Supporting disadvantaged individuals in rebuilding their lives

Preferential credit sources are serving as a “fishing rod”, enabling ex-offenders in Lam Dong Province to develop their livelihoods, overcome stigma, and create sustainable opportunities for reintegration into the community.

VBSP officers, in coordination with commune police, encourage ex-offenders to access preferential credit to invest in production and business activities

Overcoming Stigma and Self-doubt

After completing her prison sentence in 2021, Ms. Bui Thi Thanh Phuong in Dam Rong 2 Commune returned to her family. Facing difficult circumstances, she struggled to make a living; even with a small grocery business, her income was only enough to cover basic needs. “I truly wanted to rebuild my life and develop my family’s economy. However, due to stigma and, more importantly, lack of capital, I felt extremely anxious and uncertain at that time”, she shared.

By the end of 2023, following the issuance of Decision No. 22/2023/QD-TTg by the Prime Minister on credit for ex-offenders, and with the support of relevant authorities, Ms. Phuong accessed a loan of VND 100 million (approximately USD 4,000) from VBSP to invest in a sturgeon farming model. To date, she has developed eight ponds with 5,000 juvenile sturgeons.

To ensure policy credit reaches the right beneficiaries and maximizes livelihood effectiveness, VBSP implements a rigorous screening process. This is the result of multi-sectoral coordination among the police, local authorities, and entrusted mass organizations. Borrowers are required to develop specific production and business plans, which are appraised by Savings and Credit Groups to ensure credibility. Loan disbursement and supervision of fund utilization are conducted in a strict and transparent manner.

In Krong No Commune, after completing her sentence in 2024, Ms. Le Thi Yen was facilitated to access a loan of VND 90 million (approximately USD 3,600) to invest in fertilizers and coffee seedlings. She shared: “Currently, our family’s coffee plantation is growing well and generates over VND 200 million (approximately USD 8,000) per year. I am truly grateful for this policy and the support from the authorities”.

Community Reintegration

According to Ms. Nguyen Thi Ngoc Thu, Director of the VBSP Lam Dong Provincial Branch, in addition to centrally allocated funding, the Provincial People’s Committee has supplemented VND 12 billion (approximately USD 480,000) from the local budget for preferential lending. This funding source has enabled many ex-offenders to access credit to develop livelihoods and reintegrate into the community.

Mr. Truong Van Sang, Chairman of the People’s Committee of Dam Rong 2 Commune, noted that Decision No. 22 serves as a strong motivation for beneficiaries to change their mindset, actively engage in production, and comply with local regulations. However, some ex-offenders still experience psychological barriers such as stigma and low self-esteem, leading them to leave their locality for work or hesitate to access loans for production and business activities. In addition, the current unsecured loan ceiling of VND 100 million (approximately USD 4,000) remains relatively low compared to actual investment needs in the locality.

To further enhance the effective implementation of Decision No. 22, the VBSP Lam Dong Provincial Branch will continue strengthening coordination with the police, local authorities, and mass organizations in identifying demand, guiding loan application procedures, and supervising fund utilization. Relevant stakeholders will regularly review borrowing needs, provide timely guidance and support in completing loan documentation, and organize disbursement for eligible beneficiaries, ensuring compliance with target groups, policies, and procedures. Functional agencies will also intensify supervision and provide ongoing support to ensure loans are used for intended purposes.

After more than two years of implementing Decision No. 22, with the concerted efforts of the entire political system from provincial to grassroots levels, Lam Dong Province has provided preferential loans to 649 ex-offenders and their household members, with total outstanding loans reaching nearly VND 60 billion (approximately USD 2.4 million).

Ngoc Nga