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Updated: 2021-01-14 16:06:29

Nghe An province has maximized the effectiveness of the policy capital to alleviate poverty

(VBSP News) Economic development, alongside poverty reduction and social security are considered as long-term goals of Nghe An province through years. The entrusted capital from Nghe An province’s budget is given to VBSP each year to make sure that the policy beneficiaries, including poor and near poor households were able to approach. This policy capital has supported a growing number of households to invest in manufacturing business, as well as stable their life.

VBPS's policy credit programs become familiar with local people in Nghe An province

Nghe An is the largest province in Vietnam, which is subdivided into 21 subordinate administrative units. This province has a total population of nearly 3.2 million people, including approximately 1,9 million people in the working age. The minor ethnic groups in Nghe An have 466.137 people, which accounts for 15,2%  of the total population. In particular, Thai, Tho , Kho, Mu, Mong, O Du  are large ethnic groups in Nghe An.

There are 3 poor districts in Nghe An (Ky Son, Tuong Duong, Que Phong) which are listed in the investment policy of the government, according to the Government's Resolution 30a. Therein, Quy Chau district has a higher poverty rate, which is listed in the investment programme according to the Decision No. 293 of the Government (currently is Decision No. 275 QD-TTg). In addition, 94 villages and 193 hamlets dealing with extreme difficulties in ethnic minority are in the investment scope of Program 135. Besides, the seaboard area in Nghe An consists of 12 communes facing extreme hardship. In early 2020, the province's poverty rate is 4.11%, equivalent to 41,041 households, the rate of near-poor households is 7.35%, equivalent to 75,389 households.

Therefore, Nghe An province always focuses on implementing poverty reduction and socio-economic development programs.  In particular, the policy credit programs of VBSP which are delegated to socio-political organizations have played an important role in poverty eradication, meeting residence’s borrowing needs.

Until October 2020, the total outstanding loan of VBSP branch in Nghe An province was VND 2.357 billion, including VND 971,561 billion of poor and near-poor households. The preferential loans supported 52.688 poor-household and other policy beneficiaries to borrow the money, that the average outstanding loan reaches VND 48 million per household. The program has helped 20.671 poor and near poor-households in manufacturing, creating jobs for 2.115 workers. It also supported more than 4.000 students; 170 migrant workers; 12.937 households living in rural areas. Besides, there are about 28.975 rural safe water and sanitation; 1.550 houses are built according to Program 33; 5.708 households borrowed money to invest in the business and production.

In the past 10 years, VBSP branch in Nghe An province lent VND 20.309 billion with nearly 807 thousands of customers, an average loan of VND 25,2 million per customer. The debt collection of the credit program is VND 15.571 billion. Until 30/12/2020, the total outstanding loans of this branch reached VND 8.995 billion.

The effectiveness of the VBSP's loans have been shown through the implementation results to 209-thousands of poor households, 139.000 near-poor households and 52.200 newly escaped from poverty households. As a consequence, 116,2-thousands of families are able to approach the loans for their children for education. Thanks to the preferential loans, more than 22.000 labours have jobs; 4,2 thousands of workers have the ability for labour export; nearly 161 thousands of households are allowed to build safe water supply and sanitation; 26,7 thousands of houses are built for poor-household; approximately 62.000 households are able to borrow money to invest in the business and production. Almost poor households have raised awareness of poverty reduction significantly.

The policy capital was fully covered and met the needs of people in rural areas

Simultaneously, the policy credit capital also supports the province to reach its goals and improves the life standard of the local people. Until now, the total loans in rural communes have reached VND 5,452 billion, accounting for 61.5% of the total loans, with more than 171 thousand customers.

Vice-Chairman of the Nghe An provincial People's Committee - Mr Le Hong Vinh shares that the period from 2011 to 2015 witnessed the decrease of 10,76% poor-household rate. The percentage of multidimensional poor-household reduced from 12,1% to 4,11% from 2016 to 2020. Also, the rate of near-poor household dropped from 10,23% in 2015 to 7,57% in 2019. The policy credit programs are considered as the highlight of the implementation of poverty reduction, contributing to ensure social security, economic development and build new rural areas.




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