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Updated: 2024-05-10 16:15:38

Policy credit strengthens poverty reduction

Policy credit has created livelihoods to help the poor and near-poor households in Lao Cai province rise in life, playing an important role in reducing the rate of poor households, ensuring social security, promoting economic development in rural areas.


Preferential loans help many households in Viet Tien commune, Bao Yen district expand their mulberry growing and silkworm farming areas

Mr. Bach Van Tan's family (Giay ethnic group in Da Dinh 2 village, Ta Phoi commune, Lao Cai city) previously had a very difficult economic situation. In 2017, his family received a loan of VND 50 million from VBSP to raise fish and breeding pigs. Thanks to applying proper techniques and care, livestock farming developed well and his family paid off all their debts.

In 2022, he continued to take a loan from VBSP to expand the scale of livestock farming. Currently, his family has had 6 sows, nearly 50 pigs for meat, 3 ponds to raise fish. Each year, he sells 10 tons of pigs and 20 tons of commercial fish on average, earning a profit of more than VND 200 million per year. His family has a stable source of income in the village.

Mr. Nguyen Van Son's family (in Da Dinh 2 village) also has a stable life thanks to policy credit. Previously, despite his working hard, Mr. Son still faced many difficulties. He wanted to expand his business, but he did not have money. Since being guaranteed a loan of VND 200 million by the Commune Farmers' Association with preferential interest rates, his family has renovated ponds, water pipes; bought seeds and food to raise fish. Currently, his fish farming is developing well, generating a stable income of more than VND 300 million VND per year.

Currently, nearly 700 households in Ta Phoi commune have taken loans from VBSP with the total outstanding loan of more than VND 34 billion. Policy credit source has helped many households get out of poverty and improve their lives.

In Viet Tien commune, Bao Yen district, many households borrowed money to grow mulberries and raise silkworms. In 2022, Mr. Tran Xuan Thuy's family in Coc Khieng village borrowed VND 100 million from the district VBSP. He used the loan to expand the mulberry growing area, build a silkworm house and buy bamboo and seedlings. From the beginning of the year, Mr. Thuy has sold 2 batches of silkworms and 1 batch of newly hatched silkworms. For each generation, he raised 4 rounds of seed, earning more than VND 10 million.

In 2023, the entire Bao Yen district had more than 1,100 poor households receiving loans for economic development and getting out of sustainable poverty. To date, 87.2% of the poor and near-poor households in the district accessing to policy credit. More than 1,200 works of safe water and sanitation were built; more than 400 workers were created jobs, helping the poor households and other policy beneficiaries in the district stabilize their lives.

In 2023, more than 18,500 poor households took preferential loans with the total amount of more than VND 206 billion; more than 11,400 near-poor households borrowed money with the total of more than VND 123 billion for economic development; more than 15,000 loan customers were created jobs; more than 1,200 poor households received loans to build housing. In the first quarter of 2024, the effectiveness of policy credit has promoted, helping 3,289 poor households and other beneficiaries access to preferential credit. Of which, 617 poor households, 301 near-poor households and 160 post-poor households received loans for economic development.

Recently, VBSP Lao Cai Branch has coordinated with localities to promptly review poor and near-poor households in need of loans in order to create conditions for them to access and use loans quickly and effectively. Through direct transaction sessions, VBSP officers in districts propagated to raise awareness of the poor so that they do not rely on support from the State but actively do business effectively. The quality of credit for poor and near-poor households in the province is always guaranteed.

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Many households in Ta Phoi commune, Lao Cai city took loans for aquaculture development

Preferential credit has contributed to the effective implementation of national target programs on sustainable poverty reduction, new rural construction, socio-economic development and social security in the province. In 2023, the poverty reduction rate of the entire province is 4.43%, exceeding 10.75% of the plan (the 2023 plan is 4%).

Mr. Do Ngoc Long - Deputy Director of VBSP Lao Cai Branch said: In the coming time, the branch will focus on mobilizing capital to meet the capital needs of the poor households and other policy beneficiaries; actively mobilize deposits from the community; improve credit quality, especially the activities of Savings and Credit groups so that right beneficiaries receive preferential credit.

Kim Thoa



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