Mu Cang Chai effectively implements preferential credit policies

Once the most remote and disadvantaged area along the majestic Hoang Lien Son mountain of the former Yen Bai province (now Lao Cai province), Mu Cang Chai has now been “revitalized” with concrete roads connecting villages and communes, and increasingly improved living conditions. Preferential credit provided by VBSP has enabled thousands of households to access financial resources for economic development, becoming an effective tool to help this land thrive in the new era.

Aerial view of Khang A Chua’s homestay in De Thang Village

Successful Start-up With Preferential Credit

Visiting Mu Cang Chai, the working delegation of VBSP was deeply impressed by the magnificent natural landscape and the flourishing economic development models in the area. Our first stop was the “Big View” homestay model run by Khang A Chua in De Thang Village.

True to its name, the view here is truly “big” and “breathtaking.” It is perched atop what resembles a “thousand-layer cake” of terraced rice fields, surrounded by clouds and offering a 360-degree panorama of endless mountain ranges - a spectacular sight. A beautiful carpet of buckwheat flowers embraces the humble stilt house, making Big View not only a place to rest but also a captivating attraction for travelers seeking perfect check-in shots amid pristine nature.

Sharing his start-up journey, Khang A Chua said that he previously worked at various hotels and homestays. In 2021, he and his family decided to launch their own project. He started operating his homestay in 2022 with only one stilt house and two stilt-style guest rooms. A turning point came when he received a preferential loan of VND 100 million (approximately USD 4,000) from the VBSP Mu Cang Chai Transaction Office, along with support from his relatives. From a modest lodging facility, Big View has now expanded to include a large stilt house accommodating up to 30 guests and five small bungalows.

The homestay offers a nature-friendly setting and has become a favorite check-in spot for many visitors

Chua emotionally shared: “Thanks to VBSP’s preferential credit, my family has been able to build such a spacious and well-equipped facility like today. Bank and mass organizations’ officers have always supported our operations and accompanied us through every development stage, even during difficult times such as pandemics and natural disasters”.

With strong visibility on reputable Booking platforms and active engagement on social media, Big View has welcomed an increasing number of visitors, especially during the ripe rice season - considered a signature tourism highlight of Mu Cang Chai. His family now earns more than VND 300 million per year (approximately USD 12,000) after expenses. Chua hopes to continue receiving preferential policies in the coming time to further expand his business model.

Also a young man like Khang A Chua, Vang A Cong (born in 1994) from My Ang Tau Village has escaped poverty and become a well-off household thanks to his black chicken farming model, a specialty of the Mong people. Cong shared that he received his graduation diploma in June 2016. After becoming a livestock engineer, he returned to his hometown, determined to start his own business with a black chicken farm.

Starting a career based on the knowledge acquired at school was the most reasonable path for him. The reason he chose animal husbandry over crop cultivation was that, besides having relevant expertise, Cong observed that many people had already invested in crops, while livestock farming remained a promising yet largely untapped field in his locality.

VBSP Mu Cang Chai Transaction Office officers visit Vang A Cong’s black chicken farming model

In 2019, with a preferential loan of VND 50 million (approximately USD 2,000) from the VBSP Mu Cang Chai Transaction Office, Cong built a 120m² livestock facility with a covered roof, cement flooring, and a 1.8-meter-high wire fence. The farm is located near a stream and a convenient access road, making it easier to transport chickens and feed. Cong accepted living far from the residential area. He, his wife, and their two children have settled in a quiet and spacious place with cool, fresh air where 1,000 black chickens can be raised free-range. In 2022, his family continued to borrow an additional VND 50 million (approximately USD 2,000) to expand the flock and repair the farm.

Thanks to proper care, their black chickens now have firm and aromatic meat - highly favored by customers for its superior quality. The selling price reaches VND 130,000 per kilogram (about USD 5.20/kg). Every five months, Cong sells one flock, bringing in around VND 150 million (approximately USD 6,000) per cycle.

Although he has fully repaid his loans and now enjoys a stable income, his family has never forgotten the value of preferential credit that supported their very first step in starting a business. Without that financial support, it would have taken much longer for his family to have what they have today.
An Effective Tool for Poverty Reduction

According to Mr. Bui Van Hoa, Director of the VBSP Mu Cang Chai Transaction Office, by the end of October 2025, preferential credit programs have been effectively implemented and have achieved positive results, contributing to sustainable poverty reduction and social security in the locality. As of 31 October 2025, the total outstanding loans of all programs reached more than VND 501 billion (approximately USD 20 million), an increase of more than VND 18 billion - up 3.92% compared to the beginning of the year - achieving 98.8% of the assigned target.

Mr. Bui Van Hoa, Director of the VBSP Mu Cang Chai Transaction Office, along with staff, guiding local residents on loan procedures at the transaction point

During this period, the transaction office disbursed loans to 4,417 households belonging to the poor and other policy beneficiaries. Among them, there were 1,903 poor households, 269 near-poor households, 653 post-poor households, and 894 households engaged in production and business in disadvantaged areas.

Preferential credit has been effectively deployed, promptly meeting the capital needs of local residents for production and business development. Borrowing households have used the loans properly and efficiently, contributing to sustainable poverty reduction and the construction of new rural areas in the locality.

Regarding credit quality, as of 31 October 2025, total overdue and rescheduled loans amounted to VND 380 million (approximately USD 15,000), accounting for only 0.075% of total outstanding loans. Notably, the quality of policy credit operations in all six communes was rated Good. Mu Cang Chai has implemented 14 preferential credit programs across the communes. Policy credit has reached all 91 villages and 181 Savings and Loan Groups in the six communes, serving 7,569 borrowers.

These results affirm the efforts of the VBSP Mu Cang Chai Transaction Office in implementing synchronized, appropriate measures, mobilizing substantial capital, and fully meeting the timely loan demands of poor households and ethnic minority families.

At the same time, they highlight the attention and guidance of local Party Committees and authorities, who have decisively overseen the transfer of state budget funds to a single focal point - the VBSP - for proper use and management, while balancing local budget allocations entrusted through the VBSP to increase lending capacity for special policy beneficiaries in the area.

From remote highland villages in Mu Cang Chai, state preferential loans have facilitated 100% of poor households and disadvantaged ethnic minority families to access capital conveniently, enabling them to proactively develop production and business, escape poverty quickly, and achieve legitimate wealth right in their homeland.

Tung Duong