35 SOLUTIONS TO IMPROVE THE EFFICIENCY OF CREDIT ACTIVITIES FOR POOR HOUSEHOLDS AND POLICY OBJECTS AT THE QUANG NINH BANK FOR SOCIAL POLICIES

MINISTRY OF FINANCE ACADEMY OF FINANCE STUDENT: LÊ MINH TRANG GROUP: CQ55/51.01 GRADUATION THESIS TOPIC: "SOLUTIONS TO IMPROVE THE EFFICIENCY OF CREDIT ACTIVITIES FOR POOR HOUSEHOLDS AND POLICY OBJECTS AT THE QUANG NINH BANK FOR SOCIAL POLICIES." Major : English for Finance and accounting Student code : 17522202010027 Hanoi – 2021 MINISTRY OF FINANCE ACADEMY OF FINANCE STUDENT: LÊ MINH TRANG GROUP: CQ55/51.01 GRADUATION THESIS TOPIC: "SOLUTIONS TO IMPROVE THE EFFICIENCY OF CREDIT ACTIVITIES FOR POOR HOUSEHOLDS AND POLICY OBJECTS AT THE QUANG NINH BANK FOR SOCIAL POLICIES." Major : English for Finance and accounting Student code : 17522202010027 Supervisor : M.A Pham Thi Lan Phuong Hanoi – 2021 Academy Of Finance Graduation Thesis DECLARATION I, Le Minh Trang, being a student of Faculty of Foreign Languages, hereby certify my authorship of the thesis submitted today entitled: Thesis: “Solutions to improve the efficiency of credit activities for poor house holds and policy objects at the Quang Ninh Bank for social policies.” I declare that the thesis and the study presented in it are my own and have been generated by me as the result of my own original research Hanoi, May, 2021 Student Le Minh Trang Lê Minh Trang CQ55/51.05 Academy Of Finance Graduation Thesis ABSTRACT Many studies provided evidence of the positive impact of credit activities for poor households and policy objects In most cases, the studies have focused on the direct effects of credit on household income and expenditure In this study, the author would like to exam the effect of credit on quality of life in Quang Ninh province as a part of study to find out whether this program has positive impact on the clients At the same time, from there, discover the remaining limitations in this part of the program, make recommendations to overcome and build the reputation of the Social Policy Bank Lê Minh Trang CQ55/51.05 Academy Of Finance Graduation Thesis ACKNOWLEDGMENTS A completed study would not be done without any assistance Therefore, the author who conducted this research gratefully gives acknowledgement to their support and motivation during the time of doing this research First of all, I would like to express my endless thanks and gratefulness to my supervisor Ms Pham Thi Lan Phuong - Head of the Foreign Language Department of the Academy of Finance Her kindly support and continuous advices went through the process of completion of my thesis Her encouragement and comments had significantly enriched and improved my work Without her motivation and instructions, the thesis would have been impossible to be done effectively I acknowledge my thankfulness to all staffs at Quang Ninh Bank for Social Policies who have supported, helped and provided me valuable suggestions and data during internship period Without their helps, it would be impossible for me to finish this thesis I also would like to show my sincere thanks to all the lecturers in the Faculty of Foreign Languages of Academy of Finance for tireless devoting time and efforts to enrich, broaden and deepen my knowledge over the past four years My heartfelt gratitude goes as well to the Faculty of Foreign Languages of Academy of Finance for giving me the opportunity and permission to implement this thesis I furthermore thank to all the lecturers who will mark and give constructive comments on this thesis My special thanks approve to my parents, my colleagues and my friends for their advice and encouragement to me I also deeply thank to all the people whose direct and indirect support assists me to accomplish my thesis in time Thank you all, in advance Lê Minh Trang CQ55/51.05 Academy Of Finance Graduation Thesis LIST OF ABBREVIATIONS HEPR VBSP WB IMF BRI IOS S&LO BSP Lê Minh Trang Hunger eradication and poverty reduction Vietnam Bank for Social Policies World Bank International Monetary Fund Bank Rakyat Indonesia International Organization for Standardization Saving and Loan Office Bank for Social Policies CQ55/51.05 Academy Of Finance Graduation Thesis LIST OF TABLES Table 1: Summary of credit funds for the period 2018-2020 22 Table 2: Lending results from the credit programs for the period (2018 - 2020) 25 Lê Minh Trang CQ55/51.05 Academy Of Finance Graduation Thesis TABLE OF CONTENTS DECLARATION i ABSTRACT ii ACKNOWLEDGMENTS iii LIST OF ABBREVIATIONS iv LIST OF TABLES v TABLE OF CONTENTS .vi INTRODUCTION CHAPTER 1: LITERATURE REVIEW 1.1 Overview of Bank in the market economy 1.1.1 1.2 Definition of Bank .3 Current types of banks in Vietnam .4 1.2.1 Commercial banks .4 1.2.2 Investment banks 1.2.3 Development banks .4 1.2.4 Cooperative Banks 1.2.5 Policy Banks 1.3 Bank Operations 1.3.1 Credit and the role of credit for the poor and beneficiaries of social welfare 1.4 The Vietnam Bank for Social Policies (VBSP) 1.4.1 Emergence and characteristics .8 1.4.2 Some countries with banks operating in accordance with a typical form like Vietnam Bank for Social Policies .10 1.5 Credit quality 12 1.5.1 Definition 12 1.5.2 Criteria for assessing credit quality 13 1.6 Factors influencing the operation efficiency 16 1.7 Factors affecting the quality of the operation 17 Lê Minh Trang CQ55/51.05 Academy Of Finance Graduation Thesis CHAPTER 2: THE STUDY 18 2.1 Vietnam Bank for Social Policies (VBSP) operational situation in Quang Ninh province from 2018 to 2020 18 Vietnam Bank for Social Policies' organizational structure and operation network in Quang Ninh province 18 2.1.1 18 2.1.2 Loan capital .20 2.1.3 Lending methods .20 2.2 Current situation of preferential credit to the poor and to the beneficiary of social welfare at VBSP branch in Quang Ninh province 22 2.2.1 Delivering targets on credit funds 22 2.2.2 Implementing credit programs, serving the social and economic development objectives of the Province 24 2.2.3 The implementation of the partnership with associations, unions and the Entrustment results 33 2.3 General assessment 34 2.3.1 Achievements: 34 Some existing and underlying causes .36 2.3.2 36 2.3.3 Experience and lessons 38 CHAPTER 3: RECOMMENDATIONS 40 3.1 Recommendations to the State 40 3.2 Recommendations to People's Committees at all levels 40 3.3 Recommendations to the Board of Directors of VBSP .41 3.4 Recommendations to the Savings & Loans group 41 3.5 Recommendations to the entrusted associations and mass organizations 42 3.6 Recommendations to VBSP Quang Ninh Branch .42 CONCLUSION .44 REFERENCES 45 Lê Minh Trang CQ55/51.05 Academy Of Finance Graduation Thesis INTRODUCTION RATIONALE OF THE STUDY Poverty is a global social issue After more than 30 years of the implementation of Doi Moi, which was initiated and led by the Communist Party of Vietnam, the economy has achieved a variety of crucial achievements The country is advancing tremendously on the path to industrialization and modernization as well as international integration; People's lives are increasingly being improved and enhanced; The economy and national status have recorded remarkable advancements However, we are facing a huge and complicated challenge, which is also a global issue, including: economic recession; monetary inflation, price escalation; People's lives, especially the poor, people with low incomes, those who live in remote areas, etc., are even more difficult Part of the population, especially people in rural, highland, remote, and island areas, etc., are subject to poverty, many of whom have not yet met the minimum standards of living The gap between rich and poor is complicated, which is being concerned by the whole society There are various causes of poverty such as natural disasters, epidemics, social evils, etc., but the key reason is the lack of business capital granted to the poor Therefore, it is defined by the Party and State that: Bank credit is an indispensable link in the system of socio-economic development policies for hunger eradication and poverty reduction (HEPR) in Vietnam At the 5th Central Committee Meeting (Session VII), our Party has proposed HEPR policy: "The poor shall be supported mainly through capital lending and business direction Funds for HEPR will be raised in each locality and the State will also assist the people by taking advantage of domestic and international humanitarian aid Efforts to increase the number of rich households will be made and HEPR policy will be motivated, etc.” (1) With the implementation of the Party's HEPR policy, on October 4, 2002, the Prime Minister issued Decree No 78/2002/ND-CP on Credit for the poor and other beneficiaries of social welfare; Decision No 131/QD.TTg established the Social Policy Bank (VBSP), on the basis of reorganizing the former Bank for the Poor to carry out loan policies for the poor households and other beneficiaries of social welfare Lê Minh Trang CQ55/51.05 Academy Of Finance Graduation Thesis same rates of others, because actual rates of Vietnam Bank for Social Policies are lower than those of other commercial banks Deposit mobilization plans of Vietnam Bank for Social Policies depend on the State’s interest compensation plan which hold the Bank inactive in deposit mobilization Online payment facilities such as Internet banking, QR pay, etc of the Bank have not developed and limit more credit balances on customers’ accounts Quang Ninh province has faster urbanization and the number of poor and near poor households have reduced gradually, consequently allocated supporting funds for those households have been limited However, there are still needs for lending supports to other communities, especially those in remote areas, border and island areas 2.3.3.4 The borrowers: Lending to the poor households and beneficiaries of social welfare embraces potentially high risks Beside causes like storms and floods, plant and livestock diseases, etc., in widespread areas, the households themselves not have good knowledge and experience in farming and business; produced goods are not marketable, etc Those facts negatively affected the credit’s effectiveness and lending quality In addition, there are other outstanding difficulties: low developing infrastructure in remote areas does not facilitate loan policies for the poor Credit loans to the poor and prioritized people are not in line with afforestation, agricultural stimulation programs, materials and technique provision for productions and markets for products 2.3.3.5 Loan’s effectiveness: Propaganda and training activities for household borrowers are not good enough, so , they think loans from Vietnam Bank for Social Policies are a social subsidy, as a result, many use it for the wrong purposes, such as for family's Lê Minh Trang CQ55/51.05 Academy Of Finance Graduation Thesis living needs; they still lack the sense of repayment obligations of principals and interests 2.3.3.6 Credit quality: Since the Bank’s customers are poor households and prioritized persons with limited awareness and ability to organize production and business activities, and to obtain technical, science and technology improvements; their living environment and daily activities often take place in difficult areas Those negatively affect loan efficiency The borrowers still have the attitude of heavy reliance on loans, and some even considers preferential credit policies as a grant They not have sense of self-discipline to repay the Bank's loans, this is the cause affecting the credit quality of Vietnam Bank for Social Policies 2.3.4 Experiences and reflectionslessons: Firstly, the coordination and collaboration among State management agencies, the Bank, socio-political organizations and savings and lending group established by residential communities, which results in a model to manage bypolicy credit channels to the poor and other prioritized people This is a management model that takes advantage of great resources of talents and materials, a practical solution to save social management costs and also a longterm strategic solution determining sustainable, highly capable and effective developments for operations of policy banks in general and for Vietnam Bank for Social Policies in particular The nature of by-policy credits comes from the State’s resources, requiring serious implementation of democratic and transparent management principles from grassroots, creating opportunities for the poor and other prioritized people in accessing to financial, credit and banking services; facilitating integration of other programs to encourage production, business, job creation, infrastructure construction, and other social and cultural programs The collaboration in credit activities has created conditions for State management authorities, the Bank and socio-political organizations to connect with, be close Lê Minh Trang CQ55/51.05 Academy Of Finance Graduation Thesis and understand the people; to capture reality to handle works and improve quality of their own activities It also creates conditions for people to supervise implementation of Government's credit policy, contributes to a stronger Vietnam Bank for Social Policies Secondly, the public and transparent implementation of direct lending, partial entrustment and disbursement at communes under the supervision of local government authorities and social communities has created people's trust at all levels on the Party, the State and the Bank Thirdly, for Vietnam Bank for Social Policies, selecting, training, and building a staff team with enthusiasm, professional expertise, sense of discipline and civilized, and polite communication style have gained trusts from customers and are decisive factors for all successes Fourthly, the Bank should constantly improve the quality of operation, as well as professional ethics, and personal responsibility of its staff; strengthen inspection and controls; maintain and perform well works of performance emulation and commendation Lê Minh Trang CQ55/51.05 Academy Of Finance Graduation Thesis CHAPTER 3: RECOMMENDATIONS PROPOSALS TO THE MANAGEMENT OF VIETNAM BANK FOR SOCIAL POLICIES, QUANG NINH BRANCH 3.2 PROPOSALS TO SAVINGS AND LENDING GROUP 3.3 PROPOSALS TO ASSOCIATIONS IN TRUSTS FROM VIETNAM BANK FOR SOCIAL POLICIES 3.1 RECOMMENDATIONS TO THE STATE THE STATE NEEDS TO HAVE A SEPARATE TREATMENT POLICY FOR VBSP STAFF SINCE THEY OFTEN HAVE TO WORK OVERTIME VBSP STAFF HAVE TO TAKE CHARGE OF COMMUNE TRANSACTIONS ON ALL WEEKENDS (SATURDAY, SUNDAY) FROM THE 6TH TO THE 21ST OF EVERY MONTH PURSUANT TO ARTICLE 110 OF THE LABOR CODE 2012 STIPULATES AS FOLLOWS: "1 WEEKLY, EMPLOYEES ARE ENTITLED TO AT LEAST 24 CONSECUTIVE HOURS OF REST IN SPECIAL CASES WHERE WEEKLY REST IS NOT POSSIBLE DUE TO THE WORK CYCLE, THE EMPLOYER MUST ENSURE THAT THE EMPLOYEE HAS AN AVERAGE LEAVE OF AT LEAST 04 DAYS PER MONTH THE EMPLOYER HAS THE RIGHT TO DECIDE TO ARRANGE THE WEEKLY REST ON SUNDAY OR ANOTHER FIXED DAY OF THE WEEK, BUT IT MUST BE RECORDED IN THE LABOR REGULATIONS.” HOWEVER, DUE TO THE NATURE OF THE JOB, VBSP STAFF CANNOT HAVE COMPENSATORY LEAVE BECAUSE THIS WILL CAUSE A SHORTAGE OF HUMAN RESOURCES THEREFORE, IT IS EXPECTED Lê Minh Trang CQ55/51.05 Academy Of Finance Graduation Thesis THAT THE STATE PAY MORE ATTENTION TO THE LIVES OF VBSP STAFF BY HAVING CLEAR REGULATIONS ON BONUSES FOR OVERTIME WORK AND TRAVEL ALLOWANCES SO THAT THEY FEEL SECURE IN THEIR WORK NEXT, THE EQUIPMENT PROVIDED FOR COMMUNE TRANSACTIONS SUCH AS LAPTOPS, CASH COUNTERS, ETC., ARE QUITE OLD AND OUTDATED, AND THE TRANSACTION TIME ARE EXTENDED DUE TO THE AMOUNT OF TIME IT TAKES TO WAIT FOR THE MACHINE TO RUN OR TO FIX MACHINE ERRORS THEREFORE, UPGRADING MACHINERY AND EQUIPMENT IS ESSENTIAL TO INCREASE WORK PRODUCTIVITY AND SAVE TIME FOR THIS ALREADY HARD WORK 3.2 TOFOR THE BOARD OF DIRECTORS, BOARD OF GENERAL DIRECTORS OF VBSP BECAUSE THE DEPOSIT INTEREST RATE OF POLICY BANKS IS NOT HIGHER THAN THAT OF STATE-OWNED COMMERCIAL BANKS, MOREOVER, STATE-OWNED COMMERCIAL BANKS ALSO HAVE DIVERSE PAYMENT METHODS, WITH MANY INCENTIVES AND PROMOTIONAL GIFTS, SO THEY ARE COMPETITIVE AND ATTRACT CUSTOMERS TO DEPOSIT MONEY MEANWHILE, THE ACTUAL DEMAND FOR LOANS FROM BENEFICIARIES OF SOCIAL WELFARE EXCEEDS THE CAPITAL MOBILIZED BY POLICY BANKS THEREFORE, IN ORDER TO ATTRACT CUSTOMERS TO DEPOSIT MONEY INTO POLICY BANKS, THEY MUST HAVE SUBSTANTIAL STEPS BY IMPROVING AND UPGRADE TECHNOLOGY ALONG WITH LENDING METHODS Lê Minh Trang CQ55/51.05 Academy Of Finance Graduation Thesis WE ARE LIVING IN THE 4.0 ERA, IT IS NECESSARY TO APPLY MODERN TECHNOLOGY, UPGRADE AND CREATE FLEXIBILITY IN THE PAYMENT SYSTEM FOR POLICY BANKS IN ORDER TO FACILITATE DEPOSITING AND WITHDRAWING MONEY, WHICH ATTRACTS CUSTOMERS TO DEPOSIT MONEY IN POLICY BANKS, THEREBY HELPING TO INCREASE CAPITAL TO SERVE NHCS'S TOP GOAL OF "NOT BEING LEFT BEHIND." AND MOVE TOWARDS SUSTAINABLE POVERTY ALLEVIATION VBSP BRANCHES NATIONWIDE NEED TO PROMOTE THE APPLICATION OF TECHNOLOGY, IMPROVE OPERATIONAL QUALITY, ENHANCE PRODUCTIVITY, AND REDUCE FEES IT IS NECESSARY TO CLOSELY COORDINATE WITH PROFESSIONAL AGENCIES TO ADVISE AND PROVIDE TECHNICAL ASSISTANCE TO BORROWERS IN ORDER TO IMPROVE CAPITAL PRESERVATION "THEY ARE ALREADY POOR AND SUFFERING AND ALSO, DO NOT HAVE BUSINESS KNOWLEDGE, SO WE WILL JUST PROCEED CREDIT AND CREATE GUIDANCE ON BUSINESS AND PRODUCTION ACTIVITIES WE CANNOT STORE THE LOAN SITUATION IN A BAMBOO TUBE, LEAVE IT IN THE KITCHEN ATTIC AND THEN RETURN IT TO THE BANK FOR SOCIAL POLICIES" SAID PRIME MINISTER NGUYEN XUAN PHUC ON THE FIRST WORKING DAY WITH VBSP STAFF AND EMPLOYEES AFTER THE LUNAR NEW YEAR HOLIDAY (“BANK FOR SOCIAL POLICIES” IS AN IMPORTANT CHANNEL FOR THE IMPLEMENTATION OF SOCIAL SECURITY", COMMUNIST PARTY ONLINE NEWSPAPER, FEBRUARY 11, 2019) PROPOSED THAT THE BANK FOR SOCIAL POLICIES SHOULD CONTINUE TO WELL MANAGE THE SOCIAL POLICY CREDIT Lê Minh Trang CQ55/51.05 Academy Of Finance Graduation Thesis CAPITAL; ENSURE PROMPT AND FAVORABLE LENDING TO THE RIGHT PERSONS AND FOR THE RIGHT PURPOSES, AND IMPLEMENT STEPS IN A PUBLIC AND TRANSPARENT MANNER THE PROCEDURES MUST BE SIMPLER AND MORE CONVENIENT, AVOIDING LOSSES 3.3 TOFOR THE BOARD OF DIRECTORS OF VBSP IN QN PROVINCE BOARD OF DIRECTORS OF VBSP IN QUANG NINH PROVINCE CONSTANTLY SHOULD TRAIN, BUILD AND DEVELOP A TEAM OF GOOD PROFESSIONALS WHO ARE ATTENTIVE TO THE LIVES OF PEOPLE IN DIFFICULT CIRCUMSTANCES IN ADDITION, BOARD OF DIRECTORS OF VBSP SHOULD RECRUIT MORE EMPLOYEES WITH KNOWLEDGE OF ETHNIC LANGUAGES AND SEND YOUNG STAFF FOR EXTRA TRAINING SO THAT THEY CAN LISTEN AND UNDERSTAND THE EXPECTATIONS OF ETHNIC PEOPLE IN THEIR BUSINESS TRIP TO REMOTE AREAS PHỤ LỤC+ TÀI LIỆU THAM KHẢO ĐÂU? CHAPTER 3: RECOMMENDATIONS 3.1 Recommendations to the State The State always needs to grant policies to facilitate the development of the agricultural sector, thus creating a basis for sustainable credit capital such as: assigning the Ministry of Agriculture and Rural Affairs to act as the focal point to coordinate relevant ministries and branches to strengthen the extension of agriculture, forestry and fishery; promoting the consumption and processing of agricultural products; marketing, providing production guidelines, export protection, etc Investment in infrastructure in rural areas needs to be focused to create development opportunities for development for rural people Lê Minh Trang CQ55/51.05 Academy Of Finance Graduation Thesis The State also needs to have policies to promote the development of the rural financial market, to encourage support and create a legal basis for financial companies to develop services to all people, especially insurance credit in the face of potential risks 3.2 Recommendations to People's Committees at all levels People's Committees at all levels need to coordinate with each other to solve difficulties and problems of banks, unions, savings and credit groups when implementing preferential credit policies of the Government in the locality, especially bad debt recovery and debt settlement because this is a preferential policy of the Party and State for beneficiaries People's Committees at all levels also help borrowers use capital effectively; the reality in many localities shows that many borrowers (especially poor households, extraordinary difficult households, etc.) not know how to business (their technical knowledge and management skills are very limited) leading to the inefficient use of capital, with no interest produced, so they cannot accumulate money to pay the principal Therefore, it is necessary to have a good coordination between local authorities, entrusted organizations and associations along with agriculture, forestry and fishery extension centers for regular training on lending to households The training content does not only focus on production techniques but also on skills in management and use of bank loans 3.3 Recommendations to the Board of Directors of VBSP The Board of Directors is suggested to recommend to the Government and ministries and sectors to allocate enough capital from the beginning of the year, in accordance with the annual growth plan, so that the locality can take the initiative in disbursement and debt collection programs, avoiding the situation where the people need capital but have no money to disburse, because the use of capital by customers often depends on seasonal capital needs The line between poor households and households escaping from poverty is very thin, and households that borrow loans for the poor need continued support from the State in terms of credit when they Lê Minh Trang CQ55/51.05 Academy Of Finance Graduation Thesis have just crossed the poverty line The Board of Directors needs to suggest to the Board of Directors to propose to the State to continue to allow these households to enjoy preferential credit policies like those for poor households for a period of 3-5 years, so that they have the opportunities an conditions for sustainable poverty escape Only then will the State's preferential credit capital really bring high efficiency Finally, it is necessary to improve and develop a variety of payment methods to attract customers to deposit money at VPSB 3.4 Recommendations to the Savings & Loans group In addition to regular training and additional training on delegation, the Management Board needs to be equipped with more management knowledge and working skills: keeping records, conducting meetings, communicating with banks, etc The quality of loan review also needs to be improved: Accurate loan review not only ensures the correct implementation of the Government's preferential credit policy objectives, but also preserves capital sources and avoids the wrong capital use Therefore, improving the quality of loan review is an issue that the Management Board of the Savings and Credit Group and the entrusted associations and mass organizations need to pay great attention to 3.5 Recommendations to the entrusted associations and mass organizations Entrusted associations and mass organizations need to closely supervise the savings and credit groups managed by their association to ensure that the urging for repayment of principal and collection of loan interest and savings is done effectively Entrusted associations and mass organizations also need to organize competitions for professional talents; and classification of associations and mass organizations is also essential to improve the competency of the members as well as encourage their working enthusiasm 3.6 Recommendations to VBSP Quang Ninh Branch Lê Minh Trang CQ55/51.05 Academy Of Finance Graduation Thesis First, training sessions should be focused to improve the quality, professional capacity, work ethics of bank staff in general and credit officers in particular Credit officers, besides arranging training courses, organized by the Training Center, for employees to improve their working skills and foster professional knowledge organized by the Training Center, branches need to actively organize specialized training courses every time new guidelines, policies and professional documents are issued After each training session, it is necessary to test the trainees' knowledge, which also provides an assessment of the training quality The test results are one of the criteria for evaluation, emulation and commendation, motivating staff to try to study, improve their skills, and meet the requirements of assigned tasks Second, it is necessary to arrange and assign qualified staff Staff, especially credit officers, should be assigned according to their capacity, qualifications and and strengths on the basis of State regulations taking into account the characteristics of VBSP, ensuring adaptability with the conditions and operation environment mainly in remote and extremely difficult areas Individuals from ethnic minorities should be prioritized in the recruiting process; and a preferential regime should be provided to attract officers to work in difficult and poor districts Third, it is necessary to better concentrate on communicating credit policies VBSP Quang Ninh Branch needs to work closely with village governments, organizations receiving commission, the chief of the savings and loan group communicates to make people understand their rights and obligations before, during and after borrowing the loan, so as to avoid dependency mentality and require them to be responsible for the loan being put to proper use, practice saving and perform their obligation of prompt loan repayments, regular interest payments Communication should be carried out as follows: The organization chiefs talk in savings and loan group meeting, the village chiefs in village meetings, and leaders of sub-quarters in sub-quarter meetings It must be made known to the beneficiaries that VBSP’s funds are loans, which are used with time constraints and must be Lê Minh Trang CQ55/51.05 Academy Of Finance Graduation Thesis repaid within due date Before making a loan from VBSP, they should consider and design a feasible plan for putting the loan to use, and must have management skills Lê Minh Trang CQ55/51.05 Academy Of Finance Graduation Thesis CONCLUSION The establishment of VBSP has brought the State’s preferential loans to poor households and beneficiaries of social welfare; especially to the people in remote, underdeveloped areas to assist them in escaping poverty, narrowing the gaps in quality of life, social welfare and inter-regional differences; providing marginalized groups with access to financing for their business, gradually eliminating dependence on the application/approval instrument, outdated business practice and minimizing “black credit” The separation of non-commercial preferential financing from the usual commercial banking system is also innovative and in agreement with international standards With proper policies and a separate Bank dedicated to preferential financing, the State’s funds should reach the poor safely, conveniently and be used effectively, similar to the donation of “fishing rod” instead of “fishes” Effectiveness, however, is a problem to be solved This task is not exclusive to the State, to VBSP and the poor, but requires collaborated attempt from the State, ministries, political-social organizations, benefactors, and all people The poor’s effort is an important factor in alleviating poverty The suggestions put forth in this essay are a small contribution to an array of solutions in increasing effectiveness of financing to the poor Nevertheless, they may succeed with the efforts of VBSP and synchronous coordination among government levels, sectors and organizations involved in the process By reason of the author’s knowledge and time constraints, weaknesses and limitations are inevitable To further complete this research topic, the author appreciates constructive feedback from VBSP directors, professors and those interested in the matter The author would like to thank the professors, directors and staff of VBSP Quang Ninh branch for their kind support in helping the author complete this essay Lê Minh Trang CQ55/51.05 Academy Of Finance Graduation Thesis REFERENCES The CPV: Document of the 5th Central Executive Committee Meeting (Session VII), National Curriculum Publishing House, Hanoi., 1993 Peter S Rose and Sylvia C Hudgins (2004), Bank Management and Financial Services, McGraw – Hill Education; 6th edition Dr To Ngoc Hung (2019), Bank Credit Curriculum, chapters 1, 10 Stuart Mathison (2005), Electronic Banking with the poor – Increasing the Outreach and Sustainability of Microfinance through ICT Innovation https://www.shareweb.ch/site/EI/Documents/Events/SC-Forum/SC Forum %202005-12%20Electronic%20Banking/SC-Forum%20200512%20Electronic%20Banking%20%20s+k%202%20december %202005%20fdc%20.pdf [Accessed 1-3-2021] Dr Pham Thai Ha (2017), Microfinance activity: World’s exprience and lesson for Vietnam, International Economy – Finance, p54 Crosby, P.B (1980), Quality is free, ISBN 0070145121, New American Library, New York Deming, W E (1981), Improvement of quality and productivity through action by management, Global Business and Organizational Excellence, 1(1), p12-22 M.A Dang Huong Giang, Lesson Overview of bank credit, Bank Credit http://eldata11.topica.edu.vn/HocLieu/TC318/PDF %20slide/TC318_Bai1_v1.0014111206.pdf TC318_Bai1_v1.0014111206 [Accessed 1-3-2021] Balance report credit funds of VBSP Quang Ninh Province from 20182020 10 Balance report from the VBSP branch on Quang Ninh Province for the year 2018-2020 11 The summary report of 2020 activities of VPSB Quang Ninh Lê Minh Trang CQ55/51.05 Academy Of Finance Graduation Thesis 12 The report on activities of the Board of Directors of Quang Ninh province in 2020 13 Anh Minh (21/12./2020), Vietnam Bank for Social Policies Awarded Labor Hero, Economy, Baochinhphu.vn http://baochinhphu.vn/Doanh-nghiep/Ngan-hang-CSXH-nhan-danh-hieuAnh-hung-lao-dong/417580.vgp 14 Anh Huy (21/12/2020), Policy credit contributes significantly to the fight against "shark loans", Economy, Laodong.vn https://laodong.vn/kinh-te/tin-dung-chinh-sach-gop-phan-quan-trong-day-luitin-dung-den-864220.ldo Lê Minh Trang CQ55/51.05 SUPERVISOR’S J UDGEMENT  Supervisor: M.A Phạm Thị Lan Phương Student: Lê Minh Trang Group: 51.01 Intake: CQ55 Topic: “ SOLUTION TO IMPROVE THE EFFICIENCY OF CREDIT ACTIVITIES FOR POOR HOUSEHOLDS AND POLICY OBJECTS AT THE QUANG NINH BANK FOR SOCIAL POLICIES”  Mark:  - In number:   - In word:   Supervisor Phạm Thị Lan Phương  ... I choose the topic: "SOLUTIONS TO IMPROVE THE EFFICIENCY OF CREDIT ACTIVITIES FOR POOR HOUSEHOLDS AND POLICY OBJECTS AT THE QUANG NINH BANK FOR SOCIAL POLICIES. " AIM OF STUDY The aim of this study... improve the efficiency of credit activities for poor house holds and policy objects at the Quang Ninh Bank for social policies. ” I declare that the thesis and the study presented in it are my own and. .. is to point out the difficulties and limitations of credit At the same time, the researcher propose solutions to further improvement of credit efficiency for poor households and beneficiaries of