Dien Chau Transforms Thanks to Preferential Credit Funding

The coastal land of Dien Chau District (Nghe An Province) stretches along the North-South axis, with lush green fields of beans and peanuts, flat beaches rich in shrimp and fish resources. The area is witnessing remarkable transformation thanks to the support of preferential credit funding from VBSP. Thousands of households have overcome hardship, developed production, improved their livelihoods, and sustainably escaped poverty.

Mr. Nguyen Van Tuan, Director of VBSP Dien Chau Transaction Office, chaired a meeting to review the implementation of tasks for the last months of 2025

The story of Mr. Duong Van Khieu and Ms. Pham Thi Hue (in Hamlet 3, Quang Chau Commune) is a vivid example of positive change in life. Thanks to a preferential loan from the Credit Program for Poor Households, the couple invested in raising brackish-water fish and shrimp. Today, their family enjoys a more stable life, their children receive better education, and their home has become more spacious and solid.

Many households in Dien Chau have proactively developed business and production activities, improving their living conditions with the support of policy credit

Similarly, Ms. Pham Thi Luyen, residing in Hamlet 8, formerly in Dien Lien Commune (now part of Quang Chau after administrative merger), exemplifies determination and the will to prosper on her homeland. After years of financial struggle, she boldly took a loan of VND 100 million (approximately USD 4,000) under the Credit Program for Production and Business Households in Disadvantaged Areas. The loan was invested in purchasing quality seedlings and fertilizers to cultivate 500 square meters of specialty fruit trees such as pomelo, orange, and jackfruit. With the support of the loan and her hard work, Ms. Luyen’s integrated VAC model (garden-pond-livestock) has flourished. Her abundant harvests not only improved family income but also helped her gain experience and savings to expand production and livestock farming.

Thanks to preferential credit funding, many households in Dien Chau have proactively developed their production and business activities, improving their living standards

Director Nguyen Van Tuan shared: “Despite the difficulties, seeing our homeland becoming more prosperous and people’s lives improving thanks to preferential credit makes us forget all fatigue. VBSP officers are always dedicated to staying close to local communities, supporting borrowers in accessing and using loans effectively”.

Since its establishment, under the close direction of higher-level VBSP units, local Party Committees, and authorities, along with the coordination of entrusted mass organizations and the collective efforts of VBSP staff, VBSP Dien Chau Transaction Office has ensured smooth, uninterrupted implementation of policy credit programs. The office has promptly met the borrowing needs of poor, near-poor, and post-poor households across 32 commune-level administrative units before the merger and 8 new communes after the merger.

VBSP staff frequently visit and inspect borrowers’ use of loans to ensure effectiveness

In recent years, VBSP Dien Chau has made great efforts to mobilize funding from various channels and diversify loan sources, particularly focusing on entrusted local budget capital and funds mobilized from local organizations, businesses, and individuals. As of September 30, 2025, the Transaction Office implemented 14 lending programs, nearly seven times more than in 2003, with total loan capital exceeding VND 1.1 trillion (about USD 44 million) - up nearly VND 52 billion (about USD 2 million) compared to early 2025. Among these, both locally mobilized funds and entrusted capital from the provincial budget recorded significant growth. Notably, VBSP Dien Chau now maintains the highest outstanding loan balance in Nghe An Province, with over VND 1.062 trillion (about USD 42.5 million).

Transaction points of the VBSP Dien Chau Transaction Office actively facilitate local residents in accessing preferential loans conveniently

During the journey to implement sustainable poverty reduction, especially over 10 years of Directive No. 40-CT/TW by the Party Secretariat on strengthening the Party’s leadership over social policy credit, VBSP Dien Chau has made a strong mark as the unit with the largest outstanding loan balance in Nghe An, exceeding VND 1 trillion (USD 40 million). The office has provided loans to 53,261 poor, near-poor, and post-poor households, with cumulative loan disbursement surpassing VND 1.837 trillion (USD 73.6 million), helping disadvantaged households gradually escape poverty sustainably.

Over the past decade, 75,128 households in Dien Chau have accessed loans to develop production and escape poverty; 2,888 households have replaced temporary or dilapidated houses; 49,876 households have built standard safe water and sanitation facilities; 24,528 disadvantaged students have received student loans; 3,659 workers have borrowed loans for job creation; and 896 people have received funding for overseas employment. Policy credit has made a vital contribution to reducing the district’s poverty rate from 5.2% in 2014 to 1.6% in 2024.

Mr. Ha Xuan Quang, Secretary of the Dien Chau Party Committee and former Secretary of the former Dien Chau District Party Committee, affirmed: “Policy credit activities implemented by VBSP are a deeply humanitarian solution, well suited to local realities, and have become a solid ‘supporting pillar’ helping poor, near-poor, and post-poor households in Dien Chau improve livelihoods, invest in production, and achieve sustainable prosperity”.

The journey of preferential credit in the coastal lowland of Dien Chau continues steadfastly and dynamically. The local VBSP staff remain united and dedicated to mobilizing diverse funding sources, ensuring safe and timely delivery of preferential loans directly to rural villages and the right beneficiaries, contributing to the effective implementation of Directive No. 39-CT/TW (October 30, 2024) on enhancing the effectiveness of social policy credit in the new period.

Minh Uyen