Effectiveness of Policy Credit in the Highland Areas

Identifying poverty reduction as a key task in local economic development and social security assurance, the Party Committee and government of Bac Kan province have implemented many comprehensive and effective solutions. One of the core measures has been mobilizing all available resources and capital for the implementation of social policy credit, contributing to transforming the landscape of this Northeastern region.

Borrowers discussing with VBSP officers about household economic development

Focusing on Sustainable Poverty Reduction

Bac Kan is a mountainous province with diverse terrain, where over 80% of the population are ethnic minorities. In recent years, the entire political system has actively focused on implementing socio-economic development programs, building new rural areas and achieving sustainable poverty reduction by supporting people to improve their income. The movement of production development has received joint efforts across all levels and sectors, with the Vietnam Bank for Social Policies (VBSP) making an important and effective contribution.

Mr. Ha Sy Con - Director of VBSP Bac Kan Provincial Branch shared: Since its establishment in 2003, the branch has always closely followed the guidelines and resolutions of the Party and State. As a result, the branch has effectively implemented suitable solutions, mobilized large amounts of capital and ensured the smooth flow of policy credit, making practical contributions to poverty reduction and improving the quality of life for residents.

As of March 31, VBSP Bac Kan Provincial Branch has implemented 12 government preferential credit programs with a total capital of VND 3,528 billion, an increase of VND 22.5 billion compared to the end of 2024. This result demonstrates the effective implementation of Directive No. 40-CT/TW dated November 22, 2014. It also shows the effective centralization of State budget-originated funds into one focal point – VBSP, and the allocation of local budget funds through VBSP for lending to poor households and other policy beneficiaries.

To date, the entrusted capital from the local budget has reached over VND 137 billion. This preferential capital is promptly delivered to the correct beneficiaries through the system of commune transaction points and Savings and Credit Groups in villages, enabling local people to access inclusive fund for timely production and farming, thereby generating income.

Effectively Implementing Preferential Credit

Over the past five years, the branch's lending turnover has exceeded VND 4,836 billion, benefiting 97,276 poor households and policy beneficiaries. This has contributed to the successful implementation of the provincial Party Committee’s resolution on poverty reduction, with the poverty rate decreasing by an average of 2–2.5% per year. In poor districts and extremely difficult communes, the reduction has been more significant (about 4–5%).

Mr. Nghiep’s family (in Na Leng village, Yen My commune, Cho Don district) was a poor household. In 2020, his family received a cow under the National Target Program on Sustainable Poverty Reduction. Later, he boldly borrowed VND 60 million from VBSP to purchase 8 more cows, invest in barns and plant grass for livestock development. The herd of cows and buffaloes grew well and brought stable income, helping his family get out of poverty and earn extra income. With more capital, he expanded into porcupine farming and afforestation to further improve his family's living conditions.

Although Bac Kan has been a locality with geographical difficulties and a large ethnic minority population, VBSP Bac Kan Provincial Branch has made great efforts to centralize resources and effectively implement the Government’s policy credit programs.

Minh Uyen