Preferential capital opens the way out of poverty and strives to become rich

In the past, many poor households and ethnic minority households in rural areas in the mountainous district of Thanh Son encountered obstacles and had difficulty finding economic development directions due to lack of capital, but now things are different. Poor households, near-poor households, newly escaped poverty households, production and business households... have received regular attention from local authorities, including "support" through policy credit loans. From that support, it has actively contributed to encouraging and motivating people to dare to think and dare to do, invest in economic development to escape poverty, and even get rich right on their homeland.

Staff of the Transaction Office of the Social Policy Bank of Thanh Son district guide people through loan procedures.

Among the success stories from preferential loans, Mr. Nguyen Viet Phu in Group 4, Tan Thanh area, Thanh Son town is a typical example when he boldly invested in production development, bringing high economic efficiency. Having opened a carpentry workshop for 16 years, but before, Mr. Phu's family only produced on a small scale, mainly supplying some household items: simple beds, cabinets, tables and chairs, so the income was unstable.

Realizing the potential of carpentry in meeting the increasing demand for furniture, he decided to cooperate with a household in the area to expand production, but lacked capital. In early 2024, with advice and support from the local government, Mr. Phu was able to access a loan of 100 million VND from the Employment Credit Program of the Social Policy Bank (SPB) Transaction Office in Thanh Son District.

With this money, he invested in purchasing modern machinery: vertical milling machines, slitting machines, flange machines, planing machines... to replace the previous low-productivity manual methods. Mr. Phu confided: “At first, I was also worried because I had never borrowed such a large amount of money. But thanks to the dedicated guidance of the credit officer, I used the capital for the right purpose and effectively. With the support of modern machinery, work productivity increased 3-4 times compared to the previous manual work.

Therefore, the workshop's wooden products are not only supplied to families but can also be produced on a large scale according to orders from agencies, units and businesses with diverse designs and high quality. From this carpentry workshop, after deducting expenses, I earn a profit of 1.2 billion VND each year." Not stopping there, he also creates stable jobs for 3 local workers with an average income of 10 million VND/month.

In recent years, preferential credit capital from the Vietnam Bank for Social Policies has not only been a financial support tool but also an important driving force to help people in Thanh Son district change their mindset and boldly invest in production and business. With simple procedures, low interest rates and enthusiastic support from entrusted organizations, this preferential capital has reached the right people in need, helping them exploit the available potential of the locality. From livestock, farming to small-scale handicrafts, preferential credit has opened up opportunities for hundreds of households to escape poverty and stabilize their lives.

According to statistics from the Thanh Son District Social Policy Bank Transaction Office, by the end of the first quarter of 2025, the total outstanding policy credit balance in the district was 765.5 billion VND with 13,052 poor households and other policy beneficiaries still having outstanding loans. Loan programs with high outstanding loans include: Loans for poor households, near-poor households, and newly escaped poverty households; clean water supply and rural environmental sanitation; households doing business in difficult areas... These figures are clear evidence of the effectiveness of preferential credit policies, contributing not only to poverty reduction but also to promoting the socio-economic development of the district.

After receiving preferential loans, Mr. Nguyen Viet Phu in Tan Thanh area, Thanh Son town invested in purchasing modern machinery, contributing to increasing labor productivity, raising income, and becoming rich.

Comrade Bui Duc Thang - Director of the Transaction Office of the Social Policy Bank of Thanh Son District said: "The unit always closely follows the direction and management of authorities at all levels in making efforts to promptly disburse preferential capital to poor households and other policy beneficiaries in the area. Thanks to the proper use of capital, preferential capital has been and is being effective, helping thousands of poor households in the district gradually overcome difficulties."

According to statistics, from 2020 to now, the whole district has had over 4,000 poor and near-poor households escape poverty thanks to policy capital. Contributing to achieving the above results is the active participation of socio-political organizations in receiving the trust from the VBSP to manage 398 savings and loan groups.

Through participation and supervision of the public and transparent implementation of the use of State resources for poverty reduction goals by socio-political organizations, it has contributed to improving the quality of policy credit, promoting socio-economic development, and ensuring the goal of sustainable poverty reduction.

The story of Nguyen Viet Phu and hundreds of other households in Thanh Son district has proven that, when given timely support, people in the mountainous areas can absolutely strive to rise up. Preferential credit capital is not only a "fishing rod" but also a driving force to help people build a brighter future, contributing to changing the socio-economic face of this land.

Hong Nhung

Source: https://baophutho.vn/von-uu-dai-mo-loi-thoat-ngheo-vuon-len-lam-giau-230772.htm