Policy credit contributes to sustainable socio-economic development in Bac Giang province

The efforts to reduce poverty and ensure sustainable social welfare in Bac Giang province have achieved impressive results with significant contributions from policy credit resource.

Policy credit has helped the people of Bac Giang develop production and improve their livelihoods

From 2021 to 2025, Bac Giang province aims to reduce the poverty rate by an average of 1% per year. So far, Bac Giang has consistently exceeded this target, achieving an average annual poverty reduction rate of 1.32% from 2021 to 2023. Notably, Son Dong District - one of the 64 poorest districts in the country - has reduced its poverty rate by an average of 5% per year between 2020 and 2023. In 2023, the district achieved a poverty reduction rate of 5.23%, surpassing its target of 4%.

Ms. Tong Thi Huong Giang - Vice Chairman of the Son Dong District People's Committee shared: "Prioritizing investments in policy credit resource has truly been a 'lever' to inspire the local people’s will to get out of poverty. The synchronized implementation of policies from the Party and State for sustainable poverty reduction, particularly Directive No. 40-CT/TW on enhancing the Party’s leadership over social policy credit has brought about significant progress in policy credit operations. These efforts have meaningfully contributed to economic and social development programs, sustainable poverty reduction and the construction of new rural areas in the province".

Mr. Ha Quoc Quan - Director of VBSP Bac Giang Provincial Branch said: "The branch has focused on mobilizing all resources and ensuring the timely disbursement of preferential credit to villages. This has facilitated easy and comprehensive access to VBSP services for impoverished households and disadvantaged ethnic minorities. Throughout its operations, the branch has received close guidance from local leaders. In particular, authorities from the provincial to grassroots levels have prioritized transferring budget capital to VBSP. This enables loans for poor households and other policy beneficiaries to develop production, create jobs and improve their livelihoods".

By the end of 2024, the branch's total capital is expected to reach VND 7,816 billion, an increase of VND 797 billion compared to 2023. The entrusted capital from the local budget exceeds VND 353 billion. The total outstanding policy credit loans by late 2024 would be VND 7,763 billion, an increase of VND 758 billion compared to 2023. Through 209 transaction points across 209 communes, wards and towns and a network of 3,114 Savings and Credit Groups in villages and neighborhoods with the motto "transacting at home, collecting loans at the commune", policy credit funds have supported over 30,000 poor households and other policy beneficiaries in developing production and business activities. These funds have created or maintained jobs for 5,365 workers, financed the construction and repair of 26,406 rural safe water and sanitation facilities, supported the building and renovation of 252 social housing units, enabled 118 policy beneficiaries to borrow funds for overseas labor contracts, helped 1,242 disadvantaged students cover educational expenses and provided 265 individuals reintegrating after serving prison sentences with the capital to develop businesses and create employment.

Residents receive preferential loan disbursements at commune transaction points

As a result, the province's poverty rate has decreased to 1.73%, a reduction of 0.9% compared to 2023. Additionally, 159 out of 182 communes have met the new rural development standards, marking the significant contributions of policy credit to Bac Giang's midland region. Thanks to an organizational model well-suited to an extensive network, 100% of poor households and other eligible policy beneficiaries with needs have been able to access preferential credit policies to invest in production, escape poverty and improve their lives.

For instance, Ms. Do Thi Hien’s family (a near-poor household in An Ha village, Tuan Dao commune, Son Dong district) began with a VND 50 million loan under the poverty reduction program. She decided to join a reforestation project and now has over 2,000 acacia trees on 1.3 hectares. Her life has been improved. In 2023, she voluntarily requested to leave the list of poor households.

Similarly, Ms. Nguyen Thi Hong’s family (in Cam village, Luong Phong commune, Hiep Hoa district) and Mr. Ha Van Huy’s family (in Dong village, Doan Bai commune, Hiep Hoa district) utilized policy credit loans to open workshops for crafting wooden furniture and raise reproductive cattle. They got out of poverty and built spacious new house.

In the coming period, the provincial branch will continue implementing Directive No. 39-CT/TW, dated October 30, 2024, issued by the Secretariat on enhancing the effectiveness of policy credit in the new era. This effort will meaningfully contribute to Bac Giang’s comprehensive and robust development in the northern midland and mountainous region.

Ngoc Canh – Dieu Minh