Dak Lak promotes social policy credit to advance sustainable poverty reduction in rural areas

During the process of administrative unit reorganization and the implementation of the National Target Programs (NTPs), many rural communes in Dak Lak Province are facing significant challenges in poverty reduction. Practical experiences in Ea Ning (new) Commune and Dray Bhang Commune demonstrate that when social policy credit is implemented in a coordinated manner, accurately targeted, and closely linked with livelihood support, preferential loans truly become a “pillar of support,” enabling local people to stabilize their livelihoods and gradually achieve sustainable poverty reduction.

Thanks to fundings from VBSP, several areas in Ea Ning Commune (Dak Lak Province) now meet favorable conditions for fruit tree cultivation, helping increase household incomes

Ea Ning Gains Momentum in Poverty Reduction through Preferential Credit

Following the merger of Ea Hu, Ea Ning and Cu Ewi Communes, the newly established Ea Ning Commune of Dak Lak Province covers a vast area with uneven population distribution. Living conditions in many remote villages and hamlets remain difficult.

According to the approved results of the 2024 periodic review of poor and near-poor households, the commune currently has 208 poor households and 341 near-poor households. This relatively high number clearly reflects the significant challenges facing local authorities in ensuring social security and promoting sustainable economic development.

Against this backdrop, Ea Ning Commune has set a target to reduce the poverty rate by 3% in 2025. To achieve this goal, the local government has developed a comprehensive poverty reduction plan focusing on key solution groups, including livelihood diversification; support for poverty reduction models tailored to the conditions of each village and hamlet; strengthened vocational training linked with job creation; improved nutrition quality; and enhanced access to information and basic social services.

According to Mr. Nguyen Manh Hung, Vice Chairman of the Ea Ning Commune People’s Committee, one of the most practical priority solutions is improving residents’ knowledge and production skills.

In 2024, the commune coordinated with organizations and enterprises to organize multiple technical training courses on durian, coffee and pepper cultivation, attracting approximately 400 farmer participants. These activities are considered an important foundation for helping local people make effective use of land resources and proactively apply technological advances in agricultural production.

Alongside livelihood development, Ea Ning Commune has implemented social security measures in a coordinated manner. All poor and near-poor households in the commune have been provided with health insurance cards, covering a total of 2,236 beneficiaries, thereby enabling residents to feel more secure in accessing healthcare services.

The expanded coverage of the National Target Program on Sustainable Poverty Reduction has also contributed to job creation, income growth, and timely support for children in special circumstances, the elderly, persons with disabilities, and other vulnerable groups.

Within the overall poverty reduction framework, social policy credit has been identified as a key “lever.” Through preferential loans provided by VBSP, many households in Ea Ning have gained access to capital for production investment, household economic development, and long-term livelihood stabilization.

According to Mr. Le Duc Minh, Director of the VBSP Cu Kuin Transaction Office, as of November 30, 2025, total outstanding social policy credit in Ea Ning Commune exceeded VND 180 billion (approximately USD 7.35 million), an increase of more than VND 4 billion (approximately USD 0.16 million) compared to the period prior to the merger. In the coming period, the transaction office will continue to closely coordinate with the Ea Ning Commune authorities to ensure that 100% of eligible poor households, near-poor households, and post-poor households have access to preferential loans for production investment and income improvement. At the same time, social supervision and monitoring will be strengthened to ensure that loan capital is used for the intended purposes and delivers tangible results.

Opening Livelihood Pathways through Preferential Loans

Mr. Y Thih Ksr in Ea Bhok Village, Dray Bhang Commune (Dak Lak Province), harvests coffee in the 2025-2026 crop season

Alongside Ea Ning Commune, practical implementation of social policy credit in Dray Bhang Commune, Dak Lak Province continues to demonstrate the clear effectiveness of preferential loans in supporting local people to develop livelihoods and achieve sustainable poverty reduction.

In recent years, in addition to encouraging the development of production models suited to local conditions, the commune has placed special emphasis on enabling residents to access VBSP loan programs.

A typical example is the family of Ms. H’Diet Kpor in Ea Mta Village. In 2006, her household was classified as poor, facing numerous difficulties due to lack of capital and production inputs. With support from local associations and mass organizations, Ms. H’Diet accessed a VND 50 million (approximately USD 2,040) preferential loan from VBSP. Using this capital, she invested in coffee cultivation on her available land and built pigsties for livestock farming.

Thanks to diligent labor and efficient production organization, the combined coffee-livestock model delivered clear results. Within three years, Ms. H’Diet’s family fully repaid the loan, accumulated capital, and successfully escaped poverty. By 2023, her family continued to access VND 100 million (approximately USD 4,080) from the employment-oriented loan program to expand production.

Currently, her family owns 2 hectares of coffee, with this year’s harvest expected to reach about 2 tons of green coffee beans, generating an estimated profit of VND 200 million (approximately USD 8,160). In addition, they sell 2-3 batches of pigs annually, earning nearly VND 100 million (approximately USD 4,080) more.

In Ea Bhok Village, Mr. Y Thih Ksr has also gradually improved his living conditions through social policy credit. In 2021, he received a VND 50 million (approximately USD 2,040) loan under the poor household loan program to invest in caring for 0.5 hectares of coffee and intercropping pepper. By boldly applying modern agricultural techniques, his crops grew well and achieved stable yields, helping his family overcome a difficult period.

At the beginning of 2025, Mr. Y Thih received additional support of VND 40 million (approximately USD 1,630) to further expand production. “Coffee is now in the harvest season, and output is forecasted to be better than previous years. I hope to cover medical costs for my wife and children and gradually lift my family out of poverty”, he shared.

According to the Dray Bhang Commune People’s Committee, the review and approval of eligible borrowers for social policy credit is always conducted seriously, transparently, and publicly. Commune authorities assign leaders and specialized staff to promptly verify applications, ensuring VBSP disburses loans to the right beneficiaries at the right time. As a result, the capital is effectively recycled, contributing to improved living standards and promoting sustainable local economic development.

It can be affirmed that experiences in Ea Ning and Dray Bhang Communes show that social policy credit in Dak Lak Province is not merely a financial resource but an important “pillar of support” in the journey toward sustainable poverty reduction. When preferential loans are targeted accurately, linked with vocational training, technical support, and social security measures, residents gain better conditions for production investment, livelihood stabilization, and poverty alleviation.

This foundation enables rural localities, following administrative mergers, to gradually improve living standards and promote sustainable, inclusive, and long-term socio-economic development.

Minh Anh