Bringing policy capital to the people

Policy credit capital in recent times has contributed to helping poor households and policy families in the old Phu Yen area improve their lives. From 2020 to now, policy capital has reached the right target, contributing to reducing the poverty rate by an average of 4%/year, by the end of 2024, the poverty rate will be only 18%.

Since the beginning of July 2025, when the two-level local government model began operating, the Phu Yen Social Policy Bank Transaction Office has signed a cooperation program with 8 new communes; stepped up propaganda and dissemination of the Party's policies and the State's preferential credit policies to the people. Along with that, coordinating with the Commune Party Committee to direct entrusted organizations and unions to help farmers, women, veterans, union members and youths to borrow preferential loans to develop production and business. In addition, the bank continues to guide borrowers to use capital for the right purpose and promote the effectiveness of policy capital.

Phu Yen Commune Center.

The Phu Yen Social Policy Bank transaction office has proactively researched and rearranged the most convenient transaction points for people to conduct transactions. Currently, 8 communes in the Phu Yen area still maintain over 15 transaction points suitable to the specific conditions of the locality. At the same time, strictly implement the process: Receive the list of borrowers from the communes; assign staff to the grassroots to appraise and guide households to prepare loan applications...

Based on voting and screening of loan applicants at grassroots savings and loan groups, those in need of loans will be selected for loans, minimizing the possibility of policy capital not reaching the right beneficiaries. After receiving loans, poor households and policy families are guided to use the loan for the right purpose. During that process, there is community supervision in using the loan for the right purpose.

Monthly trading session in Phu Yen commune.

Mr. Cam Hai Dang, Director of Phu Yen Social Policy Bank Transaction Office, said: In recent times, the source of loan capital has changed significantly: The proportion of capital from the Central Government has decreased, while the local budget capital entrusted through Phu Yen Social Policy Bank Transaction Office has increased. Currently, the unit is implementing more than 30 loan programs for many target groups, with preferential interest rates ranging from 3-9%/year.

The total outstanding debt of 8 communes currently reaches over 700 billion VND, with about 15,000 poor households having access to loans. The review results show that 100% of the borrowers used the loan for the right purpose, the bad debt ratio is very low, only 0.03%. Thanks to this preferential capital source, many households have had the conditions to develop production and escape poverty.

Currently, Tan Phong commune has more than 300 poor households and policy families receiving preferential loans from the Phu Yen District Social Policy Bank Transaction Office, with a total outstanding loan balance of nearly 100 billion VND. Mr. Cam Vinh Tri, Chairman of the Commune People's Committee, said: Policy capital is an important condition to help people gradually escape poverty. Therefore, the commune has coordinated with the bank to strengthen propaganda, helping people access loan policies. Most households borrow capital to create jobs and develop afforestation. Thanks to that, up to now, the commune has more than 200 workers with new jobs, the planted forest area has been expanded to 500 hectares, creating a stable source of income. This is an important driving force to help the commune reduce the poverty rate by an average of 4% per year.

Transaction Office staff guide Phu Yen commune officials to review procedures to support people in borrowing capital.

For Mr. Hoang Van Doc, Khoa 2 village, Tuong Ha commune, the journey to escape poverty and have a decent income is closely linked to policy loans. In 2019, he received a loan of 50 million VND from the Phu Yen District Social Policy Bank. He used 45 million to buy 3 cows, the remaining amount to plant grass and build a barn. Mr. Doc shared: I raised cows in the form of fattening, by 2022 I had sold the cows for a good price and paid off all the bank debt. After that, I continued to borrow 100 million VND to expand the herd to more than 30 cows and solidify the barn. Thanks to that, the family economy gradually stabilized, currently earning about 120 million VND per year.

Cow raising model of Khoa 2 village people, Tuong Ha commune.

It can be seen that credit policy capital has been helping poor households with difficulties in capital sources in Phu Yen area to have conditions for economic development to escape poverty and ensure social security in the area.

Source: https://baosonla.vn/kinh-te/dua-nguon-von-chinh-sach-den-voi-nhan-dan-YtBiEMqNg.html