Tiếng việt
Stay Connected:

News & Events

Updated: 2021-04-15 15:26:38

Policy credit programs support poor households to escape from the poverty

(VBSP News) Nowadays, the policy credit capital has become popular, ‘covering’ up to 100% of communes, wards, and villages nationwide. In which, remote and extremely difficult areas are in the center of attention.

The rural safe water facilities of minor ethnic groups are constructed from the policy capital

Almost all the minor ethnic people are benefited from the social policies. Several households borrow capital from two to three policy credit programs to develop their business, enhance their living standard and escape from poverty. The case of Ho Thi Danh - K Dong ethnic group at no.2 hamlet, Tra Doc commune, Bac Tra My district - is a typical example. In the 2010 - 2011 period, Danh invested VND 25 million, borrowing from VBSP, to plant acacia. After 4 years of planting, she not only has repaid the loans but also invested in raising pigs. In 2018, Danh escaped from poverty thanks to the policy credit loans. Danh shares that without the loans, she was unable to do her own business. She also feels lucky to be propaganda the VBSP’s credit by the local Woman Union in 2007.

In fact, the policy credit loans have tackled the basic and essential problems in ethnic minority areas, besides supporting local people to enhance their living standards, reduce disease, illiteracy and social crimes. Ethnic minorities approach the capital to do their business, create jobs, gradually improve their business and management skills. Hence, they will escape from poverty, contribute to preventing usury in their rural areas. It is reported that there are 1.4 million customers who belong to ethnic groups, benefited almost all the policy credit programs. The total outstanding loans reached VND 56,000 billion approximately, accounted for 24.8%. The ethnic minorities’ average debt in a year is VND 39.3 million per household, compares with VND 35 million/household/year of the national average.

The outstanding loans reached VND 114,662 billion, which constitutes 50.7% of the total debts in VBSP's policy credit programs. There are 3.9 million loans from 3.1 million customers. In addition, the average outstanding loans per commune are VND 21.7 billion. The data show that the policy credit programs have achieved practical results, contributing to sustainable poverty reduction, socio-economic development, besides stabilizing the political security of the local areas. These programs also play important roles in ensuring social security in ethnic, mountainous areas, especially in a border and difficult areas. It supports locals to believe in the leadership of the Party, the Stat to jointly develop the country.

In the past 20 years, a growing number of ethnic groups have escaped from poverty, improved their life significantly thanks to the policy credit programs. The programs have supported more than 2 million households to overcome poverty; created jobs for 165,000 laborers. Additionally, over 211,000 ethnic students under difficult circumstances are able to approach loans to continue their studies. Through these programs, 1.4 million rural safe water supplies and sanitation, as well as 216.000 houses for the poor were constructed.

Head of the Department of Policies on Ethnic Minorities, Mr. Hoang Van Tuyen stated that the significant growth of outstanding loans shows the prevalence of credit capital in ethnic areas. Thereby, the loans will support local people the internal strengths to gradually escape from poverty, improve their lives and develop the economy. Although the credit is extended, it still of high quality. The overdue rate always maintains below 2%, which means that the ability of the ethnic minorities to use capital is relatively effective, the loans are always repaid on time.

The Head of the Department of Policies on Ethnic Minorities proposes to the government to consider and approve the National program on socio-economic development for ethnic minorities 2021-2030 period and promulgated the Decree about policy credit to ensure efficiency. Accordingly, it will be clearly specified the policy credit capital, funded from the state budget, so that VBSP is able to actively implement policy credit programs for ethnic groups, contributing to the successful implementation of the National Target program.

Chairman of the Committee for Ethnic Affairs, Ha Ngoc Chien commented that despite the strong development of socio-economic in the ethnic and mountainous areas, it is still considered as the most difficult area. In the period of 2021 - 2030, it is necessary to pay more attention to policies that focused on socio-economic development for ethnic minorities and mountainous areas, including policy credit programs.

At the same time, it is requested that the Committees of the National Assembly, relevant ministries, and organizations in the public investment plan for the period 2021 - 2025 allocate capital from the State budget to perform the National Target Program, approved by the National Assembly in Resolution No. 120/2020 / QH14. In the next period, there should be improvements and expansions in the direction of quota, target customers, thereby creating sustainable livelihoods for ethnic minorities.






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