Policy capital - a solid foundation in the journey to escape poverty

People apply for loans at the Transaction Office of the Social Policy Bank, Tan Phu branch. Photo: Le Duc

In Dong Nai, thanks to the close coordination between the Vietnam Bank for Social Policies and 4 entrusted socio- political organizations, the charitable capital has been showing clear effectiveness, becoming a launching pad to help people develop the economy and stabilize their lives.

Capital opens the way out of poverty

15 years ago, Mr. Tran Van Dai (residing in Thanh Son commune) only had 30 million VND in hand when borrowing from the Vietnam Bank for Social Policies. That was a small amount of capital but enough for him to boldly renovate his mixed garden and switch to growing durian. In subsequent loans, the capital increased to 50 million VND, then 100 million VND, helping him expand his production scale. Up to now, 2 hectares of durian bring his family more than half a billion VND in income each year.

Mr. Dai shared: “Without the capital from the Social Policy Bank, I would not have been able to do it. Thanks to the enthusiastic guidance of the Farmers’ Association and the loan group officers, I have used the capital for the right purpose, done business effectively and have peace of mind to develop the economy .”

The joy of escaping poverty of Mr. Tran Van Tam (residing in Hamlet 2, Tan Phu Commune) is even many times greater than that of other households. After decades of working hard in a garden of more than 1 hectare, Mr. Tam still could not escape the persistent poverty. Until being mobilized and understanding the purpose and meaning of policy credit capital, in 2016, Mr. Tam borrowed policy capital to renovate the garden and switched to growing durian. With the support of local technical staff, Mr. Tam's durian garden developed strongly, the first harvests gave high yields, thanks to which his income was stable. In 2024, he wrote an application to be removed from the poor household status to give opportunities to other poor households.

Mr. Tran Van Tam said: “The social policy capital has helped me overcome poverty. Thanks to this capital, I have more conditions to take care of my children's education. Now that they have graduated and have jobs, I am very happy.”

Similarly, many other households also found opportunities to change their lives thanks to policy capital. Mr. Nguyen Van Minh, a resident of Nam Cat Tien commune, emotionally expressed: "The preferential capital source gives me more motivation to boldly invest in livestock and crop farming. Low interest rates, simple procedures, dedicated bank staff, so people are very excited and confident."

According to the Dong Nai branch of the Social Policy Bank, the total outstanding debt of policy credit programs currently reaches more than 12 trillion VND, with more than 215 thousand borrowers still in debt. Since the beginning of 2025, more than 50 thousand borrowers have accessed capital, with a total disbursement of over 2,200 billion VND. In addition, 270 commune transaction points are operating smoothly and safely, helping people save time and travel costs.

Smooth coordination - improving the effectiveness of policy credit

A highlight in the implementation of policy credit in Dong Nai is the close coordination between the Vietnam Bank for Social Policies and four socio-political organizations including: Youth Union, Women's Union, Farmers' Union and Veterans' Association.

Currently, the entrusted loan balance has reached more than 11.6 trillion VND, accounting for 99.1% of the total outstanding loan balance of the entire branch. Specifically: Youth Union 1.6 trillion VND, Veterans Association over 2.1 trillion VND, Farmers Association over 3.6 trillion VND, Women's Union over 4.3 trillion VND. Thanks to the responsible companionship of organizations, 87.3% of savings and loan groups (TKVV) are classified as good; the whole province has only 0.1% of TKVV groups classified as weak.

With the determination to successfully complete the targets for 2025 and the following years, Dong Nai Social Policy Bank is affirming its position as a "pillar" of microfinance policy, where preferential capital not only helps the poor escape poverty but also ignites the aspirations of tens of thousands of households, contributing to the comprehensive, sustainable and humane development of Dong Nai.

Mr. Nguyen Van Hien, Vice Chairman of the Vietnam Fatherland Front Committee of Thanh Son Commune, Chairman of the Veterans Association of Thanh Son Commune, commented: “The association organizations not only act as a bridge to bring loans to the right people, with the right needs, but also closely monitor the use of capital. Thanks to that, the quality of credit is improved, people trust, and the movement of good economic development is spreading more and more strongly.”

Director of the Transaction Office of the Social Policy Bank, Trang Bom Branch, Pham Thi Hue Quyen, shared: “After the merger, the implementation of policy capital in Trang Bom continued to achieve remarkable results; capital flows were strictly managed, disbursed promptly, and to the right subjects. Thereby, contributing to improving credit quality, providing practical support for poor households and policy beneficiaries to stabilize their livelihoods and strive for economic development.”

Mr. Tran Pham Tuan Anh, Director of the Transaction Office of the Social Policy Bank of Binh Phuoc affirmed: “In recent times, policy credit capital has affirmed its important role in the process of socio-economic development and sustainable poverty reduction of the locality. The State's preferential credit capital has always been cleared, flowing regularly to the villages (neighborhoods) to the right beneficiaries. With the motto "Transactions at home, disbursement, debt collection at the transaction point", maintaining the policy credit system "close to the people, close to the people, serving the people".

Increase efficiency in serving people

Dong Nai Social Policy Bank is promoting the implementation of Directive 39-CT/TW and the Development Strategy of the Social Policy Bank to 2030, proactively advising many directive documents to the Provincial People's Committee to enhance the effectiveness of policy credit in the new period. Digital transformation is focused on: 100% of TKVV team leaders have used credit management applications; VBSP SmartBanking is promoted, contributing to promoting non-cash payments.

Mr. Tran Van Tam's household (right cover, residing in Hamlet 2, Tan Phu Commune) escaped poverty thanks to timely access to policy credit capital.

Mr. Vo Trong Hoa, Deputy Director of the Dong Nai branch of the Vietnam Bank for Social Policies, affirmed: “We continue to prioritize capital for poor households, near-poor households, and policy beneficiaries; promote disbursement of social housing and capital to support people who have completed their prison sentences to reintegrate into the community. The goal is that capital flows must reach the right subjects, promptly, safely, and truly become a fulcrum to help people rise up.”

The cooperation between banks and organizations and unions has been creating a solid foundation for the journey of sustainable poverty reduction and advanced new rural construction in Dong Nai.

In the coming time, the Dong Nai branch of the Vietnam Bank for Social Policies will continue to strengthen the operations of credit organizations, expand lending to the right subjects, increase safe and sustainable credit growth and promote the application of technology in management. At the same time, Dong Nai province will prioritize the implementation of a number of key solutions such as: timely disbursement of loan programs for poor households, near-poor households and policy beneficiaries, ensuring that people have access to capital when they have legitimate needs. Promote social housing loans, helping workers and low-income people have conditions to settle down and stabilize their lives. Create conditions for loan disbursement for people who have completed their prison sentences, support them to reintegrate into the community, have the opportunity to work and rebuild their lives. Review and supplement resources to meet the increasing demand for loans, especially in remote areas and ethnic minority areas. Strengthen coordination with authorities at all levels, ensuring that preferential capital flows are strictly managed, used effectively and properly.
purpose.

Le Duc

Source: https://baodongnai.com.vn/xa-hoi/202512/von-chinh-sach-diem-tua-vung-chac-trong-hanh-trinh-thoat-ngheo-9630621/