Effective uses of preferential credit in Phu Yen Province

Many residents in ethnic minorities and mountainous areas had chances to access to preferential loans for economic development and sustainable poverty reduction.

Ms. H Mon Ni E made use of preferential credit to improve her family’s quality of life 

Ms. H Mon Ni E’s family (in Eabar commune, Song Hinh district) was one of the poor households in the area for a long time. With the help from the Women's Union and the Farmers' Association of Eabar commune, her family received a pair of goats. After a trial period of farming, it really brought the economic efficiency to her family. Therefore, she decisively borrowed VND 80 million of preferential credit from the Government to invest in farming and repair her house.

From the initial pair of goats, the herd has developed to 17 goats. They were expected to be sold in Lunar New Year for recovering capital. Ms. Ni E's house was also renovated for stable accommodation. Ms. H Mon Ni Ê shared: “Thanks to the mass organizations, as well as the Government's preferential credit policy, my family's economy is getting more stable. we are not in the list of poor household anymore, since last year”.

In Dong Xuan district, many households were also able to access preferential credit policies according to Decree No.28/2022/ND-CP of the Government.

So Minh Hoang’s family (Xuan Quang 1 commune, Dong Xuan district) was in disadvantaged situation with unstable jobs and poor accommodation. Luckily, he received a loan of VND 60 million from VBSP’s Dong Xuan district. With this amount of money, he repaired his house, invested in planting sugarcane, cassava and raising cow. Up to now, Mr. Hoang gradually paid off his debt, got out of poverty, and his family’s work became more and more stable.

Nguyen Ngoc Hung, Director of VBSP Dong Xuan district said: “we actively propagated the preferential credit programs to households in ethnic minorities, so that they could access the loans of Decree 28. In addition, the preparation of documents and disbursement are also strictly implemented to the right subjects to effectively promote policy credit, contributing to social security in the area”.

After nearly 20 years of implementing Decree 28, more than 1,200 households received loans from VBSP with an average disbursed amount of nearly VND 60 billion. Many households used loans effectively with some typical economic models replicated, contributing to economic development in ethnic minorities and mountainous areas in Phu Yen province.