Policy capital accompanies poverty reduction in Phan Lam

From the Government's preferential loans through the Social Policy Bank (SPB), hundreds of ethnic minority households in Phan Lam commune, Bac Binh district have been supported to eliminate hunger, reduce poverty and become rich.

Phan Lam is one of the most underdeveloped and disadvantaged highland communes in Bac Binh district. It has a large natural land area but little agricultural land due to the mountainous terrain and difficult transportation. Over 80% of the commune's population is Rac Lay ethnic group, the rest are K'Ho, Cham, Kinh, Nung, Hoa, Chau Ro, ChuRu, Chil, Tho, Giao. The population density is unevenly distributed, the educational level is low, and infrastructure is limited. The living standards of the people are still low, with an income of only about 36 million VND/person/year, and the rate of poor and near-poor households is nearly 40%. Therefore, bringing preferential credit capital to the people is difficult, and making the capital effective is even more difficult. However, with the investment attention of the State, for many years now, people have accessed loan sources, in which preferential loans from the Vietnam Bank for Social Policies are the driving force to develop production and push back poverty in this locality.

Trinh Thi Dinh's family, once a near-poor household, has now escaped poverty thanks to preferential loans from the Vietnam Bank for Social Policies.

A typical example is Mr. Huynh Van Dung's household, in self-governing group No. 6 of the commune, one of the poor and near-poor households in the group, facing difficulties due to lack of capital for economic development. In 2022, he was able to access preferential loans for poor households from the Vietnam Bank for Social Policies, with an amount of 50 million VND, his family invested in raising cows - a breed of cows grown in Binh Thuan that is familiar with the weather and climate. From the initial 3 cows purchased for 45 million VND, the herd has now grown to 4 cows.

Similarly, Trinh Thi Dinh's household in Self-governing Group No. 1, from a near-poor household, has now escaped poverty thanks to preferential loans from the Vietnam Bank for Social Policies. Five years ago, Ms. Dinh's household borrowed 30 million VND to invest in cows like Mr. Dung's household. From a pair of cows, they have now produced 3 calves, the total herd is now 5. Her family plans to sell one cow to build and repair the house and invest more in livestock and farming. With a hard-working nature and willingness to learn from experience in livestock farming, her family's herd of cows has developed very well. Every month, her family pays the bank interest on time, with no outstanding debt. With the hope that when the principal repayment deadline comes, they will be able to borrow again with a larger amount of money to continue investing in livestock and farming to become well-off.

Mr. Mang Nhu, Chairman of Phan Lam Commune People's Committee, said: In recent years, preferential credit capital has affirmed itself as a powerful "lever" of the Party and State in implementing the national target program on poverty reduction, job creation, ensuring social security and making positive contributions to socio-economic development in the area. Credit programs have well met the preferential capital needs of poor households and policy beneficiaries, thereby giving them the opportunity to rise up and change their lives. In order for people to effectively promote loan capital, Party committees and authorities at all levels have guided people on what to plant and what to raise and encouraged people to apply scientific and technical advances in production. The commune mobilizes people, especially poor households, to focus on converting crop and livestock structures such as developing cattle farming, growing citrus fruit trees, etc. Currently, the commune implements 12 policy credit programs with more than 380 poor and near-poor households and policy beneficiaries receiving loans, with a total outstanding loan balance of over 17 billion VND with 7 savings and loan groups. Of which, the credit program for poor and near-poor households, clean water and environmental sanitation, etc. has lent more than 560 million VND in the third quarter of 2023 alone.

It can be said that through policy loans, ethnic minorities in Phan Lam have been promoting and exploiting the strengths of the commune, bringing economic efficiency, stable income, improving living conditions, and gradually escaping poverty.

Source