Sustainable poverty reduction from policy loans

Mr. Duong Van Truyen's family, in Bang Thanh commune, received a loan to raise breeding horses.

Origin of effective economic models

By the end of 2024, the poverty rate in Thai Nguyen province (old) will decrease from 3.02% to 2.04%. In Bac Kan province (old), despite the difficult mountainous conditions, the poverty rate will still decrease from 21.95% to 19.46%. These figures not only reflect the efforts of the people and the government but also show the important impact of policy credit programs.

In 2024, the lending turnover of policy credit programs in the two provinces reached more than VND 2,433 billion, supporting 42,777 poor households and policy beneficiaries to access capital. Of which, 9,673 poor, near-poor and newly escaped poverty households borrowed capital to develop production. The capital also created jobs for more than 9,600 workers, supported the construction of 34,310 clean water and environmental sanitation works in rural areas, helping 4,930 households in difficult areas overcome difficulties.

In the first 6 months of this year, disbursement in localities achieved positive results with 1,463 billion VND, supporting 22,242 households to borrow capital. Of which, nearly 5,700 workers have stable jobs, 19,660 clean water and environmental sanitation works have been built... contributing to significantly improving the quality of life of rural people.

Mr. Hoang Van Hau, Deputy Director of Thai Nguyen Province Branch of the Bank for Social Policies, said: From propaganda, mobilization, investigation, screening of beneficiaries to the loan evaluation process, inspection, supervision, debt collection and bad debt handling are all carried out synchronously. Thanks to that, policy credit capital is disbursed promptly, to the right subjects, contributing positively to poverty reduction in particular and ensuring social security in general.

Policy credit is not just a number on paper but also creates typical economic models that are replicated locally. A typical example is the business model of a motel combined with motorboat transportation of Mr. Dong Van Quyen, Ba Be commune. With 100 million VND borrowed from the program to support production and business households in difficult areas, he has built 8 homestay-style rooms, serving an average of 200 guests per month, contributing to promoting community tourism and creating more jobs and income for his own family and many local workers.

In Bang Thanh commune, in 2023, Mr. Duong Van Truyen boldly borrowed 100 million VND to develop a horse breeding model. To date, his family has 11 horses, starting to generate income to cover their living expenses. Although the horse herd is still small, this is a promising direction thanks to a favorable market. In early 2025, his family completed repaying the loan.

Mr. Truyen shared: Thanks to the bank loan, I had money to buy breeding horses and strengthen the barn. I also planted grass for food, and each year the herd of horses gradually grew. Having a herd of horses, I felt secure because it was like a savings fund, which could be sold when the family had a big event.

Always with the people

Implementing the two-level local government model, although the district level has ended its operations, the Social Policy Bank still maintains stable operations. The goal is to be close to the people, to accompany the people at transaction points throughout the province according to the motto "understanding the people's hearts, serving wholeheartedly".

Loan disbursement at Hoang Tri Transaction Point, Dong Phuc Commune.

The Thai Nguyen Provincial Social Policy Bank Branch regularly coordinates with the commune and ward authorities and entrusted socio-political organizations, such as the Farmers' Association, Women's Union, Youth Union, and Veterans' Association, to monitor, grasp and analyze due debts, thereby promptly urging collection and appropriate handling. This contributes to expanding the capital access network, monitoring capital use and raising the borrowers' sense of responsibility.

Currently, savings and loan groups in residential areas are becoming an "extended arm", helping people access capital conveniently, use it for the right purpose and repay debts on time.

Ms. Le Thi Thuy, Vice Chairwoman of the Vietnam Fatherland Front Committee and Secretary of the Youth Union of Cuong Loi Commune, said: Currently, the outstanding debt managed by the Youth Union is more than 9 billion VND with 197 borrowing households. We regularly visit, inspect the model and promptly support households in the process of using capital, ensuring the highest efficiency.

Communes and wards have increased training, technical guidance, and product consumption connections to improve production capacity and reduce investment risks. As a result, the monthly principal debt collection rate has averaged over 98% of the total debt due.

In the journey to achieve the goal of “leaving no one behind”, policy credit capital has truly played a practical role in developing household economy, sustainable poverty reduction, job creation, ensuring social security and contributing to building a civilized and modern new countryside.

Source: https://baothainguyen.vn/kinh-te/202508/giam-ngheo-ben-vung-tu-von-vay-chinh-sach-78823fd/