Nha Nam reduces poverty thanks to preferential loans.

BAC NINH - Visiting Nha Nam commune today, one no longer sees the dusty, gravel roads that were characteristic of this midland region when vehicles passed through many years ago. Instead, there are wide, beautiful concrete and asphalt roads leading to each household. Prosperous villages interspersed with many bustling new residential areas are emerging day by day, standing out amidst the lush green carpets of fruit trees.

Prosperous thanks to preferential loans

Ms. Nguyen Thi Nga (born in 1969) from Say village (Nha Nam commune) is very happy because she recently sold a calf and a young calf at a higher price than at the beginning of the year, earning nearly 30 million VND. This result has given Ms. Nga more confidence and motivation in livestock farming.

Officials from the Tan Yen branch of the Social Policy Bank visited the livestock farming model of Ms. Nguyen Thi Nga's household.

Ms. Nga shared: "My husband and I have three children. The first two have already started their own families and have stable jobs. Our third child has an eye condition, so my husband and I have to bear many medical expenses for him. The family's income depends solely on three acres of rice paddies and small-scale livestock farming, plus the cost of our child's medical treatment, so we are very poor, even though my husband still works as a construction worker during the off-season. Therefore, in 2022, our family was classified as a near-poor household."

During a difficult time, struggling to find a livelihood, in early 2023, Ms. Nga was encouraged and motivated by Ms. Dinh Thi Yen, Head of the Women's Association in Say village and also the head of the village's Savings and Loan Group, who shared the benefits of borrowing preferential loans for production development from the Social Policy Bank. Feeling energized, immediately after the conversation with Ms. Yen, Ms. Nga boldly borrowed 100 million VND from the Tan Yen branch of the Social Policy Bank.

With some accumulated savings, frugal living habits, and a loan from relatives, Mrs. Nga bought two cows and one breeding buffalo to raise. After nearly three years of care, the mother buffalo and cow have given birth to six calves. "Although the profit from livestock farming is not much due to the small investment, it has helped cover the cost of medicine for my child, improved our living standards, and given my family more strength to overcome difficulties," said Mrs. Nga.

Mr. Nguyen Dang Hung inspects his flock of chickens before selling them.

Formerly a poor household, but now having escaped poverty, Mr. Nguyen Dang Hung (born in 1965), from Dinh Ha village, has repeatedly borrowed preferential loans under the Social Policy Bank's program for household production and business in disadvantaged areas, driven by a desire to become wealthy. Mr. Hung stated that each time his family received loans ranging from 50 to 100 million VND to purchase breeding cows, chickens, and ducks for raising, and to cultivate over 100 early-ripening lychee trees. Thanks to careful management of small capital and diligent work, his family's production and business have been profitable, and they have repaid their loans on time, thus building trust and encouraging the Tan Yen branch of the Social Policy Bank to continue renewing their loans.

Pointing to his newly built, spacious house, Mr. Hung said: “I owe my current success to raising livestock and poultry and intensively cultivating early-ripening lychees. For poor households like ours, hard work alone is not enough. Because we often rely on our labor for profit, low-interest loans from the Social Policy Bank are always a support for the poor to rise out of poverty and improve their quality of life.”

According to the head of the Tan Yen branch of the Social Policy Bank, as of the end of October 2025, the total outstanding balance of preferential loans in Nha Nam commune reached over 123.8 billion VND. Of this, the loan program for near-poor households, newly-escaped-poverty households, and poor households accounted for over 50.5 billion VND, with the remaining capital allocated to other credit programs. Along with Ms. Nguyen Thi Nga and Mr. Nguyen Dang Hung, more than 1,650 households in Nha Nam commune have received loans and used them effectively and for their intended purpose.

In conjunction with the implementation of other local social welfare policies and the efforts of policy beneficiary families, preferential loans from the State have contributed to reducing the poverty rate in Nha Nam commune from 2.96% (in 2020) to 1.15% (in 2025); and the near-poverty rate from 6.45% to 2.38%.

Reduce the poverty rate to below 1%.

Nha Nam commune was formed by merging Nha Nam town and the communes of Tan Trung, Lien Son, and An Duong, comprising 61 villages and over 33,100 inhabitants. These were mostly disadvantaged areas of the former Tan Yen district. The people's income mainly depended on agricultural production.

According to the Tan Yen branch of the Social Policy Bank, as of the end of October 2025, the total outstanding balance of preferential loans in Nha Nam commune reached over 123.8 billion VND. This loan capital has contributed to reducing the poverty rate in Nha Nam commune from 2.96% (in 2020) to 1.15% (in 2025); and the near-poverty rate from 6.45% to 2.38%.

Despite facing numerous challenges, especially in the initial stages of operating the two-tiered local government model, the Party Committee and the government of Nha Nam commune remain determined to direct and integrate state support funds to effectively implement the National Target Program for Sustainable Poverty Reduction, striving to further reduce the number of poor households by 56, bringing the poverty rate in the entire commune down to below 1% by 2025.

According to Ms. Do Thi Hai Yen, Chairwoman of the People's Committee of Nha Nam commune, to achieve the set goals, in addition to coordinating with the Sub-Department of Cooperative Economics and Rural Development (Department of Agriculture and Environment) to build and develop more OCOP products, bringing income to farmers; completing projects funded by the National Target Program for New Rural Development in the area, the commune closely cooperates with the Tan Yen Branch of the Social Policy Bank to review, select, and compile a list of households eligible for preferential loans for economic development; and at the same time, requests the Branch to disburse funds to beneficiaries as soon as possible in the villages.