Policy credit contributes to sustainable poverty reduction

With the determination “no one left behind” in the journey of poverty reduction, the social policy credit programs of the Party and the State are considered a deeply humanitarian initiative. These programs have become a highlight in implementing the national target program on poverty reduction, contributing to social security.

Ms. Le Thi Hang (standing) from Hoa Tien Commune, Hung Ha District, was able to establish three garment workshops thanks to policy credit support, creating jobs for nearly 300 workers

Policy Credit as a Leverage

Ms. Le Thi Hang initially built their livelihood in the South. Despite of hard working, she struggled many challenges to improve her financial situation. She decided to return to the North, earning a living by sewing face towels at home. When she found an opportunity to sew garments for export to the U.S. and South Korea, she were thrilled but faced significant challenges in funding sewing machines and setting up a workshop. At that crucial moment, VBSP provided her with preferential loans.

Ms. Hang shared: "The VND 120 million loan from VBSP gave our family the confidence to borrow additional funds and bring the garment trade to our locality. Starting with a small garment workshop in Hoa Tien, our family has now established TSC Garment Co., Ltd., expanding with two more workshops that provide jobs for nearly 300 workers, each earning between VND 7-15 million per month. Our company generates an average revenue of VND 3-4 billion per year. Without timely financial support, we would have missed the opportunity to create stable jobs and income for many others".

Ma. Nguyen Thi Vinh - Chairwoman of the Hoa Tien Women's Union stated that the union guarantees loans from VBSP for over 140 member families, with an outstanding loan balance exceeding VND 6 billion. This support has played a crucial role in helping many families develop their businesses and achieve prosperity.

Policy Funds Positively Impact Lives

Policy credit funds have become an integral part of life, significantly benefiting the poor. The mobilized policy funds, combined with local budget contributions and entrusted funds, have been promptly distributed to grassroots levels. This enables low-income individuals and policy beneficiaries to implement various economic development models such as organic vegetable farming, fruit cultivation, small-scale trade, livestock farming and handicrafts. As a result, they achieve stable incomes, with many households earning hundreds of millions or even billions of VND annually.

Party Policies: A Pillar of Support for Citizens

The Party and the State maintain a consistent policy of economic development alongside social progress and justice, ensuring that no one is left behind. On November 22, 2014, the Secretariat of the Party Central Committee issued Directive No. 40-CT/TW on strengthening the Party's leadership in social policy credit. This was followed by Conclusion No. 06-KL/TW on June 10, 2021, reinforcing the implementation of Directive No. 40-CT/TW. The Prime Minister also issued Decision No. 1630/QĐ-TTg, outlining an action plan to execute the Party's directives and conclusions. In response, the Provincial Party Standing Committee and the People's Committee have formulated implementation plans and allocated local entrusted funds through VBSP to ensure the timely rollout of social policy credit programs for citizens.

These directives demonstrate the Party and the State's commitment to supporting poor and near-poor households, as well as vulnerable groups, by granting them access to preferential loans to develop their businesses and get out of poverty.

Mr. Le Hai Vu - Deputy Director of VBSP Thai Bình Provincial Branch highlighted that both the central government and local authorities have consistently increased entrusted funds for VBSP over the years. The bank has effectively acted as a "bridge" to extend policy credit across the province. As of February 28, central government allocations to the province amounted to nearly VND 890 billion, with additional funding of over VND 720 billion from organizations, individuals and residents, along with VND 160 billion mobilized through Savings and Credit Groups. The total outstanding policy credit balance exceeded VND 4.9 trillion, reflecting a 3.01% increase since January 1, 2025, benefiting over 95,400 customers. Policy credit has served as a "lifeline," helping thousands of households get out of poverty, driving economic growth and ensuring social welfare. In 2024, the province's Gross Regional Domestic Product (GRDP) grew by 7.01%, while the poverty rate fell to 1.59%.

Ms. Nguyen Thi Ban (Lien An Do Commune, Dong Hung District) shared: "In 2021, my family took a loan of VND 40 million from VBSP without requiring collateral, and our current balance is VND 60 million. We invested in building a barn and purchasing breeding cows. So far, the cows have produced four calves. selling each calf generates tens of millions of VND, allowing us to rise above poverty. The loan process is very convenient, as bank officers come directly to the commune office to disburse funds, collect interest, and renew loans. The Savings and Credit Groups also assist us with paperwork. The Party and State policies have truly been a foundation for us to overcome poverty".

Enhancing the Effectiveness of Policy Credit

To achieve the goal of becoming a high-income socialist country by 2030, the Party Central Committee issued Directive No. 39-CT/TW on October 30, 2024, focusing on improving the effectiveness of social policy credit in the new era. The Provincial Party Standing Committee and the People's Committee have released implementation plans and directives for this policy. The Board of Directors of VBSP's provincial branch and district-level representatives have advised relevant authorities on expanding resource mobilization and loan accessibility for policy beneficiaries. They have coordinated different funding sources to increase loan amounts and extend repayment terms in alignment with local socio-economic development programs.

The directive also emphasizes timely debt recovery, streamlining documentation for efficient loan disbursement and enhancing the operational quality of Savings and Credit Groups and transaction points in communes, wards and towns.

Mr. Pham Van Thang - Director of VBSP Thai Binh Branch stated: "Following directives from higher authorities, our branch has implemented comprehensive measures to enhance the effectiveness of social policy credit. We aim to better meet the borrowing needs of policy beneficiaries, strengthen fund mobilization and ensure the efficient use of resources. We also focus on improving monitoring, supervising the implementation of preferential credit policies and enhancing service quality at commune transaction points. Moreover, we continuously train and upgrade the professional skills and ethical standards of our staff, improve financial products and services to serve customers better".

Hieu Nghia