Effective use of concessional loans from the Vietnam Bank for Social Policies (VBSP) has been seen as a "key” for poor households and policy beneficiaries in the mountainous district of Da Bac to improve income and better the quality of life towards sustainable poverty reduction.


An official from the Vietnam Bank for Social Policies’ Da Bac district branch studies capital demand from a Da Bac local. 


As the only impoverished district of Hoa Binh province, Da Bac has a great demand for this kind of loans. Over the past years, Da Bac is one of the localities with the highest amount of outstanding debt.

To date, total outstanding credit in the district has topped 546 billion VND (22.58 million USD), with nearly 14,000 customers. During January – October, 1,896 impoverished households and policy beneficiaries got access to some 75.5 billion VND in preferential loans, helping them develop business models to get out of poverty.

With 56.7 billion VND of concessional loans granted to more than 1,000 households, Tu Ly is the commune with the largest amount of outstanding credit in Da Bac district. From the outset of the year, 240 households in the commune have been able to take out loans from the VBSP.

According to an official from the communal People’s Committee, the loans have an important role to play in alleviating poverty and building new-style rural areas. Meanwhile, Vice Chairman of the People’s Committee of Hien Luong commune Xa Van Hoe described them as a locomotive for the residents to improve income, and help the commune meet the advanced standards of the new-style rural area building.

Xa Van Huy in Doi hamlet invested 100 million VND that he took from the bank in tens of fish cages. To date, the fish cage model has earned his family a stable income.

Statistics from Hien Luong commune showed that total outstanding credit in the commune has neared 22 billion VND so far. During January – October, the VBSP gave preferential loans to 116 households, helping generate jobs for 11 labourers and renovate and build 140 clean water facilities.

Director of the VBSP’s Da Bac district branch Nguyen Binh Nam said the bank will mobilise more resources to meet the capital demand of the local residents, contributing to realising the district’s socio-economic development and poverty reduction targets, and ensuring social security.


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