Policy capital supports poverty eradication in Phan Lam.

Thanks to preferential loans from the Government channeled through the Social Policy Bank (NHCSXH), hundreds of ethnic minority households in Phan Lam commune, Bac Binh district, have been supported, contributing to poverty alleviation and prosperity.

Phan Lam is one of the most underdeveloped and disadvantaged mountainous communes in Bac Binh district. While it has a large natural land area, agricultural land is scarce due to its mountainous terrain and poor transportation infrastructure. Over 80% of the commune's population belongs to the Rac Lay ethnic group, with the remainder being K' Ho, Cham, Kinh, Nung, Hoa, Chau Ro, ChuRu, Chil, Tho, and Giao. Population density is uneven, education levels are low, and infrastructure is limited. Living standards remain low, with an average income of only about 36 million VND per person per year, and the poverty and near-poverty rate is nearly 40%. Therefore, while providing preferential credit to the people is difficult, ensuring its effective use is even more challenging. However, with the government's investment and support, for many years now, people have been able to access various loan sources, with preferential loans from the Vietnam Bank for Social Policies (VBSP) serving as a driving force for production development and poverty reduction in this locality.

The Trinh Thi Dinh household, formerly a near-poor household, has now escaped poverty thanks to preferential loans from the Social Policy Bank.

A typical example is the household of Mr. Huynh Van Dung, in self-governing group No. 6 of the commune, one of the poor and near-poor households in the group, facing difficulties due to a lack of capital for economic development. In 2022, he accessed preferential loans for poor households from the Social Policy Bank, amounting to 50 million VND, which his family invested in raising cattle – a breed of cattle native to Binh Thuan province, accustomed to the local climate. From the initial 3 cows purchased for 45 million VND, the herd has now grown to 4.

Similarly, the household of Trinh Thi Dinh in Self-Management Group No. 1, formerly near-poor, has now escaped poverty thanks to preferential loans from the Social Policy Bank. Five years ago, Ms. Dinh's household borrowed 30 million VND to invest in cattle, just like Mr. Dung's household. Starting with a pair of cows, they have now produced 3 calves, bringing the total herd to 5. Her family plans to sell one cow to build and renovate their house and invest further in livestock farming and crop cultivation. With their diligent nature and willingness to learn from experience in livestock farming, their cattle herd has developed very well. Every month, her family pays the bank interest on time and has no outstanding debt. They hope to borrow a larger amount when the principal repayment is due to continue investing in livestock farming and crop cultivation, thus achieving a more prosperous life.

Mr. Mang Nhu, Chairman of the People's Committee of Phan Lam commune, said: "In recent years, preferential credit has proven to be a powerful 'lever' of the Party and State in implementing the national target program on poverty reduction, job creation, ensuring social security, and making a positive contribution to socio-economic development in the area. These credit programs have effectively met the needs of poor households and policy beneficiaries for preferential capital, giving them the opportunity to improve their lives. To help people effectively utilize the borrowed capital, Party committees and authorities have guided people on what crops to plant and what livestock to raise, and encouraged them to apply scientific and technical advancements to production." The commune is encouraging people, especially poor households, to focus on changing the structure of crops and livestock, such as developing cattle farming and planting citrus fruit trees. Currently, the commune is implementing 12 policy credit programs with more than 380 poor and near-poor households and other policy beneficiaries receiving loans, with a total outstanding debt of over 17 billion VND through 7 savings and loan groups. In particular, the credit program for poor and near-poor households, clean water and sanitation... alone disbursed over 560 million VND in loans in the third quarter of 2023.

It can be said that, through policy loans, ethnic minority people in Phan Lam have been developing and exploiting the strengths of the commune, bringing about economic efficiency, stable income, improving living conditions, and gradually rising out of poverty.

Source