Improving the efficiency of banking capital social policy regarding difficulties through strengthening training for market economy and revolution 4.0

Nội dung text: Improving the efficiency of banking capital social policy regarding difficulties through strengthening training for market economy and revolution 4.0

1. IMPROVING THE EFFICIENCY OF BANKING CAPITAL SOCIAL POLICY REGARDING DIFFICULTIES THROUGH STRENGTHENING TRAINING FOR MARKET ECONOMY AND REVOLUTION 4.0 Dr. Bui Hong Diep Finance and Accounting Department University of Food Industry Ho Chi Minh City Mobile: 090 3738777; E-mail: Buihongdiep72@gmail.com Abstract Vietnam Bank for Social Policies (VBSP) mobilizes capital and lends capital to poor households and policy households through officials of 4 organizations: Farmer's Association, Women's Union, Former Association warriors and Youth Union in villages and rural areas throughout the country. Therefore, in order to improve the efficiency of loan capital of the Vietnam Bank for Social Policies, it is necessary to strengthen training on market economy knowledge and revolution 4.0 for this staff. Through secondary data sources and reports of Vietnam Bank for Social Policies, the article focuses on analyzing and evaluating that situation and proposing proposals according to the set objectives. Keywords: knowledge training, market economy, cadres of ethnic minorities, minorities and disadvantaged areas 1. Introduction Undoubtedly, the current technological revolution, especially the revolution of technology 4.0, the strong ongoing trend of Fintech brings many opportunities and challenges in business activities. In general, in the development of services of banks around the globe as well as in Vietnam, of the Bank for Social Policies in disadvantaged provinces, such as: Northwest, Central Highlands, Dong Me Khmer, collected attracting and meeting the needs of customers' increasing products and services, especially payment services, in order to maximize the bank's profits, promote regional socio-economic development. hard. However, it is also posing great challenges by Fintech companies in competition to attract customers, expanding market share, especially in online loan transactions, financial management, and portfolio management, taking place in the country and in difficult regions in the context of the 4.0 revolution that is taking place today. Theory and practice in the world as well as in Vietnam have shown that ethnic minorities and people living in disadvantaged areas are those with the highest demand 908
2. for social policy loans. The highest rate of social policy credit debt balance compared to commercial bank credit. To improve living conditions, improve incomes for ethnic minorities and people in disadvantaged areas, implement socio-economic development goals, contribute to solving security issues. To protect and protect the environment, it is necessary to continue to expand and raise the efficiency of social policy credit capital in the same difficulties, mountainous, deep-lying, commune, border and island regions. In practice, economies with many similarities like Vietnam today, provided that the investment capital of the budget is very difficult, ODA capital for developing and developing countries is increasing. narrow and tight, capital of non-governmental microfinance institutions is very small, investment capital of enterprises as well as foreign investment capital comes to ethnic minorities and disadvantaged areas If not, then the credit capital of Vietnam Bank for Social Policies (VBSP) is of prime importance. However, in order to continue expanding the ability to absorb capital, expand lending, and effectively use the Bank of Social Policy's capital for people in disadvantaged areas, especially ethnic minorities, it is necessary to dig create market economy knowledge for them: how to choose and access financial services of VBSP? where? What are the specific benefits? What production or service, where to sell or sell, to whom or who uses it? How to use capital, at what cost, how long is the capital rotation? How to accumulate small amounts of money? where to send How to use transactions on mobile devices dealing with banks? How to use the Internet? These are the very practical contents of knowledge that are necessary for people in disadvantaged areas, especially ethnic minority cadres to be equipped. Access to financial services of VBSP needs to be understood as to know, familiarize, effectively use, and regularly use modern financial services in the current 4.0 revolution of officials and ethnic minorities. number, of people in difficult areas in life, in economic activities effectively. In Vietnam, ethnic minorities often live in difficult socio-economic regions, such as the northern mountainous region. The Central Highlands, many central provinces, remote and remote areas of the Mekong Delta, are often particularly difficult areas. Vietnam Bank for Social Policies is a type of business in a market economy that is also grasping the trend of the era, grasping achievements, advances of the industrial revolution 4.0 to improve efficiency. his activities. VBSP is a financial institution of the Government, non-profit activities, providing state credit for socio- economic development, solving social security and poverty reduction. The contingent of political-social-professional organizations in the whole country in general and disadvantaged areas in particular, are officials of savings groups, which should be 909
3. considered as human resources to act as agents for VBSP in credit activities, should improve the quality of this human resource. 2. Research Methods Research articles on practice, using qualitative research methods. The author is based on practical observations, exchange of experiences and direct interviews with officials of the Bank for Social Policy at localities, the Head of the Savings and Loan Group (TTK & VV), some experts. The author is also based on secondary data, based on the report of the Vietnam Bank for Social Policies. On that basis, the author synthesizes, analyzes, compares, evaluates and draws out comments. 3. Results 3.1. The objective need to equip with knowledge of market economy, revolution 4.0 for people in disadvantaged areas, ethnic minority officials derive from practical requirements One is the viewpoint of "giving more fishing rods to fishing" in the implementation of state credit policy and microfinance. In terms of awareness and viewpoint, it is necessary to promote access to financial services of VBSP, on that basis, contribute to improving goods production capacity, production and business capacity, capital utilization capacity of people. Ethnic minorities, remote areas, communes and regions are particularly difficult, so the issue of cadres must be top priority. The question now as well as in the years to come is to pay special attention to solutions to expand and improve the efficiency of VBSP's financial services for the above- mentioned subjects. In order to expand credit capital, it is associated with ensuring the absorption of capital, ensuring the effective use of capital, ensuring people get used to sending and withdrawing money at VBSP, depositing savings. idle money, small amounts of money into savings and loan groups (TTK & VV). Accordingly, it is necessary to continue to improve market economy knowledge, the meaning of depositing small amounts of money, retailing, saving money, depositing idle money into TTK&VV entrusted by VBSP; understand the regulations on borrowing and using capital for people in general, especially ethnic minority cadres and cadres in extremely difficult areas, raise the people's intellectual standards, promote activities agricultural promotion, transport development, development of crops and livestock with high productivity and quality assurance; innovate farming techniques, reduce production costs. In order for ethnic minorities, as well as ethnic minority officials and regions with special difficulties to improve their capacity to produce goods themselves, rather than just relying on state subsidies. 910
4. Secondly, improving professional qualifications and challenging information on the Internet for staff is the school of savings groups borrowing capital from the Social Policy Bank, local officials. To transfer credit of VBSP to people to the northern mountainous areas and provinces in the Central, Central Highlands, remote and remote areas in the Southwest region, the Khmer region, implemented through savings groups borrowing from socio-political organizations: Women's Union, Farmers 'Association, Veterans' Association; Youth Union, in villages and Representatives of VBSP's Boards in localities, through clues of microfinance institutions. Currently there are tens of thousands of savings groups borrowing from the 4 organizations mentioned above, with most of the staff being ethnic minorities, the Khmer, In order to lend to VBSP, saving groups. loan to confirm the list of member households, reference to monitor the use of loans, Therefore, the leaders of the team must be equipped with general market knowledge and knowledge of bank credit. private. SBV (2018) Because the general practice in the period from 2009 to the end of December 2018, Social Policy Bank (VBSP) attracted nearly 7 million poor households and other frequently used policy beneficiaries. Financial services provided by this financial institution. By the end of 2018, the total policy credit capital reached 194,420 billion VND, an increase of 19,038 billion VND compared to 2017. Total outstanding loans of credit programs reached 187,792 billion VND, an increase of 16,003 billion VND (+ 9.3%) compared with 2017, with nearly 6.7 million poor households and policy beneficiaries are getting loans; in which, the credit debt outstanding under the Prime Minister's plan reached 165,141 billion VND, an increase of 12,938 billion VND, completing 100% of the plan. Particularly in 2018, the total lending volume of VBSP reached 62,078 billion VND with more than 2.1 million turns of poor households, near poor households and other policy beneficiaries getting loans. Social policy credit activities have contributed to more than 300 thousand households overcome poverty threshold; supporting capital for production and business, creating jobs for more than 245 thousand employees; help more than 6 thousand workers to work abroad for a definite time; help more than 51 thousand students with difficult circumstances to borrow money to study; build over 1.3 million clean water supply and sanitation facilities in rural areas; building nearly 30 thousand houses for poor households to stabilize their lives, more than 2.8 thousand houses of social housing according to Decree 100/2015 / ND-CP. Attached to the growth of outstanding loans, credit quality is increasingly raised. As of December 31, 2018, the ratio of overdue debt and frozen debt accounted for 0.78% of total outstanding loans, of which overdue debt was VND 736 billion, accounting for 0.39% of total outstanding loans. VBSP (2018) 911
5. Scale of loan outstanding Poor households in the Khmer, remote and deep-lying areas of VBSP also have a growth rate of over 11% / year, tens of thousands of households escape poverty, including the role of officials ethnic minorities. Ethnic Committee (2018) In the process of bringing capital to the poor and social policy beneficiaries, to ensure the safety and efficiency of loan capital, VBSP has regularly cooperated closely with Party committees, local authorities and key organizations. trustee society - focussed to strengthen and improve the quality of policy credit in the area. In the contingent of executive committees, authorities and socio-political organizations at grassroots level, the majority of officials are ethnic minorities, Khmer people, SBV (2018) VBSP has a wide network to reach district level, but people borrow money without having to come to the Bank's office to get a loan, but VBSP provides capital to the commune People's Committee headquarters to disburse, collect debt, collect interest. , witnessed and supervised by local authorities, socio-political organizations receiving fiduciary, Head of Savings and Borrowing Group. In addition, the VBSP also cooperates closely with these agencies and organizations in supervising and managing loans, guiding borrowers to use loans effectively Most of them are people. ethnic minorities, Khmer people, Ethnic Committee (2018) Thirdly, in order to effectively transfer capital and use capital sources, it is necessary to well implement agricultural and forestry extension, study market information and scientific and technological advances in the Internet. Officials working in agricultural and forestry extension activities in the Northern mountainous areas, Central Highlands, Khmer villages, etc. are mostly ethnic minorities. With the training to improve the level of agricultural and forestry extension, learn about experiences in high-tech agriculture, clean agriculture, apply scientific and technological advances to the production, processing and preservation of agricultural products, create conditions for the use of donated capital sources and effective credit capital sources of farmers and local people. Ethnic Committee (2018) 3.2. Proposing the content of training and retraining knowledge of the Industrial Revolution 4.0 in order to improve the accessibility of VBSP's services to people in disadvantaged areas, ethnic minority officials to improve the efficiency of using credit capital, contribute to sustainable development in the Northwest, Central Highlands, Khmer villages, Firstly, training market knowledge in general and the ability to grasp the trend of industrial revolution 4.0 People in disadvantaged areas, ethnic minorities in the Northwest, Central Highlands, and Khmer people need to vigorously transform market economic 912
6. thinking, industrial revolution trend 4.0. Does that mean what to produce, where to sell, to whom, to sell at what price, how much it costs, how it costs, how to access market information, how to apply scientific progress What is the technology? It means that production, livestock or what needs to be based on market demand, consumption capacity, and profit accounting. It also means that it is impossible to produce, move according to the resolution, to make massively without taking into account the ability to consume, the trend of using safe food, clean agricultural products, and applying use high technology. That means getting used to the sense of saving, sending small coins to formal financial institutions, getting used to borrowing and repaying, and costing. It must also adhere to and respect the principle of appraising plans of the Bank for lending, including Social Policy Bank, banking transactions and seeking information on mobile devices, on the Internet. Secondly, training knowledge on agricultural, fishery and forestry extension This content should also be linked to the first content mentioned above, but it will go into intensive cultivation and application of advanced scientific and technical advances in production, animal husbandry, aquaculture as services, new varieties, new techniques, new cultivation tools, etc. are required to meet the requirements of the new situation, the trend of industrial revolution 4.0. Thirdly, firmly grasp the regulations on formal financial service activities, especially banking credit activities, microfinance activities. This content includes the methods of depositing money, the sense of saving small amounts of money deposited in authorized C&S of VBSP; bank loan application procedures; observance of credit principles: what to do, specific objectives; using capital for the right purpose and using capital effectively; There is a specific plan to use capital to ensure repayment of the loan in time both principal and interest as committed. Demanding people in disadvantaged areas, especially ethnic minority officials, have a basic knowledge of financial plans to recognize and guide people: how much capital, how much capital they have, calculating the possibility of profit loss including interest expense, Fourth, equip the necessary legal knowledge This content includes basic knowledge of market economy laws, such as land, housing, property, property ownership and use, distribution and mortgage, transfer, This knowledge also avoids people, officials being deceived, causing property disputes in the process of production, animal husbandry, service Fifth, training knowledge about sustainable development 913
7. In addition to the 4 contents of the above-mentioned training for sustainable development, improving access to financial services of the Social Policy Bank, people in difficult areas, especially ethnic minority and deep-lying cadres and remote areas should be equipped with knowledge about forest protection, environmental protection, regulations and practices on prohibiting the use of chemicals and banned substances in livestock, cultivation, fisheries, processing and in doing services as well as doing business honestly, avoiding law violations. 4. Discussion and Conclusion The Government should continue to invest in projects on transport infrastructure, health, schools, clean water and environmental sanitation, information technology infrastructure, internet, in regional areas. Northern mountains, Central Highlands, Khom Me ethnic minority people, etc., through specific programs and projects on capital sources of the State budget, capital of microfinance institutions, international aid capital; capital of commercial banks; coordinating with the capital sources of the Ministry of Agriculture and Rural Development, the Committee for Ethnic Minorities, the Ministry of Health, the Ministry of Education and Training, Enterprises continue to have direct assistance on welfare. society for people in disadvantaged regions. Vietnam Bank for Social Policies needs to regularly organize training courses for savings group leaders; There should be programs to introduce credit activities, credit policies, use of mobile devices, exploit information on the Internet at the People's Committees of communes. The above training and retraining contents should be compiled in detail, specific and updated to be included in training programs for commune officials and officials of mass organizations; local seminars and seminars. For localities in the Northern mountainous region, Central Highlands and Khmer villages, in practice, coordination among agricultural and forestry extension, technical assistance and technology transfer activities , information on consumption market of output products of State organizations, non-business units, enterprises and socio-political organizations with VBSP's policy credit activities in almost all localities in the northern mountainous region, the Central Highlands, the Khmer people and not yet properly concerned, has affected people's sense of saving and sending small amounts of money regularly, to effectively use borrowers' loans. Therefore, agricultural extension, technical assistance, new seed supply, improvement of farming and animal husbandry techniques, should have specific contents on the basis of lessons learned in the past time and funding. used for ineffective training, poor and sketchy training content, 914
8. In the market economy in general and in industrial countries in particular, the Government still uses state credit tools in combination with the effective use of credit policies of commercial banks and VBSP's banks to implement the objectives and strategies for their socio-economic development. In Vietnam, right from the beginning of the renovation, the Party and the Government have established the Bank for the Poor, now the Social Policy Bank. Vietnam Social Policy Bank; some microfinance institutions are also licensed to operate; In addition, commercial banks are competing to expand credit in the Northern mountainous region, the Central Highlands, the Khmer people, So far, it has been confirmed that a large number of people, including ethnic minorities, have access to formal financial services; the successes and correct guidelines of the Party and Government in this field, especially the role of poverty reduction, sustainable development in the country in general, the Northwestern region, the Central Highlands, the Khmer people, in particular. However, it is necessary to continue to strengthen, develop and improve the operational efficiency of financial services of Vietnam Bank for Social Policies in the above-mentioned areas. Reference sources: 1. VBSP (2018): “Report on the Social Policy Bank of the provinces in the Northwest, the Central Highlands, the Khmer people in 2018”, Hard copies, internal documents, Hanoi, 1/2019 2. SBV (2018): “Credit policy activity report for 2018”, Hard copies, internal documents, Hanoi, 12/2018 3. Ethnic Committee (2018): "The report assesses the effectiveness of policies for difficult areas in 2018”, Hard copies, internal documents, Hanoi, 1/2019 915