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Updated: 2019-09-17 11:29:59

Policy credit effect on the martial land

(VBSP News) The preferential loans from VBSP are increasingly spreading effectively in the land of "literature and martial arts" in Binh Dinh province. The credit capital has been contributing to changing the lives of many policy beneficiaries in the area, helping them strive to contribute to economic development in the locality.

Các phiên giao dịch lưu động giúp người dân tiết kiệm chi phí và thời gian đi lại

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Credit capital changes life

Ms. Nguyen Thi Tinh's family in Cat Tuong commune, Phu Cat district is one of the typical households who effectively use loans from VBSP. The family had 4 children, the husband worked as a bricklayer, Ms. Tinh's job was also unstable so the life was hard. In 2015, the couple decided to open a farm on an area of ​​5,000m² inherited from their grandparents.

In 2016, with the advice of the Women's Union, she boldly borrowed VND 20 million from VBSP to invest in building cages and buying breeding pigs. The business was favorable until the price of pigs plummeted due to the fluctuations of the market, leading to loss of capital. The whole family fell into difficult circumstances, seemingly depressed. Once again, the Women's Union encouraged the family to borrow an additional VND 50 million from VBSP to buy 2 crossbred breeding cows, combined with the model of raising pigs and chickens.

So far, the family has gradually stabilized production and had a pretty good income. By the end of 2018, Tinh's family earned more than VND 100 million from the farm. Recently, she borrowed VND 50 million more to continue to buy 2 hybrid cows. The family farm now has 8 crossbred cows; 120 porkers; 4 breeding sows, 40 broilers, bringing stable income.

Mrs. Tinh confided, having today achievements, besides the efforts of her family, there is great support from VBSP in providing her family with more capital to develop their business, increase their incomes and gradually step out of poverty sustainably.

Nguyen Thi Tinh's family is just one of thousands of households in Binh Dinh province who have escaped from poverty with capital of VBSP. Up to now, policy credit has spread to all communes, wards and towns in the province, focusing priority on the communes of ethnic minorities, disadvantaged areas, remote areas. 90% of policy loans is invested in agriculture, fishery, forestry, education and training. In the period of 2014 - 2019, together with the central budget and entrusted local budgets, VBSP disbursed policy credit capital to more than 190 thousand poor households, near-poor households and other policy beneficiaries.

Thereby, the preferential capital from VBSP has helped over 38,000 households to overcome the poverty line; more than 19 thousand households in disadvantaged areas borrowed capital to buy machinery and tools for production, business, fishing, seafood processing and expanding small scale handicraft facilities to promote local economic development; attracting and creating jobs for more than 12 thousand laborers; helping more than 1 thousand workers to work for a definite time in foreign countries; nearly 17,000 disadvantaged students borrow money to cover their study costs.

Vice Chairman of Binh Dinh People's Committee Nguyen Tan Thanh assessed that the effective implementation of policy credit programs has contributed significantly to local socio-economic development; effectively implementing the National Target Program on sustainable poverty reduction, new rural development, ensuring social security, political stability, national security and defense, human resource development and minimizing the impacts of climate change.

In particular, these efforts have contributed to reducing the percentage of poor households across the province according to the multi-dimensional poverty line in the early 2016-2020 period from 13.35% to 7.01% (at the end of 2018) and particularly, from 62.54% to 43.14% in three poor districts.

Mobilize capital into one source

Binh Dinh has well implemented mobilization of resources for policy credit associated with agricultural and rural development, education, vocational training, job creation, social security and sustainable poverty reduction. Specifically, the province has transferred all credit sources from the state budget into VBSP to implement social policy credit projects and ensure stable and sustainable operation of social policy credit activities; People's Councils and People's Committees at all levels also allocate part of local budget capital to supplement capital sources for lending to social policy beneficiaries in the area.

By the end of June 30, 2019, the total capital of VBSP Binh Dinh reached VND 3,667 billion, an increase of VND 1,395.5 billion compared to 2014; entrusted capital from local budget reached VND 115.5 billion dong, increased by VND 92 billion.

VBSP Binh Dinh province has also promoted collaborated lending with mass organizations in some steps of lending process. Officers in all communes have contributed to the propagation, review and lending; supervise loan usage; urge borrowers to pay debts and pay interests on time…

Vice Chairman of the Farmers Association of Binh Dinh province Do Thien Che said that consultancy and guidance was conducted through many channels and activities, ensuring the impact from many dismension, anytime, anywhere; through training courses, demonstration models, agricultural, forestry and fishery extension groups. Especially, the movement of successful business and production farmers has helped farmers to get higher income and rise out of poverty sustainably. This is considered the most effective channel in advising and guiding lending to members.

Mr. Le Kim Toan, Standing Deputy Secretary of Binh Dinh Provincial Party Committee affirmed that the Party committees and authorities at all levels will continue to promote the achieved results, overcome the shortcomings, difficulties and create the most favorable conditions for the operations of VBSP in the province to convey preferential credit capital to the right beneficiaries contributing to building a rich and charming Binh Dinh province.

Currently, VBSP Binh Dinh is managing and implementing 19 policy credit programs. By the end of June 30, 2019, the total outstanding loans for policy credit programs reached VND 3,660 billion, an increase of VND 1,390 billion compared to the end of 2014 with over 91 thousand borrowing poor households and policy beneficiaries. The average loan balance reached VND 40 million / household, an increase of VND 16 million. From the beginning of 2014 until now, the total loan reached VND 5,999 billion, with more than 190 thousand turns of poor households, near-poor households and other policy beneficiaries receiving loans.


Nghi Loc



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