People in Pa Co commune, Mai Chau district, borrow capital from VBSP’s Hoa Binh branch to develop traditional brocade weaving craft.
According to Vice Chairman of the Pa Co communal People’s Committee Phang A Cha, preferential loans from the VBSP play a very important role in the work of hunger eradication and poverty reduction in the commune. Thanks to the loans, local people have developed their economy and increased their incomes, gradually eradicating hunger and poverty.
This is an important motivation to achieve two very difficult criteria of income and poverty reduction in building new-style rural areas. Pa Co is a particularly difficult highland commune of Mai Chau district, which is home to over 600 Mong households. So far, the commune has realised 14 out of the 19 criteria to be recognised as a new-style rural area.
In the past, like many other households in the village, Mua Y So’s in Cang hamlet, Pa Co commune, faced economic difficulties. Although they had a large area of land for production, for many years, her family’s income only relied on growing maize and cassava. Nearly 10 years ago, through the savings and loan group, the family boldly borrowed 50 million VND (over 2,000 USD) from the VBSP’s chapter in the locality to raise breeding cow.
In addition to So's family, over 420 households in Pa Co commune were provided with concessional loans from the bank. By the end of August 2024, the commune's total outstanding balance of policy credit programme topped 21.7 billion VND.
According to statistics from the Mai Chau district People's Committee, since 2025, over 24,000 poor households and other policy beneficiaries in the district have benefited from the district’s policy loan programme with a total of over 800 billion VND.
Many models of transformation, helping each other to do business, and overcome difficulties to become rich have been widely replicated. The policy credit programme has contributed to promoting sustainable poverty reduction and the new-style rural area building effort of the district. The rate of poor households in the district has decreased from 24.11% in 2015 to 17.14% in 2023. Eight out of the 16 communes have met the new rural standards.
Ha Trung Thao, Vice Chairman of Mai Chau district People's Committee, said implementing policy credit programmes is one of the key tasks that contribute to the annual poverty reduction programme and plan of the locality.
Therefore, the local Party committees and authorities have proactively directed the poverty reduction committees of communes to closely coordinate with the VBSP’s branch in Hoa Binh and socio-political organisations entrusted to focus on harmoniously implementing solutions to improve the quality of policy credit programmes.
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