(HBO) – Over the past years, the credit programme for poor households has significantly contributed to poverty reduction and the implementation of the national target programme on sustainable poverty reduction in the northern mountainous province of Hoa Binh.


With preferential loans from the Vietnam Bank for Social Policies (VBSP), people in Toan Son commune, Da Bac district, Hoa Binh province, has invested in cow breeding.

 During 2002-2007, the province gave loans of more than 2.4 trillion VND to 217,370 households, with debt collection at over 1.6 trillion VND and outstanding debt exceeding 863 billion VND, making up 32.4 percent of total outstanding debt.

 At the end of March 2018, accumulated outstanding debt of the programme was more than 873 billion VND, with 33,018 households in debt, each with 26 million VND.

 To help eligible people access credit loans, improve the quality of credit loans and support the poor in the context of reduced management and social costs, the bank has launched entrusted loans via four social-political organisations.

 At the same time, transaction venues have been set up in 210 wards, communes and towns, which publicise preferential credit policies and address relevant procedures. More than 90 percent of transactions of the bank have been handled at these sites with the same quality as in the headquarters.

 Vu Dinh Hoai, Director of the bank’s provincial chapter, said the programme has opened up opportunities for poor households to access preferential loans, meeting their demands for capital for production and education while creating conditions for them to improve living standards and escape from poverty.

 Between 2002-2017, more than 90,000 households in the province escaped from poverty, and the rate of poor households dropped by 3 percent annually.

 It can be said that the credit programme has created a momentum for the poor households to develop economy and reduce poverty sustainably, he said.

 However, Hoai added that to make the best use of the loans, the localities should pay attention to vocational guidance, integrate agricultural and forestry programmes, encourage people to shift economic structure, effectively utilise local potential and strength, and accelerate poverty reduction./.

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