Preferential capital flows provide support to mountainous regions.

Following the merger of Lao Cai and Yen Bai provinces, the northern border region today has a new, larger, more promising, and also more challenging appearance. In its development journey, one of the crucial "lifelines" that has helped the locality overcome difficulties is social policy credit capital.

The transaction points of the Lao Cai Provincial branch of the Vietnam Social Policy Bank maintain their transaction schedules and actively provide preferential loans to poor households.

Contributing to helping people overcome poverty and stabilize their lives, the Social Policy Bank (SPB) of Lao Cai province has consistently maintained stable operations, ensuring the smooth, safe, and effective flow of preferential state capital.

With an area of ​​over 13,200 km², Lao Cai is a mountainous border province with rugged terrain and a large population of ethnic minorities. Life is still difficult, and infrastructure is underdeveloped. In this context, policy-based credit has truly become a solid foundation for the poor to rise out of poverty.

According to Tran Quang Son, Director of the Lao Cai Provincial Branch of the Vietnam Bank for Social Policies (VBSP), the key factor contributing to the effectiveness of operations is the close attention and guidance from the higher-level bank and local leaders. Policy credit is identified as a pillar in the socio-economic development strategy, ensuring social security and sustainable poverty reduction. This capital contributes to narrowing the gap between mountainous and lowland areas, and between ethnic minorities and the national average.

Established in 1995, the Lao Cai branch of the Vietnam Bank for Social Policies (VBSP) has implemented a comprehensive set of solutions to ensure a continuous and uninterrupted flow of preferential loans. According to the provincial VBSP report, as of August 31, 2025, the total operating capital of the province reached VND 11,311 billion, of which entrusted local capital amounted to VND 1,061.9 billion, an increase of over VND 330 billion compared to 2024. Loan disbursements reached VND 2,440 billion, helping more than 35,250 poor households and policy beneficiaries access preferential loans. As a result, the poverty rate in the former Lao Cai province decreased from 54.8% in 1995 to 7.8% at the end of 2024. After the merger, the new Lao Cai province strives to continue reducing the average annual poverty rate among ethnic minorities by 5-6%, and to remove 61 communes and 494 villages from the list of particularly disadvantaged areas.

According to Ngo Hanh Phuc, Vice Chairman of the Provincial People's Committee and Head of the Board of Directors of the Vietnam Bank for Social Policies (VBSP) in Lao Cai province: “In the context of administrative boundary mergers, the VBSP in Lao Cai province has quickly stabilized its organization, maintained operations, and ensured the safety of policy credit capital flows. This is a result demonstrating the competence and high sense of responsibility of the bank's staff, making a practical contribution to poverty reduction and socio-economic development in the locality.”

Lao Cai province currently has 319 commune-level transaction points, including 98 located at the former commune People's Committee headquarters, 67 at the new communes, and 154 at village cultural centers and meeting halls. Transaction activities are maintained smoothly, ensuring the safety of people and property. Local authorities proactively arrange locations, signage, and information boards to make it easy for people to access and monitor.

Ms. Vuong Thi Hai Van, from Giang Dong village, Cam Duong ward, shared: “Thanks to a 100 million VND loan from the employment program, my family has been able to expand production, earn a better income, and have a more stable life.” Mr. Mua A Vang, from Rao Xa village, Mu Cang Chai commune, said: “Before, we H'Mong people only did slash-and-burn farming, and we were often hungry. Thanks to a 50 million VND loan from the Social Policy Bank, I raised breeding cows and cultivated wet rice. Now I have 12 cows and 5 acres of rice fields, and my life is much better.”

According to Giàng A Câu, Secretary of the Party Committee of Mù Cang Chải commune, political and social organizations in the area have always demonstrated a sense of responsibility, effectively fulfilling their assigned tasks and ensuring that capital reaches the right people and the right purposes. Not only in remote areas, but also in newly merged wards, the Lao Cai branch of the Vietnam Bank for Social Policies (NHCSXH) proactively coordinates with local authorities to ensure that disbursement, debt collection, interest collection, and deposit taking place smoothly and safely.

Entering a new phase, the Provincial Social Policy Bank is focusing on implementing Directive No. 39-CT/TW dated October 30, 2024, of the Party Central Committee on improving the effectiveness of social policy credit. “Social policy credit capital is the trust that the Party and State have placed in the people. Maintaining the smooth flow of that capital is also maintaining the trust of the people in the highlands in the Party and the government,” Mr. Tran Quang Son shared.

DONG DU and VIET PHONG

Source: https://nhandan.vn/dong-von-uu-dai-tiep-suc-vung-cao-post917302.html