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Updated: 2024-06-03 14:01:22

Sustainable poverty reduction from policy credit source

Thuong Xuan is the 30th poor district of Vietnam with the population of over 90,000 people, including 3 ethnic groups Kinh, Thai and Muong. People's lives mainly rely on agricultural and forestry production; Socio-economic infrastructure is not synchronized, people's lives still face many difficulties, especially in remote and border areas. However, in recent years, people's lives have been changed thanks to the National Target Program for sustainable poverty reduction in period 2021 - 2025 and credit programs of VBSP, which have helped Thuong Xuan district (Thanh Hoa) effectively implement sustainable poverty reduction.


Kim Queen melon model applied high technology of Mr. Le Van Thanh's family (in Xuan Lap village, Xuan Duong commune) brings high economic efficiency

Following the credit officer of VBSP Thuong Xuan district, we visited the beef cattle farming model of Mr. Tran Van Tinh's family in Hong Ky village, Tho Thanh commune. Mr. Tinh excitedly said: "From 2020 onwards, my family has always been on the list of near-poor households in the commune. At the end of 2020, realizing that raising beef cattle brings economic efficiency, I built barns and bought cows to raise in captivity (in the form of buying skinny cows, then 2 - 3 months of fattening to sell). In early 2021, under the guidance of the Commune Farmers' Association, I borrowed VND 90 million from the loan program for near-poor households of VBSP Thuong Xuan district. With this capital, my family bought 5 more cows, combined with planting 7 acres of grass for livestock".

In order for the cows to grow well, Mr. Tinh's family paid special attention to care such as: feeding them on time, vaccinating them to prevent diseases, always keeping the barn clean and installing cool fans for the cows in the summer. His family earns nearly VND 200 million in profit each year. Currently, Mr. Tinh's family has got out of poverty. According to him, thanks to the loan from VBSP Thuong Xuan district, his family has the conditions to produce and raise livestock, have jobs and have a stable source of income, especially get out of sustainable poverty.

With a loan of VND 200 million from VBSP, in 2020, Mr. Le Van Thanh's family (in Tan Lap village, Xuan Duong commune) built a greenhouse to grow Kim Queen melons. To gain production knowledge, his family hired an engineer at Lam Son High-tech Research and Development Center Co., Ltd. (Tho Xuan district) to transfer scientific and technological advances on how to grow and care for melons.

Because of technical procedures, the Kim Queen melon grows well. Currently, each year his family grows 3 melon crops, sells about 25 tons of fruit, earning a profit of VND 350 million. In addition, his family grows baby melons, earning a profit of over VND 100 million each year. His family's Kim Queen melon and baby melon are displayed in supermarkets in Hanoi and Hung Yen with stable prices. Currently, his family has created regular jobs for 4 workers and 10 seasonal workers.

Mr. Do Hoai Nam - Director of VBSP Thuong Xuan District said: The unit has proactively participated in poverty reduction through focusing on mobilizing, promptly conveying preferential credit to the right beneficiaries. At the same time, in order to create a breakthrough in poverty reduction, the unit has innovated investment and credit granting methods; integrate the use of policy capital for loan recipients.

As of May 13, 2024, VBSP Thuong Xuan has deployed 16 credit programs and disbursed to over 11,268 poor, near-poor households and other policy beneficiaries with the total outstanding loan of nearly VND 636 billion.

With preferential loans, thousands of households in Thuong Xuan district have invested in production and business effectively, rising out of poverty sustainably, significantly narrowing the gap between rich and poor, reducing the unemployment rate, completing the criteria for building new rural areas and playing an important role in stabilizing and developing the local economy.

Mr. Cam Ba Kinh - Deputy Head of the Department of Labor, War Invalids and Social Affairs of Thuong Xuan district assessed: Policy credit has actively contributed to helping people proactively develop agricultural and forestry production. In addition, social policy credit activities have actively contributed to the implementation of the National Target Program on sustainable poverty reduction in period 2021 - 2025, contributing to reducing the rate of poor households in 2023 in the district to 15.13%.

In the coming time, Thuong Xuan district will continue to implement many policy credit programs for ethnic minorities, strengthen propaganda about the National Fund to create jobs for local people, contributing to reducing sustainable poverty, ensuring social security and striving to no longer be the poor district in 2025.

Khac Cong



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