(HBO) – At the end of 2018, the rate of the poor households in the north-western mountainous province of Hoa Binh is estimated at 14.74 percent, down 3.1 percent year-on-year. The result has reflected the efficiency of preferential loans for the poor.


Xa Van Hoan, a man of the Tay ethnic minority group in Phu Son hamlet, Cao Son commune, Da Bac district said before accessing the loans, his family had been in the list of especially poor households in the commune. In 2012, his family was eligible to get a loan worth 20 million VND from a programme that supports poor households and another loan worth 8 million VND from the Vietnam Bank for Social Policies (VBSP)’ Da Bac district branch under a programme supporting ethnic minority households in special difficulties. With the money borrowed, his family bought two buffalos that gave birth to two calves after nearly one year. In 2015 Hoan’s family paid back the due debt and borrowed another 30 million VND to invest in animal husbandry. Currently, his family has five buffaloes.



With preferential loans from the VBSP, poor households in Cao Son commune (Da Bac district) have invested in buffalo breeding, gradually getting rid of poverty and stabilising their lives.  
 
Hoan’s family is one of the more than 90,000 others in the province which have surpassed the poverty line after 15 years since the preferential loans were offered in the province. 

As of late November, 9,582 households had accessed loans totaling over 303 billion VND, with more than 256 billion VND already paid back. Total loan outstanding balance exceeded 922 billion VND, with 31,851 debtors. 

Local Party committees and authorities need to pay more attention to vocational training and agriculture and forestry expansion in order to optimise the preferential loans, helping accelerate poverty reduction in the province.

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