Điện Biên: Preferential credit loans drive poverty reduction

ĐBP - Low-interest loans from the Vietnam Bank for Social Policies (VBSP) have become a powerful tool in the fight against poverty across Điện Biên province. Through various policy-based credit programs, thousands of poor and near-poor households, along with other vulnerable groups, have gained access to capital to launch production, create jobs, and improve their income.

Since gaining access to these preferential loans, many families in the remote district of Mường Nhé have found a pathway to sustainable poverty reduction. The story of Vừ Bả Dế’s family is a prime example of how social policy credit can create real, lasting change.

Once a poor household with many children, Dế’s family in Huổi Đanh village, Mường Toong commune, lived off subsistence farming and struggled to make ends meet. In 2017, he was approved by the local savings and loan group to borrow VND 50 million through VBSP’s program for poor households. He used the loan to buy a breeding buffalo and took the initiative to attend livestock care training courses. Within three years, the buffalo gave birth to three calves, which he later sold for nearly VND 60 million. Thanks to that income, his family officially escaped poverty in 2022.

Preferential credit has enabled Dế’s family and many others in Huổi Đanh village to raise buffaloes and cattle successfully.

Determined to further improve his livelihood, in 2024, Dế borrowed an additional VND 100 million under the near-poor household program and VND 200 million under the job creation program to expand his livestock model. Today, his family owns over 10 buffaloes and cows, along with a well-built barn, grazing fields, and a dedicated area for growing elephant grass to feed the animals.

“I’m truly grateful to have access to these loans from VBSP to develop our family’s economy”, he shared. “Now, we have a stable income, a better home, and a much-improved quality of life. I hope more organizations will support others in our village to boldly access these funds and escape poverty.”

Khoàng Thị Nghiêm, a Women’s Union member in Vằng Xôn village, Nậm Khăn commune (Nậm Pồ district), also turned her life around with a preferential loan. After years of struggling to make ends meet, in 2025, she bravely borrowed VND 100 million under the program for production and business in disadvantaged areas. With skilled hands and support from the local women’s union, she started a traditional embroidery business. Her model not only provides steady income for her family but also creates jobs for other local women, becoming a trusted economic initiative for the community’s Women’s Union.

The Nậm Khăn Women’s Union actively coordinates with the local VBSP branch to deliver preferential loans to members.

In Phìn Hồ village, Phìn Hồ commune (Nậm Pồ district), Cháng A Vênh’s family once faced constant financial hardship with no capital to invest in production. After joining local community activities and being introduced by the Youth Union, Vênh secured a VND 50 million loan from the program supporting poor households. He used the money to purchase three breeding buffaloes and invest in poultry farming. As the family’s financial situation improved, in 2024 he borrowed another VND 100 million to expand his farm. His family has since risen to become one of the more well-off households in the village.

“Thanks to the preferential loan, our lives have changed significantly”, shared Vênh. “My children can attend school regularly, and I’ve gained the motivation to work harder without worrying about food or basic needs anymore.”

Families like those of Dế, Nghiêm, and Vênh exemplify how preferential loans have empowered poor and near-poor households to develop sustainable livelihoods and break free from poverty. Across Điện Biên, many households have made effective use of these funds to gradually improve their living conditions. The VBSP has proven itself a vital link connecting government credit policy to those in need.

As of May 31, the total outstanding balance of social credit programs at VBSP Điện Biên reached VND 5,272.359 billion, an increase of VND 260.775 billion compared to the end of 2024. Notably, loans for poor households alone accounted for VND 1,738.551 billion, the largest share of total lending, supporting 30,098 clients. This underscores the bank’s strong focus on the most vulnerable groups.

In Hua Thanh commune (Điện Biên district), residents use VBSP loans to develop livestock farming.

VBSP also disbursed VND 763.779 billion in loans to near-poor households (an increase of VND 60.528 billion) and VND 370.496 billion to households newly lifted out of poverty. These programs play a crucial role in helping families rise above the poverty threshold, stabilize their lives, and build stronger household economies.

In addition, VBSP continues to prioritize practical programs such as job creation loans (VND 640.856 billion in outstanding debt), business support in disadvantaged areas (VND 944.384 billion), clean water and rural sanitation loans, and housing support for poor families. Since the beginning of the year, the bank has served over 12,783 borrowers, a testament to the high demand and strong public trust in the government’s preferential credit policies.

These achievements highlight the essential role of VBSP Điện Biên in supporting poor, near-poor, newly non-poor households, and other disadvantaged groups. Moving forward, the bank aims to accelerate disbursement, simplify loan procedures, and improve credit quality to contribute to sustainable poverty reduction and rural development in this mountainous province.

Quang Hưng
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