Update: 21:36 | 12/07/2022
(BGO) – There are more and more youth-owned agricultural production and services models and projects, actively contributing to the socio-economic development of localities in Bac Giang province. Local young people have been supported with preferential loans from the National Employment Fund to start a business.
After fulfilling military service, in 2009, Le Van Phao, born in 1989 in Ho Dau village, Cam Ly commune (Luc Nam district), got married and lived separately from his parents with over 7 ‘sao’ (1 sao = 360sq.m) of hill garden covered with eucalyptus and lychee.
With the loan from the Fund, Le Van Phao develops hybird chicken raising model and earns high income.
Determined to escape from poverty, in 2012, the Nung ethnic man boldly borrowed money from a bank, plus the help of his relatives, to start a business with the model of raising hybrid fighting-cocks. Initially, he raised nearly 300 heads to explore the market and gain experience. Fortunately, the first batches were sold smoothly with high prices (100,000-130,000 VND (4.28-5.56 USD) per kg), earning him profits. After identifying the direction, Phao planned to expand the production scale.
“In 2018, I was advised and supported by the communal Youth Union to get a preferential loan from the National Employment Fund. With a soft loan of 50 million VND (2,138 USD), I have made my dream come true,” said he.
Unlike Phao who chose the agricultural production model, from borrowing capital from the Fund, Dao Ngoc Quang, born in 1990 in Song Khe 2 village, Song Khe commune (Bac Giang city), gets rich from a transport business project. In 2018, after working as a freelance driver, with the suggestion and support of his family, Quang established the Ngoc Quang Transport Co., Ltd.
His company has created jobs for 20 workers, mainly local young people with a stable monthly income of 10-14 million VND (427-598 USD) per person. To obtain this result, in 2019, Quang borrowed 300 million VND (12,828 USD) from the Fund to buy two more trucks. Recently, in order to overcome difficulties due to the impact of the Covid-19 epidemic, he was again supported by the youth union to borrow 1 billion VND (42,760 USD) from the Fund and the source under the Government’s Resolution 11 dated January 30, 2022.
Arranging reciprocal capital to meet demand for loans
Currently, the whole province has more than 73,500 youth union members, of them about 39,000 live in rural areas. Vu Tuan Anh, head of the Youth Movement Committee of the provincial Youth Union, said that the startup movement is attracting a large number of youth union members. To meet their needs for loans, youth unions at all levels have always created favorable conditions for them to access preferential credit policies.
Dao Ngoc Quang (middle) develops a transport business model from preferential loans.
Thanks to preferential capital, the province now has nearly 600 successful business models of young people with average income of more than 200 million VND (8,550 USD) per year.
However, many young people dare to think but face difficulties in capital. According to the Government’s Decree 74/2019/ND-CP dated September 23, 2019 guiding lending activities from the Fund, in order to borrow a maximum amount of 100 million VND, individuals must prove the feasibility of their own business models, have a business license and farm certificate or collateral. Production and business establishments owned by young people need to prove their economic efficiency to obtain loans.
To remove these obstacles, Than Trung Kien, Secretary of the provincial Youth Union said the provincial Youth Union will further promote communications, review and select typical economic models that are eligible for disbursement; regularly inspect and evaluate the efficiency of using loans and urge interest payment on time. In particular, it will select and launch youth start-up movements; connect and support product consumption for projects receiving loans. To further improve the effectiveness of the Fund, the provincial Youth Union recommends localities to balance their budgets to meet the capital needs of young people.