Policy Credit: A Lifeline for Poverty Reduction in An Giang's Border and Coastal Areas

(VBSP News) After the implementation of the two-tier local government model, An Giang province has entered a broader development landscape, stretching from its border to coastal and insular areas. In this new context, policy credit continues to serve as a vital source of social welfare capital, providing poor households and other policy beneficiaries with essential financial support to develop sustainable livelihoods and improve their living standard.

Policy credit has enabled many poor households in Vietnam's southwestern region to overcome poverty, build sustainable livelihoods, and improve their economic well-being

A Strong Foundation for Sustainable Poverty Reduction

The merged An Giang province has become the largest province in Vietnam’s Mekong Delta, covering more than 9,888 km² and home to nearly five million people. The province comprises 102 commune-level administrative units, including 85 communes, 14 wards, and three special administrative zones: Phu Quoc, Tho Chau, and Kien Hai. Its expanded development space encompasses the region's diverse landscape, from plains and mountainous areas to coastal and island communities, creating favorable conditions for diversified economic growth. While these advantages offer significant development potential, they also present challenges in implementing social welfare policies, particularly in remote areas where production and business conditions remain limited.

Against this backdrop, VBSP's policy credit plays an especially important role. Beyond providing preferential loans, it serves as an effective policy instrument through which the Government supports disadvantaged households in expanding production, creating jobs, improving living standards, and ultimately escaping poverty through their own efforts.

Thanks to the synchronized implementation of poverty reduction policies, together with the support of development partners and the dedicated efforts of VBSP, the multidimensional poverty rate in An Giang Province has fallen to 1.27%, with approximately 12,736 poor households and 24,687 near-poor households remaining. Among ethnic minority communities, the poverty rate has declined to 2.9%.

Mr. Le Van Phuoc, Vice Chairman of the Provincial People's Committee cum Head of Representative Committee of the VBSP Board of Directors emphasized that the province's poverty reduction achievements vividly demonstrate the effectiveness of mobilizing resources and prioritizing State-funded preferential credit. According to him, policy credit is not merely a financial instrument but a key driver of sustainable poverty reduction.

As of 30 June 2026, the total capital of VBSP An Giang Branch was estimated at VND 15.093 trillion (approximately USD 603.7 million), an increase of more than VND 2.1 billion (approximately USD 84,000) compared with 2025. Of this amount, nearly VND 1.890 trillion (approximately USD 75.6 million) came from funds delivered by the local government budget, achieving 166.67% of the branch's 2026 growth target. Outstanding loans under the branch's 21 policy credit programs totaled nearly VND 14.985 trillion (approximately USD 599.4 million), fulfilling more than 90% of the assigned annual target. The branch was serving 306,673 borrowers, with an average outstanding loan balance of VND 48.86 million (approximately USD 1,954) per borrower.

VBSP staff provide hands-on guidance to borrowers on effectively using policy credit to expand production and business activities

All preferential credit has been delivered promptly and safely through 298 Transaction Points across 102 communes, wards, and special administrative zones, enabling direct lending to poor households and ethnic minority families throughout the province. State policy credit has reached even the most remote communities, providing disadvantaged people with the financial resources and confidence to transform their lives. In Tri Ton, a border commune along the Vietnam-Cambodia frontier, access to preferential loans from the VBSP Tri Ton Transaction Office has enabled local residents to diversify their livelihoods, adopt intensive farming practices, expand livestock production, and preserve traditional handicrafts.

According to Mr. Tran Van Cuong, Chairman of the Tri Ton Commune People's Committee: “Policy credit has helped local people gradually improve their living standards and build a brighter future. More importantly, it has enabled the commune to become a model of sustainable poverty reduction in the mountainous border area, with the poverty rate declining to just 3% and average annual per capita income reaching nearly VND 70 million (approximately USD 2,800)”.

Another example can be found in Quarter 4 of Rach Gia Ward, where the story of Ms. Tran Bich Phuong vividly illustrates the impact of policy credit. Although owning farmland but lack of investment capital, her family fell in poverty for years. With guidance from the local Women's Union and a preferential loan from VBSP, she converted her underutilized garden into vegetable plots producing clean, market-oriented vegetables. The model now generates a stable monthly income of more than VND 8 million (approximately USD 320), significantly improving her family's livelihood.

Similarly, Ms. Truong Bich Thuy, a resident of Quarter 2 in Vinh Thong Ward, used a loan under the Job Creation Program to rehabilitate ponds and cultivate lotus for seeds and cut flowers, creating a stable source of income for her family. “Thanks to VBSP's policy loan, my family has been able to invest in production and take greater initiative in developing our livelihood. Lotus cultivation has not only increased our income but also made effective use of the land we already have”, she said.

These examples demonstrate that, although individual loan amounts may not be large, policy credit serves as a powerful catalyst for change. It empowers disadvantaged households to transform their mindset, strengthen self-reliance, and pursue sustainable economic development.

The success stories emerging from disadvantaged communities highlight the profound value of these modest loans. Preferential credit provides the initial momentum that encourages poor households to invest in their own future. When borrowers carefully select livelihood models suited to local conditions, available labor, traditional production practices, and market demand, policy credit becomes seed capital for building sustainable livelihoods.

Keeping the Flow of Policy Credit Strong and Uninterrupted

VBSP An Giang Branch maintains an efficient network of Transaction Points, ensuring convenient and uninterrupted services for local people

Mr. Doan Cong Thiet, Director of VBSP An Giang Branch, said: “After merging of provinces, the branch has focused on mobilizing financial resources and ensuring that policy credit is delivered promptly and safely to villages, residential communities, and directly to poor households and other policy beneficiaries. Maintaining operations at our Transaction Points and regular transaction sessions has brought significant convenience to local people by reducing travel time and costs, while enhancing the transparency and accountability of the Government's policy credit programs. These Transaction Points serve not only as venues for loan disbursement, debt collection, interest payments, and savings deposits, but also as important channels for disseminating new policies, assisting borrowers with loan applications, and responding to their inquiries.

Especially, the Savings and Credit Groups have become an effective extension of VBSP's service network at the village and neighborhood levels. They play an important role in bringing borrowers together, encouraging the proper use of loan capital, and reminding borrowers to repay principal and interest in accordance with regulations.

Looking ahead, VBSP An Giang Branch aims to further expand its capital base and outstanding policy credit portfolio while ensuring the uninterrupted flow of policy credit to communities. The branch will continue to maintain people-centered services that are accessible, responsive, and effective. At the same time, it will accelerate the application of digital technologies in credit management, the operation of Savings and Credit Groups, and customer services. The branch will also continue to effectively implement Directive No. 39-CT/TW of the Secretariat on enhancing the quality of policy credit in the new development period, reaffirming policy credit as a key driver of sustainable poverty reduction and social security in the border and insular areas of southwestern An Giang Province.