'Support' from policy-based funding

In the historic transition to officially operating a two-tiered local government system, policy capital flows remain steadfastly directed towards the grassroots, reaching even the poorest households and vulnerable groups. With the motto "close to the people," the Thai Nguyen branch of the Social Policy Bank continues to expand its transaction network, ensuring that every preferential loan becomes a solid foundation for sustainable poverty reduction.

Officials from the Social Policy Bank branch in Thai Nguyen province collaborated to inspect the effectiveness of using policy credit funds for fruit tree cultivation development in Phuc Thuan ward.

Increase transaction points, expand trust services.

Mr. Pham Tuan Hung, Director of the Social Policy Bank (SPB) branch in Thai Nguyen province, emphasized: "In the context of the local government apparatus shifting to a two-tier model, the requirement for us is to streamline the organization while ensuring that capital flows to the right recipients, promptly and transparently."

Maintaining 273 transaction points, opening an additional Bac Kan branch office, and expanding entrusted funds through socio-political organizations not only facilitates access for the people but also affirms the commitment that "policy capital must truly be a support for poor households and vulnerable groups."

Accordingly, the Branch proactively coordinated with relevant departments and agencies to advise the Provincial People's Committee on supplementing capital and perfecting the preferential lending mechanism according to Resolution 111/2024/QH15; at the same time, it signed joint agreements with 4 socio-political organizations, received additional credit projects from the Women's Union, and expanded the entrusted network. Currently, socio-political organizations provide entrusted services with a total outstanding loan balance of over 8,800 billion VND, accounting for nearly 99% of the total outstanding loan balance of the Vietnam Bank for Social Policies (VBSP).

To verify the effectiveness of policy credit, Pham Tuan Hung, Director of the Vietnam Bank for Social Policies (VBSP) branch in Thai Nguyen province, personally surveyed many transaction points, including the Pác Nặm VBSP Transaction Office - where outstanding loans have exceeded 384 billion VND, with more than 5,000 customers, an increase of 11.7 billion VND compared to the end of 2024.

Notably, up to 95.5% of the funds are entrusted through socio-political organizations, ensuring that the capital reaches the right recipients, is transparent, and that every policy-based dollar is used for its intended purpose, becoming the "key" to helping households increase their income, stabilize their lives, and steadily escape poverty.

The Ba Be branch of the Social Policy Bank is disbursing housing support loans to poor households.

Specifically, implementing Decree No. 28/2022/ND-CP on preferential credit policies for the implementation of the National Target Program for socio -economic development in ethnic minority and mountainous areas, the Ba Be Branch of the Vietnam Bank for Social Policies (VBSP) has disbursed over 4.4 billion VND to support housing for 110 poor households in Thuong Minh commune, with a loan amount of 40 million VND/household, an interest rate of 3%/year, and a term of 15 years.

The bank is also continuing to disburse funds in the communes of Cho Ra, Phuc Loc, Ba Be, and Dong Phuc, helping many poor households access capital, build houses, create jobs, stabilize livelihoods, and rise out of poverty sustainably... This reality clearly demonstrates the enormous role of policy credit in rural economic development, livelihood building, and sustainable poverty reduction.

The clear effectiveness of preferential capital flows.

As of July 31, 2025, the total policy credit capital in Thai Nguyen province reached nearly 8,930 billion VND (an increase of over 323 billion VND compared to the end of 2024) and continued to be effective. Thanks to timely disbursement, in July alone, the Social Policy Bank's provincial branch lent over 131 billion VND to more than 2,000 households; the cumulative figure for the first seven months reached 1,612 billion VND, with over 24,300 customers. Capital recovery reached nearly 1,273 billion VND, equivalent to 79% of the loan volume.

To date, the total outstanding loan balance across the province has reached 8,915 billion VND, achieving 72.5% of the annual plan. The increase in outstanding loans is mainly due to several programs such as: supporting job creation, maintenance, and expansion (247 billion VND); and loans for clean water and rural sanitation (271 billion VND). Nearly 99% of these loans are managed through socio-political organizations, contributing to strict and transparent capital management, ensuring social security and sustainable economic development in the area.

Mr. Nguyen Van Dung's family in Quan Chu commune borrowed capital from the Social Policy Bank to develop livestock farming and tea cultivation, and now earns an income of 80-100 million VND per year.

A typical example is the family of Mr. Nguyen Van Dung in Tham Thinh hamlet, Quan Chu commune. In 2023, he received a loan of 100 million VND from the poverty alleviation program to invest in raising cattle and cultivating one acre of tea. Thanks to this capital, the family now has 6 healthy cows, the tea is properly cared for, their lives are gradually stabilizing, and they have officially escaped poverty.

Mr. Dung shared: "Without preferential loans, my family would have found it difficult to invest in livestock farming and tea cultivation. Now, with a herd of 6 cows and over one acre of tea, we earn 80-100 million VND per year, and our family's life has become more stable..."

Similarly, the family of Ms. Ban Thi Hong in Chiem residential area, Quan Chu commune, also had a favorable start thanks to a job creation loan. With a loan of 50 million VND, she invested in 5 acres of tea. Based on the initial success, she boldly expanded to an additional 1.5 hectares of bananas, creating jobs and a stable income for her family.

Ms. Hong said: "The loan has given me the opportunity to change my life. It not only helps my family earn more income but also motivates me to continue expanding production. To date, my family earns more than 100 million VND per year."

Signing of contracts between the Social Policy Bank, Thai Nguyen Provincial Branch, and socio-political organizations entrusted with the management of policy credit funds.

Alongside capital disbursement, inspection and supervision work has been strictly maintained. In July 2025 alone, the branch monitored 165 commune-level transaction sessions via IP cameras; the cumulative total from the beginning of the year to date has reached 841 sessions, ensuring transparency and credit security.

Building on these achievements, the Vietnam Bank for Social Policies (VBSP) branch in Thai Nguyen province continues to implement Directive 39-CT/TW of the Party Central Committee, streamlining its organizational structure, innovating its operational methods, improving staff capacity, and maintaining fixed transaction schedules at communes, facilitating people's access to policy-based loans. With the motto "leaving no one behind," the VBSP branch in Thai Nguyen province continues to affirm its pivotal role in sustainable poverty reduction and social security policies in the locality.

On July 18, 2025, the Prime Minister signed Decision No. 1560/QD-TTg promulgating the plan for implementing Directive No. 39-CT/TW dated October 30, 2024, of the Central Party Secretariat on improving the effectiveness of social policy credit in the new period.

According to the plan, local authorities at all levels will continue to balance and prioritize the allocation of funds from the local budget to the Vietnam Bank for Social Policies (VBSP) to supplement lending capital for the poor and other policy beneficiaries (striving to account for approximately 15-20% of the VBSP's overall credit growth annually and 15% of the total capital by 2030).

Source: https://baothainguyen.vn/xa-hoi/202508/be-do-tu-nguonvonchinh-sach-48c11d6/