A reliable source of preferential credit supporting improvements in people’s quality of life

In recent years, the Rural Safe Water and Sanitation Credit Program implemented by VBSP has become a practical pillar, contributing to improving the quality of life for people in Phu Tho Province. Leveraging preferential credit, hundreds of thousands of clean water facilities and hygienic latrines have been constructed, gradually transforming the rural landscape and enhancing public health.

Leveraging preferential credit, residents of An Binh Commune have invested in safe water and sanitation facilities, contributing to improve quality of life

A Bright Spot from Cao Duong Commune

The Rural Safe Water and Sanitation Credit Program in Phu Tho has not only been widely implemented but has also created a strong impact in many specific localities. Among them, Cao Duong Commune stands out as a typical bright spot where preferential credit has been effectively deployed to meet the practical needs of local residents, with total outstanding loans of over VND 96 billion (approximately USD 3.84 million), the highest in the province.

After more than 20 years of implementation, a total of 3,184 households in the commune have accessed preferential loans to construct and upgrade clean water and sanitation facilities. In practice, the number of borrowing households accounts for a high proportion of total households, while outstanding loans remain the highest among the 14 preferential credit programs being implemented in the commune, making it one of the most practical credit channels at the grassroots level.

The loans are primarily used by residents for drilling wells, installing water filtration systems, constructing storage tanks, and building standard hygienic latrines. As a result, living conditions of many households have significantly improved, particularly in areas that previously relied on unsafe natural water sources. The household of Mr. Nguyen Van Tuyen in Ve An Hamlet is a typical example. He shared: “In the past, my family had to use shallow well water, which was often contaminated, especially during the dry season, directly affecting our daily life and health. After accessing the program loan, we invested in a clean water system, and now the water supply is more stable and hygienic”.

According to local authorities, the high level of outstanding loans not only reflects strong demand but also demonstrates effective use of funds. Borrowers utilize loans for the right purposes and repay on time, creating a sustainable credit cycle. More importantly, awareness of safe water and rural sanitation has improved significantly - from passive usage of available resources to proactive investment in long-term health. Access to preferential credit has helped change living practices and enhance awareness of environmental protection and public health.

Sustainable Socio-economic Impact

According to the report of VBSP Phu Tho Provincial Branch, total outstanding loans under the Rural Safe Water and Sanitation Program have reached over VND 5,280 billion (approximately USD 211 million), with 161,278 active borrowers. Communes with the highest outstanding loans include Cao Duong (VND 96,243 million), Tu Vu (VND 91,373 million), and Tam Duong Bac (VND 91,079 million).

In reality, in communes with high outstanding loans, when funding is channeled to the right locations and aligned with actual needs, not only are clean water facilities established, but awareness of environmental protection and civilized rural lifestyles is also strengthened. This serves as an important foundation for localities to gradually meet environmental criteria under the National Target Program on New Rural Development, moving toward sustainable development.

From this funding source, the entire province has supported the construction of 322,556 safe water and sanitation facilities, contributing to increasing the proportion of rural residents using hygienic water to over 95%, while more than 90% of households now have standard sanitation facilities. Many households have shifted from using unsafe pond or shallow well water to clean water systems with proper treatment and closed sanitation facilities. This has helped reduce diseases, improve quality of life, and protect long-term health.

In mountainous, remote, and disadvantaged areas, the program’s impact is even more evident. Mr. Luong Van Nghia from Phon Hamlet, Tan Pheo Commune, shared: “Previously, my family relied on stream water, which was muddy during the rainy season and scarce during the dry season. Since accessing preferential credit to drill a well and install a filtration system, our water supply has become more stable, and our family’s health has improved”.

Beyond financial support, entrusted mass organizations have actively promoted awareness-raising and guided households on proper loan utilization, contributing to improved environmental consciousness. As a result, many households have proactively upgraded and built standard sanitation facilities, helping reduce pollution and prevent diseases.

Assessing the program, Mr. Nguyen Thanh Tinh, Deputy Director of the VBSP Phu Tho Provincial Branch, stated: “This is one of the programs with wide-reaching impact, directly improving people’s livelihoods. It not only contributes to social security but also serves as a key criterion in building new rural areas. The effectiveness is reflected not only in outstanding loan figures or number of borrowers but more importantly in improvements in quality of life and public awareness. A notable highlight is that loans are used for the intended purposes, with a very low overdue debt ratio of just 0.03% of total outstanding loans, demonstrating increasing borrower responsibility and repayment discipline. In the coming time, VBSP will continue to coordinate with local authorities and mass organizations to strengthen communication, expand beneficiary coverage, and ensure that preferential credit reaches the right beneficiaries and is used effectively. Thereby, contributing to building a green, clean, and beautiful living environment, toward sustainable development in the ancestral land”.

Dinh Thang