Hồ Văn Nguy, a local of Pa Kô ethnicity in Hướng Hóa District, is one of the beneficiaries of social policy loans. — VNA/VNS Photo Nguyên Linh

QUẢNG TRỊ — In Đakrông and Hướng Hóa districts, where the majority of the population is of ethnic minorities, multiple households’ livelihoods have seen significant progress thanks to preferential loans for social policies.

Hồ Văn Thương, a resident of Đakrông District is one of the beneficiaries.

With a loan of VNĐ100 million (US$4,200), he invested in growing six hectares of Melaleuca trees and six buffalos, which have brought him a stable income.

Thương said: “Thanks to the State preferential loans, our family invested in growing Melaleuca trees and raising buffalos. We also managed to send our son to work abroad in Japan.

“Our family is now out of poverty with financial stability, with an annual income of about VNĐ120 million ($5,000).

“We have a savings account, and bought a motorbike. Next year, we will build a new house.”

Thương’s neighbour Hồ Văn Cua also benefits from these loan policies.

Cua’s family now has 10 buffaloes and five hectares of Melaleuca tree forest, which brings in on average more than VNĐ100 million per year.

Cua said: “Thanks to the loans for economic development, our family now has buffalos and a forest. Using this capital and working hard, we are no longer afraid of hunger or poverty.”

In Hướng Hóa District, with a loan of VNĐ80 million ($3,400) and guidance from the local branch of the Việt Nam Bank for Social Policies (VBSP), Hồ Văn Nguy has built his own goat farm on Sa Mù Mountain.

In addition to the herd of 30 goats, his family also grows forest and raise cows, which brings in a profit of over VNĐ100 million per year.

With the family’s financial conditions improved, they voluntarily withdraw from the list of subsidised poor households.

More than 14,200 local households have financial stability thanks to preferential loans from Việt Nam Bank for Social Policies. — VNA/VNS Photo Nguyên Linh

Thái Ngọc Châu, chairman of Đakrông District People’s Committee, said that the preferential loans from the VBSP have brought practical results.

Thanks to this source of capital, numerous households have been able to expand their agricultural production and improve their income sources, which contributes to poverty reduction in the localities.

Châu added that there is a significant demand for loans, as well as for increasing the loan limit and extending criteria for eligible borrowers.

According to Hà Sỹ Đồng, deputy chairman of Quảng Trị Province People’s Committee, with the joint efforts and determination of all levels of authorities, the Party and the VBSP, many people of ethnic minorities have improved their financial conditions and are on the way to sustainable poverty reduction.

Their material and spiritual well-being have also seen progress, he added.

Đồng also recommended that social credit policies for ethnic minorities and people in the mountainous areas need continuous innovation and upscaling in terms of loan limit and borrower eligibility, especially in business-production projects, contributing to sustainable livelihoods of the people.

Trần Đức Xuân Hương, VBSP’s Quảng Trị branch director, said that there are currently 12 preferential credit programmes in the locality for ethnic minorities.

As of November 30, there are 14,240 ethnic minority households who have secured a loan, with a total amount of VNĐ580 billion ($24.5 million).

Hương said that the borrowers have been effectively using their loans and paid the due amounts on time.

The province’s credit capital for social benificiaries is also on the rise, with various financial resources mobilised to respond to the needs for loans of disadvantaged people.

In the future, the Quảng Trị Province’s VBSP branch will continue to provide loans on time and effectively to support programmes for ethnic minorities, especially those under Decree No. 28/2022/NĐ-CP on preferential credit policies, in the implementation of the national target programme on socio-economic development in communes and hamlets of ethnic minorities and in mountainous areas in the 2021-30 period. — VNS