Amplifying the impact of preferential credit in An Giang Province

Following the administrative merger, An Giang has become the largest province in the Mekong Delta in terms of both population and area. An Giang is undergoing strong transformation and becoming more prosperous and developed thanks to the attention and support from the Central Government, the proactive mobilization of local resources for development, and the close partnership of VBSP.

The transaction point network enables people to access loans conveniently and in a timely manner

Poverty Gradually Recedes

“I was fortunate to be facilitated by VBSP officers to access preferential credit from the Government in a timely and convenient manner to develop my household economy. Hard work alone would not have been enough, and we would not know when we could escape poverty”, shared Mr. Danh Sa Ray, an ethnic Khmer resident of Thoi Trung Hamlet, Dinh Hoa Commune.

Only by witnessing firsthand the livelihood model of Mr. Danh Sa Ray’s family can one truly appreciate the effectiveness of preferential credit for poor households. The loans have enabled his family to break away from long-standing poverty, develop an integrated farming model, and cultivate a thriving garden, generating an annual income of over VND 100 million (approximately USD 4,000). His household has become a role model and a source of inspiration for many other families in this agriculture-based locality.

In Tri Ton Commune (located along the southwestern border in the Bay Nui region), policy credit has also closely supported local authorities and residents in implementing sustainable poverty reduction programs, building new rural areas, and promoting high-tech agriculture. According to Mr. Tran Van Cuong, Chairman of the Commune People’s Committee, thanks to the active support of VBSP, the local poverty rate has been reduced to 3.19%, average income has reached nearly VND 70 million per person per year (approximately USD 2,800), and local budget revenue has exceeded 133.8% of the target set by the Resolution.

Cases like Mr. Danh Sa Ray and many households in Tri Ton Commune are no longer rare. Even in remote, border, and coastal areas, policy credit has truly become a reliable pillar, enabling people to confidently develop appropriate and progressive production and business models, effectively restructure agriculture, aquaculture, and rural livelihoods. Poverty is steadily receding and is no longer a persistent concern for ethnic communities in the southernmost region of the country.

A Trusted Pillar

Leveraging policy credit, residents in An Giang Province have developed effective livelihood models that generate high returns

Mr. Doan Cong Thiet, Director of the VBSP An Giang Provincial Branch, shared: Over time, hamlets, communes, and wards have undergone significant transformation, with people’s livelihoods gradually improving thanks to preferential credit from the Government. With a non-profit operational orientation, the branch has consistently ensured the smooth and continuous flow of policy credit, promptly meeting the borrowing needs of poor households, near-poor households, and post-poor households across 102 communes, wards, and special administrative units, including those in extremely disadvantaged, border, and coastal areas.

At present, the branch’s total funding sources have reached nearly VND 14,600 billion (approximately USD 584 million), an increase of VND 1,040 billion (approximately USD 41.6 million) compared to the beginning of the year. Of this, locally entrusted budget capital exceeds VND 1,800 billion (approximately USD 72 million), achieving 166.67% of the 2026 annual plan. Total outstanding loans stand at VND 14,017 billion (approximately USD 561 million), with 304,848 active borrowers and an average outstanding loan of nearly VND 46 million (approximately USD 1,840) per borrower.

VBSP, together with local Party committees and authorities in An Giang, has essentially met the demand for production and business loans among local residents. In addition to mobilizing resources for lending, immediately after the 2026 Lunar New Year holiday, all affiliated Transaction Offices have maintained effective commune-based transaction sessions, accelerated disbursement of policy credit programs, and strengthened risk management and overdue debt control, ensuring that funds reach the right beneficiaries, are used for the intended purposes, and are repaid in accordance with regulations.

As a result, total disbursement in the first quarter of 2026 reached VND 1,204 billion (approximately USD 48.2 million), benefiting 20,264 turns of borrowers from poor households and other policy beneficiaries; loan recovery over the same period reached VND 662.26 billion (approximately USD 26.5 million). Policy credit has enabled poor households and other beneficiaries to access loans for production, business development, job creation, income generation, and livelihood stabilization. Specifically, more than 20,000 turns of beneficiaries accessed policy credit, including the creation of jobs for 1,448 workers, support for 103 workers to work overseas under contract, assistance for 17 ex-offenders to secure employment, provision of student loans for 975 disadvantaged students, lending to 1,790 production and business households in disadvantaged areas, and the construction of 21,880 rural clean water and sanitation facilities.

Preferential Credit: Well-targeted, Effective, and Impactful

Policy credit plays a vital role in promoting production and business development in An Giang Province

One of the highlights of the VBSP An Giang Provincial Branch is its model of regular commune-based transaction sessions. Transaction points are conveniently located to minimize travel time for residents while helping them reduce costs.

Mr. Tran The Loan, Deputy Director of the Branch, shared that through the network of transaction points and regular sessions, bank officers are able to directly listen to the concerns and aspirations of local people and promptly address any difficulties. At the same time, communication on savings mobilization through Savings and Credit Groups is strengthened, contributing to the formation of savings habits and enhancing financial self-reliance within the community.

“We consider policy credit not merely as lending, but as accompanying and guiding people to use capital effectively. When households generate profits and achieve stable incomes, that is the true success of the bank”, Mr. Loan emphasized.

Policy credit is further extended to every village and hamlet through entrusted mass organizations, whose staff support their members, particularly disadvantaged households in accessing loans, improving livelihoods, and stabilizing their lives. The branch maintains close and effective coordination with these organizations, regularly providing training and reviewing implementation practices to ensure lending efficiency and that funds are delivered to the right beneficiaries in a timely and convenient manner.

In line with its key priority for 2026 - improving credit quality while expanding policy coverage, the VBSP An Giang Provincial Branch is prioritizing digital transformation in credit operations to bring modern banking services closer to the people. Digital transformation not only enhances management efficiency but also shortens transaction time, making borrowing more convenient. Accordingly, Transaction Offices have actively deployed software solutions in operations, ensuring safe system performance and gradually implementing cashless payment in line with the roadmap.

In addition, the branch has rolled out the Policy Credit Management Application for stakeholders involved in policy credit management, including Heads of Savings and Credit Groups, village leaders, commune-level poverty reduction officers, Chairpersons of Commune People’s Committees, leaders of mass organizations, representatives at all levels, and VBSP staff.

After a period of familiarization and experience with digital services, particularly VBSP SmartBanking, along with investments in infrastructure and awareness-raising initiatives on digital literacy, most residents in An Giang have become accustomed to banking applications. Digital technology has reached rural areas and households, enabling poor and policy beneficiaries to access banking services via mobile phones. This brings significant convenience, transforms payment and financial management habits, and ensures that no one is left behind in the process of innovation and development.

Over the past 23 years, especially entering 2026 - the first year of implementing the Resolution of the 14th National Party Congress, the efforts of the VBSP An Giang Branch have earned the trust and recognition of local authorities and people, affirming its role as one of the key pillars in sustainable poverty reduction and the assurance of social security and stability.

In response to this trust, the branch aims to continue expanding funding sources and outstanding loans under policy credit programs, while maintaining a smooth and inclusive flow of credit - close to the people, responsive to their needs, and delivering the highest possible effectiveness.

Thanh Van – Dong Du