Policy credit - a driving force for sustainable poverty reduction in Son La

With flexible and effective working methods, the Son La Provincial Social Policy Bank Branch has promoted the strength of the entire political system, bringing preferential capital to the right subjects, creating sustainable livelihoods, affirming its important role in poverty reduction, ensuring social security and building new rural areas in the locality.

Mr. Hoang Xuan Truong, Director of the Son La Provincial Branch of the Vietnam Bank for Social Policies (VBSP), said: After nearly 3 years of implementing Decision No. 05/QD-TTg dated January 4, 2023 of the Prime Minister approving the Strategy for Development of the VBSP to 2030, the Branch has implemented many synchronous solutions, focusing on improving credit quality and consolidating the network of operations to the grassroots level. Currently, 75 communes and wards in the province maintain 200 monthly transaction points, becoming a "bridge" to help people access capital quickly, conveniently, publicly and transparently.

According to statistics, in the first 9 months of 2025, the total loan turnover of the entire branch reached more than 1,580 billion VND, with over 22,200 customers receiving loans; total outstanding loans reached over 7,244 billion VND, with 119,412 households still having outstanding loans. In the period from 2021 to now, nearly 158,000 poor and near-poor households and policy beneficiaries have borrowed nearly 7,900 billion VND, helping 39,000 households escape poverty, contributing to reducing the poverty rate of the whole province from 18.3% in 2020 to 10.8% by the end of 2024.

Focusing on promoting the effectiveness of loan capital, the Branch coordinates with local authorities and socio- political organizations to carry out inspection, supervision and guidance on capital use. In the period of 2021-2025, members of the Board of Directors of the Social Policy Bank at all levels in Son La province have organized nearly 2,000 inspections and supervisions at the district, commune, savings and loan group levels, as well as directly at borrowing households. Thanks to that, credit quality has been continuously consolidated, overdue debt has always been low.

Currently, the whole Son La province has 3,731 savings and loan groups, of which 3,672 are classified as good or fair (accounting for 98%). The savings and loan groups help the Social Policy Banks stay close to the grassroots, promptly support and guide borrowers, contributing to ensuring credit quality and improving capital use efficiency.

The goat grazing model of people in Son La brings good economic efficiency.

Ms. Quang Thi Van, Vice President of the Women's Union of Son La province shared: The Union has well implemented the contents of the agreement signed in the joint document with the Provincial Branch of the Bank for Social Policies. Up to now, the Union at all levels has established 951 savings and loan groups, with a total outstanding loan balance of nearly 1,900 billion VND, helping nearly 32,000 members and poor women to borrow capital. From preferential loans, many women have risen out of poverty, becoming the nucleus of economic development in the locality.

Joining the digital transformation trend, the Son La Provincial Social Policy Bank Branch promotes the application of information technology in management, operation and transactions. Credit policy management applications on mobile phones and cashless payments are gradually deployed, helping people in remote areas access financial services conveniently and safely. Up to now, 100% of commune transaction points are equipped with online data connection software systems, ensuring strict and transparent management and quickly serving people's needs.

Mr. Hoang Xuan Truong, Director of the Son La Provincial Social Policy Bank Branch, added: The unit continues to closely follow the direction of the Central Government and the province, focusing on improving credit quality, expanding beneficiaries, ensuring that all poor and near-poor households and policy beneficiaries with needs and conditions have access to preferential capital. Along with that, closely linked with key socio-economic development programs of Son La province such as: Sustainable poverty reduction program, new rural construction, development of ethnic minority areas, job creation and restructuring of agricultural economy.

The synchronous participation of the entire political system and credit policies in Son La is becoming an important driving force to promote socio-economic development, improve people's lives, and contribute to building an increasingly rich and civilized province.

Source: https://bvhttdl.gov.vn/tin-dung-chinh-sach-dong-luc-giam-ngheo-ben-vung-o-son-la-20251109155817758.htm