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Client success stories

Updated: 2016-03-10 09:28:00

Leap forward in job creation and poverty reduction

On the eve of the Lunar New Year , accompanied by some staff of VBSP of Hung Nguyen District, we visited Nguyen Van Cuong’s family in hamlet 6, Hung Chinh commune. In the warm, spacious house with all necessary conveniences, Cuong said to us.

Mới được vay vốn gần 1 năm nay nhưng hộ gia đình ông Nguyễn Công Đình đã phát huy hiệu quả đồng vốn vay

Only 3 or 4 years ago, Cuong’s family was among the poorest households in the commune. The whole family lived on income from just 4 perches of paddy field, this crop was to repay the debt for previous crop, thus, they was always in starvation. In 2003, he borrowed VND 5 million from VBSP. By investing the right way in feeding cows and pigs, he has finished repaying all principal and interest to the Bank in 2005.

Also in 2005, he got another loan of VND 7 million . He used the loan to buy another cow and repair cattle and poultry cages. At present, his family’s income reaches VND 25 million /year, thus, gradually escaping poverty to become a pretty well-off family in the hamlet. Not only Cuong’s family, other families in Hung Nguyen after receiving loans from VBSP has also invested in promising business like applying the model of combinating pig and cow raising with aquaculture or farming etc,.

It is this movement which helps many families in Hung Nguyen not only escape poverty but also become typical examples  of doing business successfully. Some of them are Hoang Van Linh in Bui Chu hamlet (Hung Trung), Le Thi Be – ward 1 of the town, Nguyen Van De in hamlet 6, Hung Phuc commune. Le Van Loi in hamlet 7, Tran Thi Que in hamlet 1, Hung Phuc commune. So far, VBSP of Hung Nguyen outstanding loans has reached VND 38.9 billion . In 2006 in particular, VBSP has lent 3,484 loans with total amount of VND 16.3 billion.

Through 217 Savings and Lending groups in the district, there are 5,143 turns of poor households receiving loans with total outstanding of VND 30 billion , on average, each household receives VND 6 million .Average loan size increases by VND 1-2 million as compared to 2004, thus, reaching VND 5-7 million /households. Thanks to those loans, in 2006, Hung Nguyen has 1,145 households escaping poverty. Remarkably, within the last year, the Project of Sustainable Poverty Elimination has reached the poor in 3 disadvantaged communes, i.e. Hung Trung, Hung Linh and Hung Lam. Total loan outstanding is VND 3.78 billion with total household borrowers of  850.

There are 1000 cows and bulls have been bought by loans from VBSP. Besides lending to the poor, BSP of Hung Nguyen also implements Job Creation Program with total outstanding loans of VND 2.7 billion. In 2006, VBSP lent to 11 job creation projects with total amount of  VND 1.1 billion , thus, creating jobs for more than 800 unemployed in the district. In addition to lending to the poor, job creation, disadvantaged students, BSP of Hung Nguyen has conducted effectively the Program of Clean Water and Sanitation which results in total outstanding loans of VND 5.17 billion and 1,300 new clean water and rural environment sanitation works.

Hence, Hung Nguyen people enjoy not only chances to escape poverty but better living conditions as well, i.e. using clean water and standard sanitation works which protect community health. In addition, BSP of Hung Nguyen last year offered favorable conditions to those who want to work abroad by fast and exact dossier approval.

Up to now, 70 policy households in the district has received loan with total amount of VND 1 billion for working abroad. Thus, it can be assured that, thanks to VBSP loans, Hung Nguyen in recent years has witnessed leap forward in job creation and poverty elimination. The right purpose and right way of loan utilization has enhanced socio-economic development of Hung Nguyen. Therefore, Hung Nguyen at present has 600 successful economic models which contribute to the decrease of number of poor households from 22.54% to 17.99% in 2006.

Being said to be “the midwife” of the poor, BSP of Hung Nguyen now continues to implement synchronous measures, utilize synthetic power of agencies and investment resources to develop effectively Job Creation and Poverty Elimination Programs, and so facilitate the poor in Hung Nguyen with chances to escape poverty, reaching better financial status.

Nghe An Newspaper



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