor households, 7.92%/year.

Nguyen Van Canh, Deputy Director of VBSP Bac Giang, said that lending for job generation is one of the important programmes helping people have conditions for economic development and sustainable poverty reduction. Therefore, during the implementation of the project, the bank has fully, promptly and publicly deployed relevant policies. At the same time, it has coordinated with relevant departments and agencies to create favourable conditions for people to access loans.

By 2025, the province’s population is forecast to reach nearly 2 million, including 1.2 million of working age. According to the project, the province strives to create stable and new jobs, maintain and expand employment for about 10,000 labourers by that year.

To achieve the set goals, VBSP Bac Giang will continue to coordinate with agencies, units, districts, townships and Bac Giang city to disburse capital in an open and transparent manner, targeting right persons. It will also take solutions to remove difficulties and obstacles to effectively implement the project.

Minh Linh

 

 

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