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Updated: 2023-12-14 13:35:21

Highland people get out of poverty thanks to policy credit

Policy credit is not only a companion of ethnic minorities but also a "pedestal" to help mountainous district authorities achieve poverty reduction goals. In Thanh Hoa province, many people in remote areas have got out of poverty and enriched themselves thanks to the VBSP’s preferential credit.


Mr. Ha Van Xam's family get out of poverty, built a spacious house and had a stable life from VBSP’s preferential credit

Due to not having capital to invest in production, Mr. Ha Van Xam’s family, a Muong ethnic group in Coc village, Nam Tien commune, Quan Hoa district was surrounded with hunger and poverty. His life just depended on a few acres of bamboo, but it was also unstable. In 2000, with the advice of the credit officer of VBSP Quan Hoa district, he decisively borrowed VND 50 million to raise buffaloes. The climate and terrain conditions were suitable to raise buffaloes for meat. His family's model of buffalo farming has been effective.

In 2023, he has continued to borrow VND 100 million from the VBSP’s program for the production and business households in disadvantaged areas to invest in breeding buffalo and cows. Currently, his family has 2 cows and 8 buffaloes with an average annual income of VND over 100 million. From a poor household, his family has currently got out of poverty, built a spacious house and had a stable life.

According to a report from VBSP Quan Hoa district, in 2023, policy credit lending revenue is estimated to reach VND 159.8 billion with over 2,574 active borrowers. In which, 2,416 customers are ethnic minorities. Policy credit capital is invested in developing production, livestock, farming, creating livelihoods and creating jobs for people in the district. Specifically, over 175 local workers created jobs, 64 ethnic minority migrant workers to Russia, Taiwan (China), and Korea with an income of VND 17 - 30 million. During the year, there are 1,707 customers who borrowed loans to raise buffaloes and cows. Ha Kieu Oanh, Deputy Director of Quan Hoa district said that policy credit capital contributed to reducing the number of poor households from 3,094 households (in 2022) to 2,519 households (at the end of 2023), a decrease of 4.6% compared to the end of 2022 and 11% compared to 2021.

Mr. Pham Van Hung's family, Muong ethnic group, Coc Moc village, Dong Luong commune, Lang Chanh district, started economic development with the model of growing oranges and grapefruits in 2014. However, due to lack of experience and limited capital, his economic efficiency was not high. In 2019, from a loan of VND 50 million of VBSP Lang Chanh district, his family planted other trees that brought high economic efficiency such as avocado, mango, acacia. In 2023, he borrowed another VND 100 million of creation jobs program from VBSP Lang Chanh district. Up to now, the profit from growing fruit trees has been VND 200 - 250 million, creating jobs for 10 local workers.

By early December 2023, VBSP Lang Chanh District has disbursed more than VND 111 billion to nearly 2,100 loan customers for economic development and poverty reduction. In which, mainly ethnic minority households have borrowed to plant forests, develop production, and create jobs with the highest loan amount of VND 100 million. Through annual inspection and evaluation, it shows that most people use loans for the right purpose. To make it easier for people to borrow capital and reduce travel costs, VBSP Lang Chanh district has established 10 transaction points in communes and towns with 155 Savings àn Credit groups.

Le Viet Toan, Deputy Director of VBSP Lang Chanh district said that thanks to policy credit, the district's poverty rate in 2023 decreases to 19% (a decrease of 11.62%); near-poor households decreased to 32% (a decrease of 5.48%). Ethnic minorities are increasingly proactive and flexible in innovating business methods to find a way to get out of sustainable poverty. In addition to traditional crops and livestock, people are gradually exploring and learning to approach new models, bringing higher economic efficiency...

According to Nguyen Ngoc Thanh, Deputy Director of VBSP Thanh Hoa Branch, in 2023, the branch continues to deploy loans for policy credit programs, the total outstanding loan has currently reached VND 13,650 billion, an increase of VND 1,510 billion compared to the begin of the year. Social policy credit capital has contributed to reducing the poverty rate in the whole province from 1.5% to 2%.

Khieu Tu - Nguyen Nam




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