'Support' from policy capital

In the historic transition when the two-level local government apparatus was officially put into operation, the policy capital flow remained steadfastly directed to the grassroots, to poor households and vulnerable groups. With the motto of “close to the people”, Thai Nguyen Branch of the Bank for Social Policies continues to expand its transaction network, ensuring that each preferential capital becomes a solid foundation for sustainable poverty reduction.

Staff of the Social Policy Bank, Thai Nguyen Province Branch, coordinated to inspect the effectiveness of using policy credit capital to develop fruit tree planting in Phuc Thuan Ward.

Increase transaction points, expand trust

Mr. Pham Tuan Hung, Director of the Vietnam Bank for Social Policies (VBSP) Thai Nguyen Branch, emphasized: In the context of the local government apparatus shifting to a two-tier model, the requirement for us is to both streamline the organization and ensure capital flows to the right subjects, promptly and transparently.

Maintaining 273 transaction points, opening more Bac Kan Transaction Offices, and expanding trust through socio-political organizations not only creates convenience for people but also affirms the commitment that "policy capital must truly be a support for poor households and vulnerable groups".

Accordingly, the Branch has proactively coordinated with departments and branches to advise the Provincial People's Committee to supplement capital sources and complete the preferential lending mechanism according to Resolution 111/2024/QH15; at the same time, it has signed joint agreements with 4 socio- political organizations, received additional credit projects from the Women's Union, and expanded the trust network. Currently, socio-political organizations provide trust services with a total outstanding debt of over VND 8,800 billion, accounting for nearly 99% of the total outstanding debt of the Vietnam Bank for Social Policies.

To verify the effectiveness of policy credit, Director of the Social Policy Bank, Thai Nguyen Branch, Pham Tuan Hung, directly surveyed many transaction points, including the Pac Nam Social Policy Bank Transaction Office - where outstanding loans exceeded VND 384 billion, with more than 5,000 customers, an increase of VND 11.7 billion compared to the end of 2024.

Notably, up to 95.5% of capital is entrusted through socio-political organizations, ensuring that capital flows to the right address, is transparent, and that every penny of policy capital is used for the right purpose, becoming the "key" to help households increase their income, stabilize their lives and steadily escape poverty.

Ba Be Social Policy Bank transaction office disburses housing support loan package for poor households.

In particular, implementing Decree No. 28/2022/ND-CP on preferential credit policies to implement the National Target Program on socio-economic development in ethnic minority and mountainous areas, Ba Be Social Policy Bank Transaction Office has disbursed over 4.4 billion VND to support housing for 110 poor households in Thuong Minh commune, with a loan of 40 million VND/household, interest rate of 3%/year, term of 15 years.

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

Clear effects from preferential capital flows

As of July 31, 2025, the total policy credit capital in Thai Nguyen province reached nearly VND 8,930 billion (an increase of over VND 323 billion compared to the end of 2024) and continued to be effective. Thanks to timely disbursement, in July alone, the VBSP Provincial Branch lent over VND 131 billion, with more than 2,000 households receiving loans; the accumulated 7 months reached VND 1,612 billion, with over 24,300 customers. Capital recovery reached nearly VND 1,273 billion, equivalent to 79% of loan turnover.

To date, the total outstanding debt in the province has reached VND8,915 billion, completing 72.5% of the annual plan. The outstanding debt increased mainly in some programs such as: Supporting job creation, maintaining and expanding employment VND247 billion; lending for clean water and rural environmental sanitation VND271 billion. Of which, nearly 99% is entrusted 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 growing, and now has an income of 80-100 million VND/year.

A typical example is the family of Mr. Nguyen Van Dung in Tham Thinh hamlet, Quan Chu commune. In 2023, he was able to borrow 100 million VND from the poor household program to invest in raising cows and taking care of a hectare of tea. Thanks to this capital, the family now has 6 healthy cows, the tea is properly fertilized, life is gradually stable, and they have officially escaped poverty.

Mr. Dung shared: Without preferential capital, my family would have had difficulty investing in livestock and tea growing. Up to now, with a herd of 6 cows and more than one hectare of tea generating an income of 80-100 million VND/year, my family's life has become more stable...

Similarly, Ms. Ban Thi Hong’s family in Chiem residential group, Quan Chu commune, also had a favorable start thanks to the job creation loan. With a loan of 50 million VND, she invested in 5 sao of tea. From the initial results, she boldly expanded to 1.5 hectares of bananas, creating jobs and stable income for her family.

Ms. Hong said: The loan has given me the opportunity to change my life. Not only does it help my family earn more income, but it also motivates me to continue expanding production. Up to now, my family has an income of more than 100 million VND/year.

Signing contracts between the Social Policy Bank, Thai Nguyen Province Branch and socio-political organizations entrusted with policy credit capital.

Along with capital disbursement, inspection and supervision work is maintained seriously. In July 2025 alone, the Branch monitored 165 commune transaction sessions via IP cameras; the cumulative number from the beginning of the year to date has reached 841 sessions, ensuring transparency and credit safety.

Promoting this result, the Social Policy Bank Thai Nguyen Branch continues to implement Directive 39-CT/TW of the Secretariat, perfecting the apparatus, innovating the operation method, improving the capacity of staff and maintaining a fixed commune transaction schedule, facilitating people to access policy capital. With the motto "leaving no one behind", the Social Policy Bank Thai Nguyen Branch continues to affirm its pivotal role in the policy of sustainable poverty reduction and social security in the locality.

On July 18, 2025, the Prime Minister signed Decision No. 1560/QD-TTg promulgating the plan to implement 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 continue to balance and prioritize the allocation of capital from local budgets entrusted to the VBSP to supplement lending capital for the poor and other policy beneficiaries (striving to annually account for about 15-20% of the total credit balance growth of the VBSP and by 2030 account for 15% of total capital).

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