Ex-prisoners stabilize their lives thanks to policy credit

After more than one year, the credit policy for former prisoners in Thai Nguyen Province has yielded positive results. However, to ensure the program's sustainable effectiveness, certain obstacles need to be addressed...

Mr. M. (in La Le Hamlet, Tan Thanh Commune, Phu Binh District) took a loan of VND 100 million under Decision 22 for livestock farming

New Opportunities for Ex-prisoners

After more than one year of implementing Decision 22 (from October 2023 to the end of January 2025), 318 individuals in Thai Nguyen have received loans under this program, with a total outstanding balance of nearly VND 30 billion. Thanks to these policy-based funds, many borrowers have focused on livestock farming, crop cultivation and service businesses. Some have even started small production models, generating stable incomes and gradually overcoming financial difficulties.

Mr. M., born in 1951 and residing in La Le Hamlet, Tan Thanh Commune, Phu Binh District, shared: "After serving my prison sentence and returning to my hometown, I took a loan of  VND 100 million in March 2024 to buy two buffaloes, three breeding pigs and around 100 chickens. Thanks to this loan, I had opportunity to rebuild my life and gradually stabilize my family's financial situation".

Similarly, Mr. H. (from Tien Phong Hamlet, Duc Luong Commune, Dai Tu District) received guidance on accessing VBSP's preferential credit program after completing his prison sentence. He successfully obtained a loan of VND 100 million, which was used to purchase tools and equipment for his construction business. Currently, he has secured several residential construction contracts, providing stable jobs for about 20 workers, each earning an average of VND 10 million per month. With his growing income, he has even purchased a car and his family's financial situation has significantly improved.

According to Ms. Nguyen Thi Huong - Deputy Director of VBSP Phu Binh district: "After more than one year of implementing Decision 22, the total loan disbursement in Phu Binh has reached nearly VND 12 billion, benefiting 128 borrowers, accounting for nearly 40% of the province's total outstanding loans. These results demonstrate that policy-based credit has effectively met practical needs, providing financial resources for production and business activities, creating jobs and livelihoods for former offenders and helping them rebuild their lives".

Positive Transformations

VBSP Thai Nguyen Provincial Branch and the Provincial Police signed a coordination program to implement Decision No. 22/2023/QĐ-TTg

The credit policy not only helps former prisoners secure employment but it also has a significant impact on local economic development. According to statistics, 75% of borrowers achieved stable incomes within 6 to 12 months, earning an average of 6 to 10 million VND per month. With financial support, many small businesses have thrived, increasing revenues by 15-30% and enabling borrowers to become financially independent.

Mr. Nguyen Van Hop (Tien Truong Hamlet, Tien Hoi Commune, Dai Tu District) struggled with many challenges after completing his prison sentence. After learning about Decision 22, he boldly applied for a 100-million-VND loan from VBSP Dai Tu District. With this funding, he utilized his available water surface and hillside to raise fish, offer fishing services and grow fruit trees. His family now earns around VND 120 million annually, ensuring financial stability.

Beyond economic benefits, the policy has significantly reduced recidivism rates. The recidivism rate among loan recipients is below 5%, much lower than the 10-15% rate among those without access to financial support. This demonstrates that stable employment and income motivate former offenders to lead better lives and reduce their likelihood of reoffending.

Ms. Hoang Thi Nhung - Head of the Savings and Credit Group in La Le Hamlet, Tan Thanh Commune, Phu Binh District, stated: "Those who receive loans greatly appreciate the opportunity of taking preferential policy loans. They use the funds for legitimate purposes, focusing on production and business development. Many have transitioned from unemployment and financial hardship to stable incomes, gradually getting out of poverty. However, some still face challenges in financial management and require additional support in business planning".

Furthermore, community attitudes towards former prisoners are gradually changing. While there was once a strong stigma against them, many people are now more open and willing to provide support after seeing their honest efforts in making a living.

It is evident that VBSP's credit program for former prisoners serves as a “warm embrace” to help them reintegrate into society.

Remaining Challenges

Despite these encouraging results, implementing the credit policy still faces significant challenges. One major barrier is access to capital. Many former prisoners lack collateral or guarantors, making it difficult for them to secure loans.

Upon returning home after serving a four-year sentence, Đ.V.T. (Phuc Triu Commune, Thai Nguyen City) struggled due to a lack of financial resources. "After completing my sentence, I found it extremely difficult to get back on my feet. Fortunately, I received support through a loan under Decision 22, which allowed me to start over", he shared.

Psychological barriers also pose a significant challenge. Many former prisoners feel ashamed and hesitant to seek financial assistance from local authorities or financial institutions, causing them to miss out on beneficial programs.

Mr. Pham Trong Huy, Head of the Savings and Credit Group in Dong Noi Hamlet, Phuc Triu Commune, noted: "Many individuals returning to their communities are reluctant to engage with local organizations, particularly in seeking financial aid. We have to proactively reach out, provide information and encourage them to participate in the program".

Solutions for Effective Policy Implementation

According to Mr. Le Van Hong - Deputy Director of VBSP Thai Nguyen Provincial Branch, to maximize the policy’s effectiveness, authorities and relevant agencies must strengthen outreach efforts to help ex-prisoners understand their rights and the process of accessing financial support. Additionally, training programs on financial management and business skills should be organized to ensure effective loan utilization.

Involving mass organizations in the support and monitoring process is also crucial. These organizations play a key role in identifying, advising and guiding borrowers in business planning while overseeing loan usage to ensure efficiency.

Moreover, a flexible credit guarantee mechanism should be established, allowing mass organizations or local authorities to act as guarantors for borrowers without collateral. Strengthening cooperation with businesses and production facilities to expand employment opportunities for this group will also help them secure stable and sustainable jobs.

Minh Phuong