Preferential loans help Thuong Tin achieve sustainable poverty reduction.

From the construction of thousands of clean water and sanitation projects, the creation of thousands of jobs, to the expansion of traditional craft villages, preferential capital has contributed to profound changes in community life, affirming its irreplaceable role in sustainable poverty reduction in the locality.

Supporting livelihoods and improving living standards.

After merging Thuong Tin town and 7 communes: Van Binh, Van Phu, Nhi Khe, Khanh Ha, Hoa Binh, Tien Phong and Hien Giang, Thuong Tin commune became one of the largest administrative units in the district with a natural area of 28.29 km², a population of 70,739 people and 37 villages.

Along with territorial expansion, localities also face the challenge of ensuring livelihoods for their people, stabilizing social security, and creating conditions for households to access resources for production development. In this context, policy credit plays a crucial role as a solid support.

Policy-based funding has helped thousands of households in Thuong Tin commune to improve their economic situation . Photo: Thu Hien

According to the People's Committee of Thuong Tin commune, as of the end of November 2025, the total policy credit capital allocated in the commune reached over 192 billion 953 million VND. Compared to June 30, 2025, the capital increased by more than 6 billion 120 million VND and the total increase was 16 billion 350 million VND compared to 2024. This increased capital means that more target groups can access capital, expanding opportunities for economic development in both craft villages, rural areas, and vulnerable household groups.

Alongside allocated funds, Thuong Tin commune also focuses on encouraging people to deposit savings. As a result, individual deposits at the commune's transaction point reached 19 billion 085 million VND, while deposits from savings and loan groups amounted to 8 billion 109 million VND. This is not only an important supplementary resource but also demonstrates the proactive approach and trust of the people in the policy credit channel, creating a financial foundation that helps the commune maintain stable and sustainable lending and deposit activities.

Thanks to policy-based funding, many households and businesses have received timely capital to develop their economy. Photo: To Quy

From the beginning of the year to mid-October 2025, the commune's lending volume reached VND 61.61 billion, with 868 customers receiving capital. Debt collection volume reached VND 45.715 billion, with both principal and interest collection rates reaching 100%, reflecting the effective use of capital by borrowers and demonstrating the financial responsibility and repayment capacity of the people. The total outstanding policy credit reached VND 192.797 billion, an increase of VND 16.17 billion compared to 2024, with 3,335 customers currently benefiting.

Thuong Tin commune is implementing six policy credit programs, including loans for job creation, maintenance, and expansion; loans for clean water and rural sanitation; loans for disadvantaged students; loans for those who have completed their prison sentences; loans for social housing; and loans for poor households for housing. This diversity allows all target groups to choose a suitable loan package, from laborers and small-scale producers to families with children attending university and special cases requiring support for reintegration.

Deputy Chairman of Thuong Tin Commune People's Committee, Nguyen Van Tan, emphasized that policy-based credit has played and continues to play an essential role in the socio-economic development of the locality. According to him, to date, there are no longer any poor or near-poor households in need of loans that are not supported, demonstrating fairness and effectiveness in accessing resources for the community. He affirmed that preferential capital has helped people change their mindset, shifting from dependence to proactively developing production, increasing income, and gradually establishing a stable life.

Thuong Tin always stands by and supports those in difficult circumstances and vulnerable individuals, ensuring "no one is left behind." Photo: To Quy

In addition, thanks to policy credit funds, the commune has built and renovated 1,710 clean water and sanitation facilities, supported job creation for 2,270 workers, assisted in building houses for 57 poor households, and disbursed loans for 6 social housing cases. These figures demonstrate the strong spread of capital within the community and reflect the importance of investing in essential items such as clean water, environment, and housing – fundamental elements to ensure a quality of life and promote sustainable poverty alleviation for poor households.

Representatives from the Department of Labor, War Invalids and Social Affairs of Thuong Tin commune stated that policy-based credit has significantly eased the pressure on poverty reduction efforts, especially after the merger when the number of households needing support increased. People being able to borrow capital to develop production helps them proactively generate income, reduce dependence on budget support, and limit re-poverty in the long term. If further funding is provided, the commune can implement more effective economic models suitable to its local characteristics.

Promoting the development of traditional craft villages.

Besides serving Thuong Tin commune, the Thuong Tin branch of the Social Policy Bank also manages policy credit in the communes of Thuong Phuc, Hong Van, and Chuong Duong. This places significant pressure on the unit to ensure that capital reaches the right recipients, at the right time, and is used effectively.

In the first 11 months of 2025, the Thuong Tin branch of the Social Policy Bank disbursed loans to over 3,389 customers. Of these, more than 608 customers borrowed capital to build and repair clean water and sanitation facilities, contributing to improving living conditions for many households. The number of people borrowing capital to create, maintain, and expand jobs reached 2,779 – a clear demonstration of the people's need for production development and the effective support from the policy credit channel. In addition, two cases of individuals who had completed their prison sentences receiving production loans showed the humanitarian significance of the program, giving offenders the opportunity to reintegrate into the community.

Many disadvantaged families receive support through policy-based loans for economic development. Photo: Thu Hien

Traditional craft villages in Thuong Tin, renowned for products such as fine wood carvings, lacquerware, embroidery, and horn combs, have significantly benefited from preferential loan programs. Many small-scale producers have boldly invested in additional machinery, expanded their workshops, and hired more workers thanks to loans tailored to their financial capabilities. The development of these craft villages not only creates local jobs but also preserves local cultural identity and promotes the Thuong Tin craft village brand to spread more widely.

According to a representative from the Thuong Tin branch of the Social Policy Bank, the stable quality of credit is maintained thanks to the close coordination between the bank, the commune government, and various associations. Savings and loan groups regularly receive training to improve their capacity and strengthen supervision and inspection of capital usage by each household, thereby promptly detecting cases of misuse of funds for corrective action. The representative also stated that the commune government pays attention to arranging convenient transaction points, ensuring security and adequate facilities, making it easy for people to access bank services.

Besides the achievements, the associations and organizations at the conference also raised several recommendations to further improve the effectiveness of policy credit activities. Representatives of the associations suggested that the City's Social Policy Bank advise on allocating allowances to village heads when they also serve as heads of savings and loan groups; and consider reducing interest rates on some preferential programs to better suit the current economic context. The commune government also proposed that the higher authorities continue to supplement capital to meet the rapidly increasing demand for loans during the economic restructuring period after the merger.

Thanks to policy-based funding, many farming households in Thuong Tin commune have developed effective agricultural economic models. Photo: To Quy

Nguyen Van Tan, Vice Chairman of the People's Committee of Thuong Tin commune, affirmed that Thuong Tin is currently facing a favorable time to strongly develop household and group-based economic models, especially in traditional craft villages. However, this can only be achieved with maximum effectiveness if the commune receives timely supplementary capital from policy-based credit. Having additional capital will help people proactively invest in production, expand business scale, and improve product quality, thereby creating more stable jobs and improving income for local people.

It is evident that policy-based capital has helped many disadvantaged households in Thuong Tin commune rise out of poverty, develop their family economies, thereby contributing to socio-economic stability, curbing illegal lending, supporting sustainable development for the people, and strengthening confidence in the policies of the Party and the State.

Overall, policy-based credit continues to be a crucial driving force helping Thuong Tin commune achieve its goals of poverty reduction, social stability, and sustainable economic development. Preferential capital flows reach every target group, supporting people in transforming their livelihoods, preserving traditional crafts, and building increasingly better lives.

Source: https://hanoimoi.vn/nguon-von-uu-dai-giup-thuong-tin-giam-ngheo-ben-vung-726424.html