Effective capital channel

In Luc Ngan district, many preferential credit programmes for ethnic minorities are being implemented, focusing mainly on poverty reduction and production development such as policies for students in difficult circumstances, job creation, labour export, clean water and rural environmental sanitation.

In order to improve the efficiency of loans, the Vietnam Bank of Social Policies (VBSP)’s transaction office in Luc Ngan district has coordinated with four organizations and unions including the Farmers' Association, the Women's Union, the Veterans' Association and the Youth Union to bring preferential loans to the right members.

The district has guided households to apply science and technology, and promote the effectiveness of preferential capital, ensuring that interest collection and principal repayment are carried out promptly. From this preferential credit, many ethnic minority households have had a fulcrum to escape poverty and build a new life.

In 2023, Luong Thi Hoa, a Nung ethnic born in 1990 in Cha village, Phong Van commune, received a preferential loan of 100 million VND (4,000 USD) from the VBSP to invest in agricultural and forestry production. With the above amount, she and her husband invested in raising 12 horses.

Taking advantage of the large grazing area and focusing on caring, the herd now has three more foals, helping Hoa's family earn income to improve their lives. By combining horse breeding with other agricultural and forestry economic models, by the end of 2023, Hoa's family was out of the list of poor households.

According to a representative of Phong Van commune, the implementation of credit policies for ethnic minorities is of great significance to social security, hunger eradication, poverty reduction and sustainable socio-economic development in the locality.

Opening a way out of poverty

According to VBSP Luc Ngan, as of July 31, the total outstanding debt of the whole district reached more than 1.1 trillion VND (44 million USD), an increase of more than 82 billion VND compared to 2023. Of which, more than 513 billion VND was held by over 10,200 ethnic minority households.

In fact, social policy credit is an effective tool in sustainable poverty reduction in Luc Ngan district.

Determining the significance and importance of this work, in the past time, the VBSP transaction office has coordinated well with the entrusted unions at all levels; People's Committees of communes and towns, Party committees and management boards of villages to disseminate policies and preferential loan programmes to members and people.

At the same time, it has enhanced coordination to review subjects, grasp needs for loans from villages, organize meetings to vote preferential credit beneficiaries and make a list of households in need and eligible for loans as a basis for requesting loans from the bank.

From now until the end of the year, the transaction office will continue to closely follow the socio-economic development and sustainable poverty reduction goals in the locality to focus on implementing the assigned credit plan; create favourable conditions for people to access loans to serve production and business needs and stabilize their lives.

In addition, the unit will proactively grasp, analyze and evaluate the credit quality of each locality and coordinate with the authorities and entrusted socio-political organizations to guide people to integrate economic development models based on local strengths, helping borrowers use capital effectively.

Nguyen Huong