Preferential loans create opportunities to escape poverty for ethnic minorities and mountainous areas

After more than a year in effect, Government Decree No. 28/2022/ND-CP on preferential credit policies for implementing the National Target Program for socio -economic development in ethnic minority and mountainous areas for the period 2021-2030 has had a positive impact on beneficiaries in the province.

In the final days of the year, we had the opportunity to accompany officials from the Social Policy Bank to visit households that had received loans and used them effectively in Cuc Phuong commune, a mountainous area with the largest ethnic minority population in Nho Quan district. Here, preferential loans have helped the people develop many effective economic models.

The family of Mr. Dinh Van Hung (of the Muong ethnic group) in Sam 2 village, Cuc Phuong commune, is one of the first households to receive loans from the National Target Program for socio-economic development in ethnic minority and mountainous areas according to Government Decree No. 28/2022/ND-CP dated April 26, 2022.

According to Mr. Hung, his family is classified as a poor household, and although he and his wife work as laborers year-round, they still don't have enough money to make ends meet. In October 2022, through the Savings and Loan Group of Sam 2 village, his family learned about preferential loans from the Program and were facilitated by the Nho Quan District Branch of the Social Policy Bank to borrow 100 million VND to change professions.

"The preferential loan helped my family buy four cows. To date, the cows have reproduced, and our family's herd now has 12 cows worth over 200 million VND. I am very happy because thanks to this loan, my family has stable employment and has risen out of poverty sustainably," said Mr. Hung.

Preferential loans create opportunities for ethnic minorities and people in mountainous areas to escape poverty. — Mr. Dinh Van Hung, from Sam 2 village, Cuc Phuong commune, harvests elephant grass to feed his herd of cattle.

Ninh Binh currently has 7 communes in Nho Quan district, located in ethnic minority and mountainous areas, that benefit from preferential treatment under Decree No. 28. The majority of ethnic minorities in these localities have limited agricultural land and housing space, and their lives remain difficult.

The Provincial People's Committee has directed relevant agencies, units, and localities to focus on effectively implementing Decree 28. The Provincial Branch of the Social Policy Bank has coordinated with relevant departments and agencies, entrusted political and social organizations, People's Committees at all levels, and Savings and Loan Groups to promote the dissemination of information about loan policies supporting land, housing, production land, vocational training, and production development along the value chain so that people, cooperatives, and businesses are aware of and implement them.

Direct the Nho Quan District Branch of the Social Policy Bank to coordinate with the District People's Committee, relevant departments, agencies, and units to review and compile the loan needs of eligible beneficiaries, ensuring transparency and avoiding overlap, abuse, and profiteering.

Based on that, the District People's Committee approved the list of eligible beneficiaries for preferential loan policies as stipulated in Government Decree No. 28/2022/ND-CP. To date, the Nho Quan District Branch of the Social Policy Bank has disbursed nearly 3 billion VND to 30 ethnic minority households. All borrowers have used the loan funds for their intended purpose and effectively.

Mr. Pham Duc Cuong, Director of the Social Policy Bank's provincial branch, said: "The Decree is practical and humane, demonstrating the concern of the Party and the State for ethnic minorities and people in mountainous areas. The preferential credit policy is welcomed by the people with the hope that low-interest loans with long terms will help them quickly improve their conditions regarding production land, residential land, housing, and career chuyển đổi…"

To continue effectively implementing the lending policy under Decree 28, in the coming period, the Social Policy Bank branch will coordinate with associations and organizations to strengthen the dissemination and promotion of the Party and State's policies on social policy credit to members and all strata of the people; encouraging the poor and policy beneficiaries to boldly borrow capital for production and business, striving to escape poverty and achieve legitimate wealth.

Regularly inspect and monitor the implementation of policies by entrusted units, improving the efficiency of loan capital. Direct the Nho Quan District Branch of the Social Policy Bank to coordinate with localities to continue effectively reviewing and compiling the loan needs of eligible beneficiaries, and advise on submitting the list of beneficiaries for approval as a basis for timely loan assessment.

Based on the results of the review and compilation of loan needs, the Provincial Branch of the Vietnam Social Policy Bank will continue to report to the Vietnam Social Policy Bank to allocate funds to promptly meet the needs of policy beneficiaries in the area.

Text and photos: Hong Giang

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