Through close coordination in propaganda, reviewing needs, assessing loan applications, and monitoring the use of capital, many households have had the opportunity to invest in economic development and improve their lives.

In recent years, VBSP has become an important support for members of the provincial Veterans’ Association in the journey of economic development and sustainable poverty reduction. Through the entrustment mechanism, Veterans’ organizations at all levels in the province have closely coordinated with VBSP to bring preferential capital to the grassroots level, ensuring members access capital conveniently and according to their needs. To date, the total outstanding loan entrusted through the provincial Veterans’ Association reached VND 1,222 billion with 13,054 borrowing households. Thanks to these resources, many economic models of the members have created jobs for 18,455 laborers, bringing stable incomes.

As of June 30, the entire province still had 2,004 poor member households (10.66%), a decrease of 3.57%; the number of near-poor households remained at 1,268 (6.74%), a decrease of 1.39% compared to 2022. The rate of well-off and wealthy households reached 45.26%, affirming the correct direction in linking policy credit with the provincial Veterans’ Association’s emulation movement for production and business. Sharing about the effectiveness of the capital, Vi Văn Thoa, a veteran in Mường Nhé commune, said: “If it weren’t for the preferential loans and the enthusiastic support from the association cadres and the bank, my family would have difficulty expanding production. The capital helped us boldly invest, rise up out of poverty, and our lives are increasingly improving.”

To deliver preferential loan capital to the right beneficiaries and promote effectiveness, VBSP Transaction Office officials in all areas always strive to overcome many difficulties regarding terrain and working conditions. The staff proactively surveyed each area, seeking appropriate lending models suitable to the specific characteristics of each village. At the same time, the bank strengthens coordination with local governments and socio-political organizations in the province such as: Women’s Union, Farmers’ Union, Veterans’ Association, and Youth Union to deploy entrustment activities, helping people access capital more quickly and conveniently. Thanks to these flexible solutions, VBSP capital has supported many households in expanding production and improving income, contributing to promoting the goal of sustainable poverty reduction and ensuring social security. Lò Văn Bình, a resident of Lĩnh village (Mường Pồn commune), shared: “Thanks to the thoughtful guidance of the cadres, my family boldly borrowed capital and used the loan effectively, and our lives are becoming better.”

VBSP’s preferential loan capital has also become an important driving force helping the people of Chiềng Sinh commune develop their economy, raise income, and stabilize their lives. According to the report, by the end of the first 9 months of 2025, lending turnover reached VND 38,520 million with 502 customer visits; debt collection turnover reached VND 9,513 million. The total outstanding loan currently exceeds VND 130 billion, corresponding to 1,893 customers. The overdue debt rate is low, only 0.34% (VND 454 million) and frozen debt (VND 8 million), showing relatively stable capital utilization efficiency. Entrustment work through 4 socio-political organizations continues to be effective, with the total outstanding loan accounting for 100% of the total outstanding loan in the commune.

Đỗ Văn Sơn, Chairman of the Chiềng Sinh commune People’s Committee, said: “Thanks to the close coordination between the local government and VBSP, preferential capital has been delivered to the right beneficiaries who have needs and are eligible to borrow. This not only creates conditions for people to invest in production but also contributes to sustainable poverty reduction, promoting the stable socio-economic development of the commune.”

For preferential loan capital to truly reach the people and be effective in practice, VBSP identifies the important role of entrusted mass organizations and Savings and Loan Groups (SLGs). These are the “extended arms” that help the bank promptly grasp borrowing needs, inspect and monitor the use of capital, and support residents in accessing credit policy conveniently, transparently, and according to regulations. Therefore, VBSP has focused on closely coordinating with the Women’s Union, Farmers’ Union, Veterans’ Association, Youth Union, along with Party committees and local governments to enhance the effectiveness of management and deliver capital to the right beneficiaries.

One of the key solutions deployed by the bank is organizing professional training classes for the Management Boards of the SLGs in communes and wards. Through training, the groups are guided and fully updated on new regulations and professional procedures, including: lending, debt collection, and interest collection procedures; methods of loan capital management; skills in record-keeping and book management; and skills in propaganda and mobilization of borrowing households to use capital for the correct purpose and repay debt on time. The process of evaluating borrowing households, classifying SLGs, and credit risk prevention measures are emphasized to ensure the operation of each group becomes increasingly professional and effective.

Nguyễn Thị Bích Thủy, Deputy Director of the provincial VBSP Branch, affirmed: “Periodic professional training for the Management Boards of SLGs is a practical activity, contributing to enhancing loan management capacity, ensuring policy credit capital reaches the right beneficiaries, and promoting effectiveness in reality. This is an important factor helping to achieve sustainable poverty reduction and promoting local socio-economic development…”.

Grassroots Party committees, local governments, and socio-political organizations continue to coordinate in propaganda, inspection, and monitoring of borrowing and repayment activities, thereby raising the awareness of the people in using capital for the correct purpose. The efforts and flexible, effective methods have been creating a solid foundation for the State’s preferential capital to be effective, contributing to ensuring social security, promoting the people’s lives to increasingly improve, and achieving sustainable development.