Policy credit improves the quality of life on Ly Son

April 29, 2024 | 09:00
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Thanks to Vietnam Bank for Social Policies' (VBSP) lending schemes for disadvantaged areas, many households on the island of Ly Son in Quang Ngai province have capital to invest in activities such as seafood farming, animal husbandry, farming, shops, and homestay services. As a result, the lives of many on the island have drastically changed for the better.
Policy credit improves the quality of life on Ly Son

In Dong An Hai hamlet, Mai Thi Nhieu, spoke of how her family struggled for many years to make ends meet. In 2020, she received VND100 million ($3,945) from VBSP for near-poor households and job creation. She decided to invest in land restoration to plant garlic and onions.

"Thanks to our hard work and the rising prices of Ly Son garlic and onions, our family’s quality of life has significantly improved. Our children can pursue education and settle down in Ho Chi Minh City. By the start of last year, we had escaped poverty to become a well-off household in the area," said Nhieu.

Meanwhile, Tran Hung, a resident of Dong An Vinh hamlet, explained what it meant to obtain VND50 million ($1,972) from VBSP in 2019 to invest in fish farming, in particular cobia. After some trial and error, he has now increased the number of fish cages from 5 to 21, and improved his family’s income substantially.

"Without access to preferential capital, it would be impossible for my family to build a solid economic foundation," he added.

Tran Van Nam, director of the VBSP branch in the Ly Son district, said, "Households in Ly Son have experienced many difficulties. However, their lives have significantly changed thanks to greater access to preferential capital to invest in their businesses."

By the end of last year, the lending turnover of the VBSP branch in Ly Son had reached VND138 billion ($5.44 million), up VND19 billion ($749,654) from the beginning of the year and fulfilling the year’s projections. Total outstanding loans stood at VND137 billion ($5.41 million) last year.

As of present, the VBSP transaction office in Ly Son has disbursed loans to over 2,270 households and 980 workers as part of the lending scheme, supporting job creation and economic expansion. 134 households have escaped poverty sustainably.

To improve access to capital resources, the Ly Son branch signs the entrusted contracts with 56 Savings and Credit Groups (SCG). SCGs have actively mobilised and safely transferred capital to each household. The groups also perform an important role in monitoring and supervision, guiding borrowers to use capital efficiently to pay debts and interests in full and on time.

In addition, the branch unlocks capital sources and promptly disburses capital and revolves credit. This is coupled with marketing and promoting the scheme and assigning each credit officer to support households in the locality.

Alongside its timely implementation of such policies, VBSP has channelled its resources for the appropriate purposes to improve the material and spiritual lives of the Ly Son people. Policy credit capital has helped hundreds of poor households and other policy beneficiaries on the island escape poverty to become well-off, and contributing to protecting the local environment.

Le Van Ninh,Vice Chairman of Ly Son People’s Committee, said, "Over the past few years, policy credit has made a significant contribution to the socioeconomic development of the locality. The poor, near-poor, and policy beneficiaries have gained access to preferential capital to expand their production and businesses, thereby improving household income and wiping out black credit on the island."

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