Escaping poverty with policy capital

Wednesday, 22/11/2023 10:10
Thanks to preferential loans, many poor, near-poor households and other policy beneficiaries in the Central Highlands province of Gia Lai and Pleiku city in particular have the opportunity to expand production and increase income to improve their lives.
Thanks to the effective use of preferential loans, many poor households in Pleiku city have invested in production development. (Photo: VNA)

One of the typical examples is Wau village in Chu A commune, Pleiku city, where many poor households have escaped poverty thanks to this loan. Ms. Thom, a Ba Na ethnic minority household, recalled that in 2019, her family received a preferential loan of 30 million VND from the Vietnam Bank for Social Policies to buy cows. After 3 years of care, her family’s herd of cows has grown to 4 more cows. In 2022, she decided to sell 3 cows to pay off her debt, then continue to borrow another 50 million VND to buy more cows to raise. Currently, her family has escaped poverty and has a stable income.

“Thanks to preferential loans, I was able to buy breeding cows, improve garden land and grow grass to feed the cows. I also actively learn animal husbandry techniques from agricultural staff and other members to accumulate experience,” Ms. Thom added.

Many poor households in Pleiku city raise goats for economic development. (Photo: VNA)

Mr. Chu, in another poor Ba Na ethnic household in Wau village, shared that his family was previously a poor household in the commune, so they were given preferential loans of 30 million VND to renovate 2 acres of land to grow vegetables and do livestock. By 2023, his family has repaid the loan, then can continue to borrow another 50 million VND to expand production. This loan has created an opportunity for his family to continue expanding cow farming and vegetable growing and has an average annual income of about 80 million VND.

Head of the Savings and Loans Group of Wau Ksor Khien village said that in recent times, associations and unions of Chu A commune act as a bridge with VBSP in Gia Lai, helping local people borrow preferential capital to invest in production development and conversion of crops and livestock. After having capital, households try to do business and develop cow farming combined with vegetable growing to bring high economic efficiency.

Since 2014, Pleiku city has allocated 13 billion VND of entrusted budget capital through VBSP for preferential loans. In 2023 alone, the budget capital entrusted by Pleiku city through VBSP is 3 billion VND. By the end of 2023, the total outstanding debt of policy credit programs in Pleiku city is estimated to reach 360 billion VND, with 9,000 customers with outstanding balance.

Mr. Nguyen Trieu Quang, Deputy Director of the VBSP’s branch in Gia Lai, said that the unit has made efforts to realize all preferential credit programs to provide loans to 100% of poor and near-poor households. Along with that, the unit strengthens support for poor households, near-poor households and other policy beneficiaries to access credit programs suitable to customer’ needs and repayment ability.

Aiming to maintain and improve the achieved results, the program needs close coordination between all levels, branches, unions and communities in promoting, guiding, supporting and monitoring the use of loan capital./.

BTA

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