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Updated: 2019-11-27 17:19:49

VBSP contributes to improve livelihood in remote border areas

Along to mountain pass road to the most remote and disadvantaged districts of Dien Bien such as Nam Po, Muong Nhe, people would understand the importance of inclusive financial services . Providing many credit programs for the poor and other beneficiaries, Vietnam bank for social policy (VBSP) together with them in hunger eradication, poverty reduction and land preservation and protection.

Mr. Duong Quyet Thang, General Director of VBSP, checked information on financial schemes tailored for the poor in Sin Thau commune, Muong Nhe district, Dien Bien province.

New rural areas development

In the contrary of the past with the main source of income from opium cultivation, Si Pa Phin commune in Nam Po district nowadays has the productive and qualitative seasons of rice, maize and cattle which bring prosperity to the local people.

2010 marked a new development milestone on this land with the development orientation of animal husbandry in the area. Vice Chairman of Nam Po District People's Committee - Head of the Board of Representatives of VBSP district office, Rank Nhe Ly, said: VBSP was the only available source of credit support on this land in addressing social security policy issues since the district was established in 2012.

Thanks to inclusive financial services, many households in Nam Po district have changed their lives completely. For example, Mua Thi Sanh’s family in Nam Chim 1 hamlet, Si Pa Phin commune has borrowed VND 50 million to buy a pair of buffaloes in early 2016 for production development. After more than two years, two buffaloes became four, she has just sold one of them for VND 30 million to buy a plow and repay the loan. “One more buffalo to sell can pay off her remaining loan of VND 32 million. So two buffaloes left is her family’s profit since borrowing from VBSP, which shows the effectiveness of inclusive finance” –Mr. Duong Quyet Thang, General Director of VBSP shared experiences with people in the field trip.

Up to now, there are 987 households out of 1,089 households in Si Pa Phin becoming VBSP‘s customers with outstanding loans of VND 42.7 billion. Looking back five years, from 2015 to 2019, the loan turnover was more than VND 50.6 billion with 1,497 households accessing to capital to create jobs, develop production and business, increase income and stabilize and improve the quality of life. Chairman of People's Committee of Si Pa Phin, Season A Hoa express: The effectiveness of loan has been improved, significantly contributing to the implementation of the national goal of sustainable poverty reduction and social security assurance, jobs creation, political stability and social order in the commune. With more than 90% of ethnic minorities distributed in 16 villages, the poverty rate of the commune is only 58.68%; near poor households rate is 12.58%. The inclusive finance has made Si Pa Phin one of the district's bright spots on building new rural areas.

The inclusive finance is more precious when Nam Po is the most difficult district in Dien Bien province with nearly 98% of ethnic minorities, of which Mong people account for the highest rate of 69.18%; 8 out of 15 border communes bordering Laos. Lending turnover from 2015 to the end of October 2016 is VND 362 billion, reaching to more than 12.7 thousand poor households and other policy beneficiaries in the area for loans to create jobs, develop production and business. The average annual income increases from VND 7.73 million/person in 2015 to VND 11.9 million/person at present. Also, the poverty rate reduced from 72.09% in 2015 to 60.12% in 2018. Until now, the district has a new rural area, reaching the finish line two years earlier.

Sustainable poverty reduction

Mr. Le Van Quy, Vice Chairman of Dien Bien Provincial People's Committee - Head of the Representative Board of VBSP, said that the province is currently implementing 19 credit programs with outstanding loans of more than VND 2,846 billion, supporting 78,160 customers (accounting for 61.2% of total households in the area), an average loan of VND 36.4 million/household. Especially since 2014, seven new credit programs have been deployed in the area such as loans to support production, change jobs and migrant worker; loan to households and people with HIV/ADIS, post-detoxification drug users, etc. As a result, more than 122 thousand turns of poor households and other policy beneficiaries receiving loans from VBSP with a lending turnover of VND 3,834 billion, decreasing the annual poverty rate by 3%-4%.

“These figures show that inclusive finance is an important source to contribute the socio-economic development of Dien Bien province. This is also a source combating black credit to the poor and vulnerable people, maintaining social order and safety, national defense and security and maintaining national sovereignty borders. The beliefs of people to Government have been strengthened and improved"- said Mr. Le Van Quy - Vice Chairman of the Province.

On the side of VBSP, General Director Duong Quyet Thang emphasized that the competent authorities will accompany with VBSP to spread capital to all eligible households. Therefore, in order to increase the outstanding loans, the determination of the loan purposes as well as the suitable objects will be the principle to provide additional capital to the area. VBSP’s long-term goals are to expand scope of production, shorten poverty reduction progress, especially in large areas to develop fruit trees, pharmaceuticals and animal husbandry.

 Source: nhandan.org.vn



Poor Households

Lending to poor households 6,6%/year
Lending to poor households in 64 poor districts as stipulated by the Government Resolution No.30a in 2008 3,3%/year

Near Poor Households

Lending to near poor households 7,92%/year


Lending to disadvantaged students 6,6%/year

People in need of loans for job creation

Lending to business establishments owned by war invalids and handicapped persons 3,3%/year


Term Deposit Rate
Overnight 3,04%/year
1 week 3,23%/year
2 week 3,5%/year