Getting out of Poverty and Building Wealth with Preferential Loans

In recent years, with preferential loans from the Vietnam Bank for Social Policies (VBSP), thousands of farming households in Lang Son Province have boldly taken loans to expand production and business models. The loans have played a crucial role in helping farmer members improve their economic conditions and rise to prosperity.

Many farming households in Thac Ma Village, Huu Kien Commune, Chi Lang District have accessed preferential loans to raise commercial white horses

Determined to Escape Poverty

In the past, Mrs. Vi Thi Nguyen's family (from Phieng Et Village, Dong Quan Commune, Loc Binh District) was classified as a poor household, lacking capital to develop production. In 2019, with guidance from the leader of the village’s Savings and Credit Group and the staff of VBSP Loc Binh District, her family applied for a loan of VND 50 million from the program for poor households. The loan was used to plant pine trees.

Mrs. Nguyen joyfully shared: “Thanks to the loan, my family purchased fertilizers, harvested some pine trees and planted new ones. During the loan period, I actively attended technical training sessions organized by the commune. As a result, our pine forest has thrived. Since 2022, some areas of the pine forest have been ready for harvest, generating an annual income of VND 90 million for our family. Now, we have risen out of poverty, and our lives are gradually improving".

According to Mr. Au Van Hung - Chairman of the Dong Quan Commune People’s Committee, the commune currently has nearly 200 poor households taking loans from VBSP, with a total outstanding loans of over VND 13.4 billion. Dong Quan has the highest program loan balance in the district. These loans have been effectively utilized by local households, enabling them to plant pine, acacia and eucalyptus forests, contributing significantly to the commune’s poverty reduction efforts.

Bringing Loans Directly to Households

Currently, Lang Son Province has more than 17,800 farmer members accessing to preferential loans, with a total loan balance exceeding VND 1.183 trillion. Some of the major credit programs include loans for poor households, near-poor households, post-poor households, job creation and production and business in disadvantaged areas.

Mr. Phan Anh Thang, Deputy Director of VBSP’s Lang Son provincial branch, stated that over the years, the branch has consistently considered preferential loans as a critical support mechanism to help farmers escape poverty and achieve prosperity. To ensure timely access to these loans, the branch has actively coordinated with the Provincial Farmers' Association to widely disseminate information about the government’s preferential lending programs, particularly new programs and policies.

Additionally, the branch has directed VBSP transaction offices to collaborate with the Farmers' Association to ensure proper loan approval processes. At the commune transaction points, bank staff conduct monthly transactions, such as disbursing loans, collecting interest and repayments, explaining new policies and guiding borrowers on the effective use of funds suitable for their household circumstances. By ensuring transparency and democracy, the bank’s funds quickly reach farmer members, enabling them to develop their economies and rise out of poverty.

Alongside accelerating the disbursement of credit programs, the branch has also prioritized improving credit quality, regularly reviewing and strengthening the operations of Savings and Credit Groups. As a result, overdue debts under the Provincial Farmers' Association remain low, accounting for only 0.04% of the total outstanding loans.

Furthermore, the branch has actively coordinated with the Farmers' Association at all levels to train association staff managing entrusted activities and Savings and Credit Group leaders in basic knowledge and skills on credit management, monitoring, and risk prevention. It also guides poor households and other policy beneficiaries on using loans effectively and for the right purposes.

Clearly, VBSP’s preferential credit programs have become a vital driving force, supporting farmers across Lang Son Province in their journey to reduce poverty and gradually achieve prosperity on their homeland.

Hung Trang – Bao Thu