STUDENT: Nguyen The Hung

CLASS:
K1C-MBA
Title

The role of social organizations in the activities of supporting loans for people in
Dinh Trung commune, Vinh Yen city- Vinh Phuc Province
1. Introduction
In the process of industrialization-urbanization in Vietnam, Vinh Yen is a young city
established lately, as well as other cities across the country needing to be recovered agricultural
land to expand city and for the construction of industrial park and urban areas. The process of
industrialization -urbanization has turned many rural areas into industrial zones and urban areas
with many villas, factories, companies, factories built on the land of people to make powerful
changes in economic and career structure. There are also many changes impacting directly on the
lives of her people, especially the households in the area land used for the construction of
industrial parks and urban areas.
On the general purpose, Dinh Trung is also one of the local areas of agricultural land used for
the construction of new urban: Ha Tien Temple and a number of small businesses in the area since
2004. The recovery of agricultural land has a major influence on people's production, so people
need loans for production and business development. The role of social organizations in support
activities helping people borrow locally is very important and necessary because it helps to
maintain a stable life in society and promote growth of local business. Through these activities
help people borrow money to organize work better in mobilizing their members, union members
involving in the organization.
2. Scientific significance and practical significance
a. Scientific significance
This study contributes to clarify a number of sociological theories such as: theory of structure
- function, rational choice theory, the theory of social action and a number of specialized theory of
economic sociology, Labor. This study applies sociological theory and sociological research
methods for the study and explains in a scientific way for the practical activities of the people in
the household family in process of industrialization - industrialization.
On the basis of the application of sociological knowledge, concepts and theories of sociology
to associate the actual conditions applies to the gap between theory and real life. The result of the
study helps understand the potential capacity of people in the process of searching for a suitable
career to set out the policies and impacts in accordance with the development of this rule.
b. Practical significance:
It helps policy makers and social organizations understand the needs and desires of the
people in support of loans for production and business, so that there are effective solutions and
improve the role of local organizations.
It helps us describe the research: "The role of the social organizations in activities of
supporting loans for people in Dinh Trung commune, Vinh Yen city, Vinh Phuc province."
Hence, the change in perception and action for addressing the policy mode for people better
and better, and also point out the factors affecting the role of the organizations in assisting people
to make the loan procedure.

The studying the activity of social organizations in supporting procedures for local people
loans is to offer a number of solutions, recommend as a preliminary consultation for the industry to
enhance the role of social organizations in advocating for helping people business loans after
handing over the land to build the urban and industrial areas in the process of industrialization
urbanization.
3. Research objectives
Through the activity of supporting loans to study the role of organization in the society of the
local as well as propose some suggestions to improve the role of organizations in the supporting
peoples loan.
4. Theoretical framework
(4)

Socio- economical
conditions
(1)

(5)

The roles of
organizations
(2)

Support of loans
(3)

(6)
(1): Descriptions of Socio- economical conditions
* Agricultural production:
The commune has a total cultivated area of 314.76 ha, directing people to acquire technical
and scientific applications in farming, animal husbandry, boldly put the plant and animal varieties
with high productivity for intensive cultivation productivity.
* Production of cottage industries and construction:
Currently the province has 19 private enterprises and foreign joint venture company with
business activities in the area, providing a significant source of income to contribute to socioeconomic development of the locality.
The contribution of construction, handicraft industries in the area is limited and has not been
focused on investment; policies are needed to encourage the handicraft sector development to
create jobs for surplus labor redundancy in the area.
Due to the large area, the pace of construction in the area is pretty fast, professional staff in
charge of only one person to take on the management of land and building. Thus the management
of construction is not close, which leads the building no allowance of people still happening.
* Development of the service sector:
Trade and services have significantly developed the past year; households have converted to
agricultural services; commodity prices have increased, which affect the consumption of income
but the income from commercial services estimated reaches 47.3.
Summary: From the characteristics of the geographic location, socio-economic conditions
along with changes in the level of awareness, the industry and local people in Dinh Trung as
mentioned above show that this is favorable condition for the people in the village having the

opportunity to adapt to the process of industrialization and urbanization Thus the role of the social
organizations in helping people is essential.
(2) Describe the role of social institutions
In recent years, with the interest of the Party - The Dinh Trung Committee, the organization
for people borrowing through the mandate of the organizations can be done very effectively.
Specifically, local social organizations are entrusted and signed with bank of social policy
loaning to members such as the Women's Union, the Farmers' Union, the Youth Union, and the
War Veterans. The social organizations took the initiative to contact the province's social policy
bank to facilitate to borrow capital. In normal, members often have programs on the funds and
organizations and meetings to allocate quotas to borrow funds for organizations deploying to their
members, and one of organizing loans, which are responsible for guiding the people in that
conference.
In addition to bank loans of provincial social policy through the sign of trust, the Women's
Association and the Veterans Association shall also have the funds through mobilizing its members
in organizing and cooperating individuals and units based in the contribution and support to
members who have difficulty in loans at preferential interest rates for economic development and
poverty reduction. The Women's capital is 13 million, Peasants loan is 31 million and Veterans are
90 million.
Youth Organizations having program loans from the fund to create jobs for the youth union
members with a current capital of 35 million and this increased to 83 million; loans from
development fund of the province's young talent group is 50 million.
Currently a member of the youth group capital loans are used efficiently for the right
purpose, the Youth Union members invest to open loans business workshops to create jobs for 10 15 employees in the area with average income of 2-3 million VND / person / month.
In addition to loans the organizations contributions, annual social organizations also
contributes funds for building unity by the Vietnam Fatherland Front launched every year tens of
millions of dong.
(3): Description loan support
(4): To determine the socio-economic roles
(5): To determine the role of social institutions
(6): To determine the loan support
(7): To determine the relationship between socio-economic conditions and the role of social
institutions
(8): To determine the relationship between the roles of social institutions to support loans
(9): To determine the relationship between socio-economic conditions of the loan support
5. The hypothesis of the study
- Is there a relationship between socio-economic conditions and the role of social
institutions?
Favorable socio-economic conditions have contributed to social organizations to work more
effectively with their roles.
- Is there a relationship between the roles of social institutions and support loans?
The role of social organizations has popularized and helped people make the loan procedure
very fast. So people want to bank loans through social organizations.

- Is there a relationship between socio-economic conditions and support loan?

Socio-economic development of local people making loans is favorable. Party and local
governments are interested in helping more people to borrow more funds.
6. Overview of the study
Dinh Trung commune located in the northern Vinh Yen city, Vinh Phuc Province, was
founded before 1945; the commune has a total area of 748.45 ha. There is a Highway 2B to Tam
Dao Mountain and Hanoi - Lao Cai railway running through province.
+ The east is contiguous to Lien Bao wards- VinhYen city
+ The South is contiguous to Tich Son Ward -Vinh Yen City.
+ The North is contiguous to Thanh Van and Kim Long Tam commune- Tam Duong didtrict.
+ The west is contiguous to Dong Tam and Hoi Hop Ward - Vinh Yen city.
The total number of households is 1920 households with 6800: 5544 permanent address,
1256 temporary residence; it is divided into 14 neighborhoods. The Dinh Trung People mainly
produces agricultural production, only a small part of the production and business along by
Highway 2B to Tam Dao.
7. Research Methodology
- The selection of sample
The study was conducted by intentional sampling in Dinh Trung study area, and then
randomly selected 484 people in 484 households for interviews with:
- The structure
- Rate:
Female:
125 people
=
41,3%
Male:
177 people
=
58,6%
- Age:
Under 35
20,1%
From 35 to 45:
25,5%
From 46 to 55
37,2%
Above 55
17,2%
- Occupation structure:
Agriculture
45,7%
Small industry:
1,1%
Small businesses:
15,0%
Officers
7,6%
Workers
7,4%
Free laborers
14,5%
Businessmen
0,2%
Students
0,1%
Others
8,4%
Academic qualifications of respondents
The unlettered
0%
Elementary
3,5%
Secondary
58.6%
High school
30,3%
Professional school
5,5%
College and university
1,6%
Post- graduate
0,5%
- Interview by questionnaires method:

We interviewed 302 people representing 302 households living and working in Dinh Trung
-Vinh Yen city, Vinh Phuc province to collect information related to the research topic.
- The method of personal interviews:
We selected five households having bank loans to business investment in the area Dinh Trung
-Vinh Yen city, Vinh Phuc province.
- Method of observation:
We make observations of the every day work of people there, observing the jobs, houses,
vehicles, living facilities in which they are living.
- The method of document analysis:
In this report, the authors have read and analyze the documents related to the topic of the role
of social organizations in supporting people in Dinh Trung and loan documents in the reports of
departments in Dinh Trung and related materials.
8. References
1.Tran Tuan Anh, a number of solutions to create jobs in the transition to a market economy
at present, University of Social Sciences and Humanities, 1998.
2. Political report for the performance of goals of socio-economic development, national
security and defense 2009, direction of the Dinh Trung Party Committee
3. Reports of mass departments Dinh Trung, 2009 - 4/2010.
9. Questionnaires
1. Do people here loan for business?
2. Which difficulties do people here have?
3. How the role of organizations in social support activities people to borrow is? How support
procedure is?