For policy-based capital to truly become a sustainable source of livelihood.

Many households have escaped poverty thanks to policy-based credit, but the effectiveness is not uniform. Ensuring that every dollar of capital not only reaches the right people but is also used correctly to create sustainable livelihoods remains a challenge at the local level.

Presenting gifts to poor households who have borrowed policy loans in Vu Gia commune. Photo: HOANG LIEN

Support for advancement from the grassroots level.

In Ban Thach ward, policy-based credit activities have been implemented quite synchronously, bringing capital closer to the people. In 2025, the total outstanding loan balance reached over 139 billion VND, an increase of 7% compared to the previous year, with more than 1,700 households receiving loans. In February 2026 alone, an additional 2.5 billion VND was disbursed to 28 households, providing timely livelihood support after Tet.

A noteworthy aspect is the way these lending sessions are organized right in the ward. This allows residents – especially poor households and the elderly – to access capital more easily, reducing travel costs, while also increasing transparency. With timely support, vulnerable individuals can completely rise up on their own. From loans ranging from tens to hundreds of millions of dong, many households in Ban Thach ward have boldly invested in small-scale production and trading. For example, Ms. Huynh Thi Thao, who escaped poverty through cattle farming, is now borrowing capital to expand her business; Ms. Bui Thi Binh maintains a small eatery; and Ms. Tran Thi Anh Nguyet carefully saves every penny to both provide for her livelihood and support her children's education.

Commendation for outstanding collective performance in social credit work in Ban Thach ward. Photo: HOANG LIEN

Not only in Ban Thach, but also in Vu Gia commune, policy-based credit is becoming a "lifeline" for the poor. In 2025, Vu Gia commune will have 65 poor households (accounting for 0.97%) and 169 near-poor households (2.51%). While this number is not large, it still poses a risk of re-poverty if stable livelihoods are lacking. In 2025, loan disbursements in the commune are expected to reach over 31.2 billion VND with 1,545 customers; total outstanding loans will exceed 88.4 billion VND.

The allocated funds were distributed to many practical programs, demonstrating clear effectiveness: 125 poor, near-poor, and newly-escaped-from-poverty households gained access to capital; approximately 200 workers found employment; many students were able to continue their education; and over 250 clean water and sanitation projects were constructed. From this capital, Mr. Phan Cong Trung (Quang Dai village) borrowed 50 million VND to expand his rice paper production, earning approximately 20 million VND per month and creating jobs for 7-10 workers. Similarly, Mr. Le Van Dong (Quang Dai village), with a loan of 90 million VND, developed a construction materials business, creating jobs locally.

Chairman of Vu Gia Commune People's Committee, Le Phan Minh, acknowledged: "The capital has played its proper role in helping people develop production and increase their income. More importantly, people have gradually changed their mindset, proactively engaging in business instead of waiting for support." However, in reality, the effectiveness of capital utilization is not uniform. A grassroots credit officer frankly admitted that without business knowledge or market information, borrowers easily fall into a state of stagnation and struggle to accumulate capital. Therefore, the problem is not simply about "lending to the right people."

Supporting borrowers

The need to improve the quality of policy-based credit is becoming increasingly urgent. In reality, the effectiveness of capital depends heavily on whether borrowers receive support throughout the entire process of using the funds.

In Ban Thach ward, savings and loan groups are playing a crucial role in maintaining the momentum at the grassroots level. Many groups operate effectively, with no overdue debts. However, there are still disparities between groups, and post-loan inspections are sometimes infrequent. To address this, a representative from the Ban Thach Ward Farmers' Association stated that the association has intensified its outreach efforts, closely monitoring each borrowing household; strengthening loan groups and selecting responsible management boards. Loan approvals are conducted transparently, accompanied by pre-loan, during-loan, and post-loan inspections; and interest payments are closely monitored to promptly remind and address any delays.

Nguyen Duy An, Secretary of the Ban Thach Ward Party Committee, said: “To improve the effectiveness of policy-based credit, we cannot just stop at disbursement. The important thing is to closely monitor borrowers, guide them on how to do business, and use the capital for the right purpose. When people do business effectively, the capital will truly realize its value.” According to Mr. An, the locality is strengthening coordination between the government and mass organizations to improve the quality of entrusted funds. This must be the shared responsibility of the entire political system, not just the banking sector.

In Vu Gia commune, this orientation is concretized by closely reviewing loan needs, assigning officials to monitor the area, strengthening the loan group system, and promptly handling cases of inefficient use of funds. The Chairman of the People's Committee of the commune, Le Phan Minh, said: "We cannot leave people to fend for themselves after receiving funds; there must be constant support."

From practical experience in various localities, it can be seen that shifting from "lending" to "accompanying borrowers" is not just a method but an essential requirement to transform capital into sustainable livelihoods and successfully achieve the goal of genuine poverty reduction.

Source: https://baodanang.vn/de-dong-von-chinh-sach-thuc-su-la-sinh-ke-ben-vung-3333322.html