Policy credit – The “midwife” of poverty reduction

The “midwife” of poverty reduction

In Ben Cau Commune (Tay Ninh), many households have achieved stable livelihoods thanks to policy credit loans.

Pham Ngoc Hue, a resident of Xom Lo Hamlet, shared: “My family was classified as disadvantaged. In 2024, I was introduced by the Women’s Union to borrow 50 million VND from the Bank for Social Policies to run a grocery business. The profit from trading has helped us cover living expenses, support my child’s university education, and secure stable employment.”

Similarly, Pham Thi Men, also from Xom Lo Hamlet, borrowed 50 million VND from the employment creation fund to invest in breeding cows. From the initial two cows, her herd has now grown to five.

Meanwhile, Doan Thi Be from Thuan Hoa Hamlet used her 50 million VND loan to buy two cows, which have since multiplied to five, generating a sustainable income source.

Ho Vo Thai Binh, Chairman of the Ben Cau Communal People Committee said: “Currently, 5,712 households in the locality are borrowing capital for production development, with total outstanding loans exceeding 258 billion VND. To make access easier, the bank assigns transaction officers to Tien Thuan Commune, Thuan Tam Hamlet Cultural House and Ben Hamlet according to a fixed schedule, while publicly posting guidance documents. The commune police also cooperate to ensure security and order during loan disbursement, interest collection and debt repayment.”

Nguyen Vo Nhat Duy An, Director of the Transaction Office of the Ben Cau Communal Bank for Social Policies, said that after administrative restructuring, the office has maintained 10 transaction points and 250 savings and credit groups. Borrowers’ information has been updated according to the new commune boundaries without requiring re-registration. The total outstanding loans have reached over 508 billion VND, covering more than 11,400 households, with an average of over 169 billion VND per commune.

Policy credit capital has accompanied the people’s determination to escape poverty, enabling many households to move beyond reliance on assistance and take the initiative in investing in production and business. This has become a driving force that fosters self-reliance and resilience, gradually improving living standards and contributing to local economic development.

No one left behind

According to the Tay Ninh Branch of the Bank for Social Policies, from 2021 to August 31, 2025, more than 405,000 borrowers in the province accessed loans, with total lending reaching over 16 trillion VND. Currently, more than 245,000 customers still have outstanding loans totalling over 11.7 trillion VND — an increase of more than 5.3 trillion VND compared with the beginning of the term.

Nearly 105,000 workers have borrowed capital for job creation and income improvement; over 24,000 poor and near-poor households have accessed loans for production; more than 30,000 disadvantaged students have received study loans; over 150,000 households have borrowed to build 280,000 clean water and sanitation facilities; and more than 750 poor and policy households have been supported to build, repair or purchase social housing to settle down and start their careers.

Pham Tan Hoa, Vice Chairman of the Tay Ninh Provincial People’s Committee, affirmed that policy credit activities have promptly met the capital needs of the people, particularly low-income households. They have proved to be an effective tool for sustainable poverty reduction, job creation, curbing illegal lending, ensuring social welfare, maintaining political and security stability, and promoting local economic growth.

To enhance effectiveness, the provincial people’s committee has directed the branch of the Bank for Social Policies to strictly implement Directive No. 39-CT/TW, Directive No. 34-CT/TW, along with relevant plans and resolutions on the development of policy credit. Accordingly, the bank is to accelerate the disbursement of delayed programmes, particularly social housing loans; arrange transaction points appropriately according to the new administrative boundaries; strengthen capital mobilisation; improve credit quality and control overdue debts; while closely coordinating with socio-political organisations in entrusted lending to ensure accurate beneficiary selection and promptly address borrowers’ difficulties.

Policy credit has truly become a “means of livelihood” for poor, near-poor and policy households. Students have gained more opportunities to pursue education, while rural residents have better conditions for production and improved living standards. This is truly a “bright spot” and one of the key “pillars” of the social welfare system, contributing to building an increasingly prosperous and civilised Tay Ninh.

Link to the original article