Bringing policies to ethnic minorities

Preferential loans have contributed to helping people have more opportunities to develop production, improve their livelihoods, and move towards the goal of sustainable poverty reduction.

Promoting access to production loans for ethnic minority households.

In Hamlet 3, Bao Lam 5 Commune, K'Drim's family is one of the exemplary households that effectively utilizes loan capital. Thanks to a 90 million VND loan from the job creation credit program, he boldly invested in purchasing raw materials to maintain and expand the traditional handicraft weaving craft of the K'Ho ethnic group.

K'Drim said: "Without the loan from the Policy Bank, my family would have found it difficult to maintain the traditional craft passed down from our grandparents. With the capital, I bought raw materials, invested in machinery, and expanded the workforce by a few more people in the village. Thanks to that, we have a stable income each month, and life is less difficult."

Thanks to policy-based loans, K'Drim boldly invested in purchasing raw materials to maintain and expand the traditional handicraft weaving craft of the K'Ho ethnic group.

Thanks to policy loans, many households in Bao Lam 5 commune have gradually escaped poverty and developed economically. A prime example is Mr. K'Bui Thanh Nha in Hang Ka Loc Bao village – a former soldier. After completing his military service, he returned to his hometown with the aspiration to start a business on his land. Having borrowed 100 million VND from the job creation support loan program, he boldly purchased high-yield durian and grafted coffee seedlings for intercropping.

Mr. Nha shared: "When I was discharged from the army, I didn't have much capital and lacked production experience. Thanks to preferential loans from the Policy Bank, I was able to buy good seeds and learn cultivation techniques. Now, my orchard is thriving, gradually providing a stable income for my family."

With funding from government policies, Mr. K'Bui Thanh Nha boldly invested in developing high-yield durian and grafted coffee plantations for intercropping.

Policy credit funds have truly empowered ethnic minority people in Bao Lam 5 commune to confidently develop their economy . Many households that previously faced difficulties now have the opportunity to invest in production, rise out of poverty, and gradually become wealthy in their own homeland.

Strengthen coordination to ensure funds reach the intended beneficiaries.

Ms. Truong Thi Le Phuong, Director of the Bao Lam Branch of the Vietnam Bank for Social Policies, said that the unit always considers delivering preferential credit capital to the right target groups as its top priority.

In particular, implementing the preferential credit policy under the National Target Program for socio-economic development of ethnic minority and mountainous areas in the period 2021-2030, the unit has proactively coordinated with the commune authorities and socio- political organizations to review and compile a list of households eligible for loans, ensuring transparency, accountability, and targeting the correct beneficiaries.

In addition to focusing on disbursing loans, the Bao Lam Branch of the Social Policy Bank regularly coordinates with the People's Committee, the Fatherland Front Committee, and other associations at the commune level to disseminate policy information and guide people on how to use capital effectively. At the same time, savings and loan groups are strengthened to ensure their operation complies with regulations.

In addition, mass organizations regularly participate in briefing meetings, witness loan approval and disbursement processes, and inspect the use of funds 30 days after disbursement to mitigate risks and improve credit efficiency.

For example, in Bao Lam 5 commune, which has a high percentage of ethnic minority households borrowing policy loans, statistics show that as of October 23, 2025, the total outstanding loan balance in the commune reached 125,556 million VND, with 1,542 customers still having outstanding loans.

The ratio of overdue and non-performing loans is low, at only 0.12%, indicating stable credit quality and the proper use of capital. The entire commune currently has 31 effective savings and loan groups, contributing to raising awareness of saving, repaying debts, and managing loan capital within the community.

The Bao Lam branch of the Social Policy Bank, in coordination with local organizations and authorities, is stepping up efforts to promote preferential loan programs for eligible individuals in the area.

Trust funds from socio-political organizations continue to be effective, helping people access capital quickly, conveniently, and without interruption. Many small-scale production and business models, including farming and livestock breeding, have brought stable incomes, contributing to changing the face of rural areas inhabited by ethnic minorities.

From practical implementation, it can be seen that policy credit programs have truly played the role of an "economic lever" for ethnic minority communities. Preferential loans not only help people have the means of production but also create conditions for them to access knowledge, apply science and technology, change their business mindset, and gradually shift from self-sufficient production to commodity development.

Many households that borrowed capital have boldly adopted models of grafted coffee cultivation, intercropping with durian, growing medicinal plants, or developing sustainable livestock farming. Some households have become successful producers and business owners, spreading the spirit of striving for progress within the ethnic minority community.

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In the coming period, the unit will continue to coordinate with mass organizations and local authorities to promote the dissemination of preferential loan programs. At the same time, it will carefully review the needs of ethnic minority households, guide them in preparing loan applications, and ensure the funds are used for the intended purpose to develop production and increase income.
Ms. Truong Thi Le Phuong, Director of the Bao Lam Branch of the Vietnam Bank for Social Policies.

Beyond simply providing loans, bank credit officers regularly visit villages and hamlets to understand the situation, provide technical support, and encourage farmers in their production process. This approach of being close to the people has helped the preferential credit policy truly become a part of their lives.

With its effectiveness, the social policy credit program in Bao Lam is making a positive contribution to poverty reduction, rural development, and socio-economic development in ethnic minority areas.

Source: https://baolamdong.vn/dua-chinh-sach-den-voi-dong-bao-dan-toc-thieu-so-398592.html