A breakthrough in policy credit in Dien Chau

Hand over the fishing rod.

Regularly, on the 21st of each month, the Social Policy Bank of Dien Chau district conducts transactions at the Dien Ngoc Commune People's Committee. From early morning, Ms. Pho Thi Thi, head of the women's loan group in Ngoc Minh hamlet, Dien Ngoc commune, arrived at the commune's People's Committee transaction point to deposit savings (over 15 million VND) from the households under her group's management into the Social Policy Bank. Ms. Thi said that her group manages 57 members with a total capital of 1.643 billion VND, mainly borrowed by residents for the clean water program, investment in fishing gear, machinery and equipment, and building kiosks for selling groceries… Since receiving loans from the Social Policy Bank, the lives of the members have become increasingly stable and prosperous.

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Throughout their production and business activities, members consciously save on expenses and deposit the money into the Policy Bank. This not only saves for themselves and their families but also contributes to the government's poverty reduction efforts, increasing the capital available for lending to the poor and other policy beneficiaries.

Ms. Pho Thi Thi - Head of the women's loan group in Ngoc Minh hamlet, Dien Ngoc commune.

Dien Van is a coastal commune facing many difficulties. In the past, the people mainly relied on fish and salt for their livelihood. However, visiting Dien Van today, the rural landscape has changed. Along the Bung River, many multi-story houses stand close together. The people here are engaged in commercial production and livestock farming, linking it with the development of small-scale industries and the cultivation and processing of seafood.

Visiting the family of Mr. Tran Dinh Quyen in Dong Ha hamlet, Dien Van commune, we found his wife busy with her wholesale grocery business, while Mr. Quyen focused on deer farming and shrimp farming. In 2015, with a 50 million VND loan approved from the program for loans to households engaged in production and business in disadvantaged areas, Mr. Quyen began building enclosures and buying a pair of breeding deer. Thanks to proper farming techniques, the deer grew quickly and reproduced rapidly, increasing in number. At one point, the deer enclosure housed up to 16 deer.

Besides selling deer antlers, his family has also become a reliable supplier of deer breeding stock to the local people. The profits from deer farming are then used to invest in whiteleg shrimp ponds. Mr. Quyen said that, with the local policy of encouraging the conversion of inefficient agricultural land into aquaculture, he has converted his land to shrimp farming. Currently, he sells 2.5 to 3 tons of commercial shrimp per harvest. Deer and shrimp farming brings his family over 200 million VND per year, providing them with the means to support their children's education.

In Dien Chau district, there are many effective economic models thanks to loans from the Policy Bank. Visiting Dien Lien commune, we were amazed by the integrated farming model of Mr. Duong Van Khieu and Ms. Phan Thi Hue in Hamlet 3, Dien Lien commune. As a near-poor household, in 2019, the family received a 50 million VND loan to invest in fish farming. After repaying this loan, they were approved for an additional 100 million VND loan. With this money, the family expanded their fish ponds to 4 hectares; planted fruit trees such as jackfruit, pomelo, and sapodilla; and raised chickens and ducks, bringing them an annual profit of over 200 million VND.

Thanks to diligent learning and hard work, the farm is thriving, producing a variety of seasonal produce that is very pleasing to the eye. “We sell our products as soon as they are harvested thanks to the effective application of digital platforms for product promotion and advertising. During harvest season, whether it's fish, poultry, or fruits from the garden, I post on Facebook, Zalo, and TikTok along with my phone number so people know about it and can contact me in advance if they need anything. Since applying technology, our family's agricultural products sell much faster, and we've gained new loyal customers. We hope to continue borrowing from the Policy Bank to expand our livestock production and develop a sustainable economy,” Ms. Hue shared.

The government is getting involved.

Directive No. 40 is seen as a breath of fresh air, positively transforming social policy credit, making a significant contribution to building new rural areas and changing the face of Dien Chau district. In this process, the Social Policy Bank has accompanied the people, quickly disbursing funds with low interest rates, streamlined procedures, and on-site transactions, providing practical support for many households to improve their lives and achieve stability.

Mr. Nguyen Van Tuan, Director of the Social Policy Bank of Dien Chau District, stated: As the branch with the largest outstanding loan balance in the province, over the 10 years of implementing Directive No. 40-CT/TW, the Social Policy Bank of Dien Chau District has provided loans to 53,261 poor households, near-poor households, and newly-escaped-poverty households with a total loan amount of over 1,837 billion VND, accounting for 81% of the total loan amount for production and business, gradually achieving sustainable poverty alleviation. In addition, capital for social welfare and new rural development reached a loan amount of over 432.2 billion VND.

Thanks to this, over the past 10 years, 75,128 households have received capital for production and business, gradually escaping poverty; 2,888 households have eliminated dilapidated and leaky houses; 49,876 clean water and sanitation facilities have been built to standard; nearly 24,528 disadvantaged students have received loans for their studies; 3,659 workers have received loans to create jobs; and 896 people have gone abroad for work... Social policy credit has significantly contributed to reducing the annual poverty rate in the district from 5.2% in 2014 to 1.66% in 2023.

The results achieved cannot be mentioned without acknowledging the role and involvement of the government at all levels in providing policy-based capital. Mr. Ha Xuan Quang, Secretary of the Dien Chau District Party Committee, said: Dien Chau is a coastal district with a large population and a high demand for loans to develop production and business, especially credit from the Social Policy Bank.

To effectively implement Directive No. 40-CT/TW and Directive No. 29 dated June 17, 2015, of the Provincial Party Committee on strengthening the Party's leadership over social policy credit, we emphasize the role and responsibility of local leaders in grassroots credit work, creating all favorable conditions for the poor and policy beneficiaries to access capital and use loans effectively. Mobilizing resources for social policy credit is also a task that the locality pays attention to. The outstanding policy loan balance in the area is nearly one trillion VND, of which more than 7 billion VND is transferred from the district budget.

It can be affirmed that policy-based loans have become a solid foundation helping poor households, near-poor households, and newly-escaped-from-poverty households in Dien Chau district to cover living expenses, continue investing in production development, improve their living standards, and rise out of poverty to achieve legitimate wealth. This is also an important driving force helping Dien Chau district continue to fulfill the criteria in building advanced new rural areas.