Leveraging development from policy-based capital in President Ho Chi Minh's hometown.

Leveraging policy capital

During a trip to Nam Dan district – President Ho Chi Minh's birthplace – this May, tourists are amazed by the simple yet delicious OCOP (One Commune One Product) products such as Thien Nhan lemons, rose wine, kudzu root, lotus tea, soy sauce, and veal sausage... These "highlight" products were developed and promoted with loans from the Social Policy Bank.

At the "Quan Beo" veal sausage production facility of Mr. Le Hai Quan's family in Sen 1 hamlet, Kim Lien commune, his family's products are available in many provinces and cities nationwide, creating jobs for more than a dozen workers with stable incomes. This success for his family stems from a 100 million VND loan from the Social Policy Bank of Nam Dan district's program for near-poor households.

Mr. Quan said: "Thanks to the employment creation loan from the Social Policy Bank, my family has had the resources to invest in machinery and equipment to establish a veal sausage production facility; this has provided us with additional resources to cover living expenses during difficult times and to continue investing in expanding production according to modern trends."

Like Mr. Quan's family, Mr. Tran Van Tra's family in Van Hoi hamlet is currently borrowing 100 million VND from the job creation program to invest in pig farming. Along with applying proper farming techniques, Mr. Tra's pig farm now has over 800 pigs, providing a stable income for his family. The clean water supply system for bathing the pigs and the wastewater treatment system have been built to meet standards, ensuring no negative impact on the living environment of local residents.

The persistent efforts of each resident of Kim Lien commune, like Mr. Quan and Mr. Tra, have created an increasingly developing economic landscape. The total outstanding debt of credit programs in Kim Lien commune has reached 42 billion VND, with 9 credit programs currently being implemented. Through policy-based capital, the commune's poverty rate has been reduced from 4.1% to 0.55% during the 2020-2025 period; 905 poor households, near-poor households, and other policy beneficiaries have received loans to invest in production and business development, serving social welfare.

From a poor rural village, Kim Lien commune has risen and transformed day by day, earning the title of "Heroic Commune of the People's Armed Forces" in 1997 and the title of "Cultural Commune" in 2006. In 2014, Kim Lien commune was recognized by Nghe An province as a commune meeting the standards of a new rural area. Notably, in 2023, Kim Lien commune achieved the standard of a model new rural area and is currently striving to improve the criteria for a model new rural area.

Not only in Kim Lien commune, but also in the district where President Ho Chi Minh was born, people are daily and hourly surpassing themselves in their journey of economic development and improving their lives. Policy credit capital is one of the resources that helps localities build new rural areas and achieve advanced new rural area status.

According to Nguyen Sy Hai, Director of the Social Policy Bank of Nam Dan district: The effective implementation of policy credit programs plays a crucial role in achieving the National Target Program for sustainable poverty reduction, ensuring social security, creating jobs, and building new rural areas; contributing to the goals of economic restructuring, restoring traditional crafts, and developing and expanding OCOP products and services in the area.

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Deputy Prime Minister Tran Hong Ha recently signed Decision No. 921/QD-TTg recognizing Nam Dan district, Nghe An province, as having achieved advanced new rural standards in 2024. By the end of 2024, Nam Dan district will have 18 out of 18 communes recognized as meeting new rural standards (100%); 15 out of 18 communes recognized as meeting advanced new rural standards (83.3%); 7 out of 18 communes recognized as meeting model new rural standards (38.9%); and Nam Dan town recognized as meeting civilized urban standards. Nam Dan district has met 9 criteria according to the set of criteria for advanced new rural districts in the 2021-2025 period. Average per capita income in 2024 is projected to reach 67 million VND; the multidimensional poverty rate is 2.1%.

Pillareconomic development, ensuring social security

Nghe An is a land rich in patriotic and revolutionary traditions, a spirit that has been and continues to be nurtured through the effective implementation of policy funds over the years. In particular, this has been crucial in revitalizing a poor region with a large area and administrative divisions, challenging transportation, and a high percentage of poor and near-poor households and other policy beneficiaries.

Over the years, the Nghe An Provincial Branch of the Vietnam Bank for Social Policies has actively and effectively advised local Party committees, authorities, and the Boards of Directors at all levels on the effective implementation of Directive No. 40-CT/TW and Conclusion No. 06-KL/TW on strengthening the Party's leadership over policy credit, and more recently, Directive No. 39-CT/TW. This includes focusing local resources on entrusted lending to policy beneficiaries through the Vietnam Bank for Social Policies.

By April 30, 2025, the total capital implemented at the branch reached VND 14,071 billion, of which entrusted capital from the local budget reached VND 536 billion, accounting for 3.81% of the total capital. This serves as a foundation for the branch to expand credit support for the poor and policy beneficiaries in 100% of communes and wards in the province, with a total outstanding loan balance of VND 14,053 billion for various policy credit programs.

In addition, the Nghe An Provincial Branch of the Vietnam Social Policy Bank continues to promote the application of digital banking to enhance customer experience and provide mobile banking services with increasingly diverse benefits. Credit quality is not only measured by growth figures but also verified through the compilation of inspection and verification results from various associations and organizations, concluding that loan capital is disbursed to the correct recipients, with 100% of households receiving loans and using the capital for the intended purpose and effectively.

However, to ensure that social policy credit continues to be a pillar of economic development, guaranteeing social security, and propelling Nghe An to progress faster and catch up with the rest of the country in the era of national development, Tran Khac Hung, Director of the Nghe An Provincial Branch of the Social Policy Bank, stated: Funding for the poor and policy beneficiaries remains a challenge for the province. By the end of the first quarter of 2025, most provinces and cities nationwide had completed their annual local budget growth plans; however, the Nghe An branch only achieved 54.3%.

To promote local economic development, Mr. Tran Khac Hung, Director of the Nghe An Provincial Branch of the Vietnam Social Policy Bank, said that the unit will continue to advise the Provincial People's Committee and the People's Committees of districts that have not yet completed the transfer of entrusted local funds to complete the assigned targets in the second quarter of 2025. The unit will also continue to advise the Provincial People's Committee to balance and transfer sufficient provincial budget funds to complete the objectives of the "Policy Credit Investment Project for Poor Households, Near-Poor Households and Other Policy Beneficiaries in Nghe An Province, 2023-2025". Furthermore, it will balance and allocate local budget funds for 2025, entrusted through the Vietnam Social Policy Bank, to provide loans for purchasing or renting social housing, housing for the armed forces, and housing for workers, as directed by the Provincial People's Committee. Proactively advise the Provincial People's Committee to allocate entrusted budget through the Social Policy Bank in the Provincial People's Committee's medium-term public investment plan for the period 2026-2030, ensuring that local budget sources reach at least 15% of the total capital of the Social Policy Bank as per Directive No. 39-CT/TW dated October 30, 2024.

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The branch will also proactively coordinate with local authorities at all levels, entrusted political and social organizations, and relevant units to effectively implement preferential credit policies in the area, disburse funds promptly; closely monitor funds to ensure loans are given to the right recipients, used for the right purposes, and effectively utilized, contributing to helping Nghe An seize the historical opportunity when the Politburo issued Resolution No. 39-NQ/TW, granting it a special mechanism to not only "strive to become a prosperous province" as President Ho Chi Minh once advised, but also, further, to become a modern development model of Central Vietnam in the new development era.

Mr. Tran Khac Hung - Director of the Social Policy Bank Branch in Nghe An Province