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Updated: 2024-06-10 16:47:57

Effectiveness of social policy credit in poor Muong Khuong district

After nearly 10 years (2014 - 2024) implementing Directive No. 40-CT/TW of the Secretariat, poor Muong Khuong district (Lao Cai) have prospered, social policy credit has promoted effectively, contributing to promoting socio-economic development and sustainable poverty reduction in the locality.


Model of growing tangerines from policy credit loans of Mr. Sung Seo San

In May 2023, Mr. Thao Seo Pao (in Cung Lung village, Din Chin commune) was disbursed VND 100 million by VBSP Muong Khuong district to raise buffalo and cows for reproduction. For a poor household like Mr. Pao's, this was an important amount of money to help his family develop economy, increase income and get out of poverty. Mr. Pao said: "My family was very happy to take a loan with preferential interest rates. My family bought 1 pair of cows and 1 pair of breeding buffaloes, and now has 2 more calves. Currently, my family has paid VND 30 million to the bank".

In 2019, Mr. Sung Seo San's family (in Ta Lu village, Ta Ngai Cho commune) was also disbursed VND 50 million from VBSP according to Resolution 06/2019/NQ-HDND dated July 10, 2019 of the Provincial People's Council on using the local budget entrusted through VBSP for socio-economic development. Although the loan amount was not big, it helped his family have more resources to buy tangerine seedlings and fertilizer during the production season. Mr. San shared: Due to the large arable land, his family lacks capital to cover the entire area with tangerine trees. Luckily, during the difficult time, his family receive a loan from VBSP according to Resolution 06 of the Provincial People's Council to buy seedlings and fertilizer.

In 2023, Mr. San's family harvested sweet fruit on the area of ​​tangerine trees. “My family saved VND 30-40 million for the first harvest. This year's crop is more fruitful, expecting to yield twice as much as last year's crop. After paying off the bank debt, my family will continue to take bank’s loan to develop livestock and farming, increasing income", Mr. San added.

The economic development model of Mr. Pao and Mr. San's households is a clear demonstration of the effectiveness of policy credit in poor Muong Khuong district. According to the results of the survey in 2023, there are 4,711 poor households in Muong Khuong district, accounting for 33.19%; 3,825 near-poor households, accounting for 26.94%. Therefore, when Directive No. 40-CT/TW of the Secretariat was implemented, local party committees and authorities closely followed the direction, considering this as one of the key tasks in order to effectively use financial resources from the Government's preferential loan programs through VBSP, so that local people in poor areas could access to preferential credit to invest in production, increase income and improve their quality of lives.


VBSP Muong Khuong District promptly disburses policy loans to local people

By March 31, 2024, the total outstanding debt of policy credit programs reached VND 50.6 billion; Of which, the provincial budget capital transferred was VND 43.5 billion, the district budget capital transferred was VND 7,114 billion with 795 households taking loans. Loan capital focuses on households expanding service businesses, raising livestock and planting production forests.

Through policy credit, 25,816 poor, near-poor, post-poor households and policy beneficiaries in Muong Khuong district have received loans. Thanks to that, tens of thousands of poor households and other policy beneficiaries received preferential loans to create jobs, develop production and business, restructure crops and livestock, renovate safe water and sanitation facilities, repair houses… contributing to ensuring social security, improving people's living conditions and gradually getting out of poverty.



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