Maximizing the Effectiveness of Policy Credit in Thai Nguyen (Final Part: The Pillar of Sustainable Poverty Reduction)

Recognizing poverty reduction as a key focus for economic development and social welfare, the Party Committee and authorities of Thai Nguyen Province have implemented numerous synchronized and effective measures, including expanding access to policy credit for the local population. These efforts have helped Thai Nguyen in national economic development and maintained its position as a growth hub in the Northeast region.

Policy credit have played a significant role in making Thai tea popular in Vietnam market

Impressive Poverty Reduction Achievements

On the historic and revolutionary land of Thai Nguyen, home to the ATK Dinh Hoa National Historical Site, the economic and social landscape has transformed remarkably, particularly in the most challenging areas such as remote, ethnic minority and former resistance zones.

With 113 poverty reduction models and projects successfully implemented, achieving 205% of the planned target, and over 2,500 poor households supported with housing, the province has seen a poverty rate reduction of 3.78%. Over the past three years, poverty has decreased at an average annual rate of 1.26%, surpassing the original targets. These results highlight the unified efforts of the entire political system and the practical effectiveness of policy credit programs in Thai Nguyen.

Through 177 transaction points across communes, wards, and 2,628 Savings and Credit Groups (SCGs), VBSP loan officers have facilitated access to preferential credit services for the poor. According to Ms. Bui Thi Sen, Chairwoman of the Vo Nhai District People's Committee, the implementation of Directive No. 40-CT/TW has become a breakthrough in sustainable poverty reduction and new rural development programs. Thanks to the positive shifts in awareness and action by party committees, authorities and mass organizations, policy credit in Vo Nhai has not only grown rapidly but has also delivered tangible benefits, enabling disadvantaged households and ethnic minorities to improve production and living conditions.

With the strong support of the provincial leadership, VBSP staff have diligently implemented credit procedures to meet the needs of eligible beneficiaries promptly and effectively. Policy credit programs, alongside revised economic development strategies, have unlocked the agricultural and forestry potential of the province. From urban areas to rural villages in former resistance zones like Dinh Hoa, and especially in the most disadvantaged communes in Vo Nhai and Dai Tu districts, poor households and policy beneficiaries have accessed loans to enhance their livelihoods and stabilize their lives.

A Lever for Escaping Poverty

In Dinh Hoa District, many poor and near-poor households in remote and ethnic minority areas have used policy loans to establish productive models, such as breeding buffaloes and cattle, free-range poultry farming and cultivating clean tea gardens. These efforts have significantly boosted economic efficiency and stabilized incomes, allowing many to escape poverty.

For example, Ms. Nong Thi Thao’s family in Khang Thuong Hamlet, Binh Yen Commune, started with a VBSP loan of VND 50 million. Today, they own five plots of clean tea and four cattle, generating hundreds of millions of VND annually. Similarly, Mr. Duong Van Chuyen’s family in Hin Hamlet, Yen Do Commune, Phu Luong District, overcame poverty by expanding their agricultural and small business activities with policy loans.

In 2020, Mr. Chuyen established a 200-square-meter timber processing workshop to meet local demands. After getting out of poverty in 2021, his family continued to get an additional VND 100 million loan under the program for post-poor households. This preferential loan enabled him to expand storage facilities. Now, his workshop earns between VND 50 and 70 million monthly while employing six workers at an average salary of VND 6 million per month.

Mr. Chuyen shared: “This loan allowed us to grow our timber processing business and provide stable jobs for local residents”.

Hundreds of households in Yen Do Commune have similarly benefitted from VBSP loans, with total outstanding loans in the area exceeding VND 30 billion across over 700 borrowing households. This economic boost not only supports individual families but also helps the commune meet its poverty reduction and socio-economic development goals.

In Dong Hy District, the demand for loans among the poor, near-poor and post-poor households is significant. As of now, total outstanding loans in the district have reached VND 574.4 billion, an increase of VND 11.4 billion from the end of 2023, benefiting 12,472 borrowers. Effective use of these loans has made Dong Hy one of 12 districts nationwide with no overdue debt or frozen debt.

According to Ms. Le Thi Thu Ha, Head of the Labor, Invalids and Social Affairs Department of Dong Hy District, over the past three years, policy credit combined with other programs and policies, has reduced the number of poor households by more than 1,000. The district's poverty rate now is at 5.48% with a target to reduce it further by approximately 500 households by the end of the year.

Through synchronized efforts, Thai Nguyen continues to demonstrate how policy credit can serve as a crucial pillar for sustainable poverty reduction and comprehensive economic development.

Dong Du