Policy credit capital makes strides in poverty reduction in Điện Biên

ĐBP - Điện Biên province has a population of over 80% from ethnic minorities, facing challenging living conditions and a high poverty rate. The lack of production capital, insufficient livelihood tools, and outdated farming practices are barriers that make poverty reduction efforts in the region quite challenging. In this context, policy credit capital has played an essential role in promoting sustainable poverty reduction.

In 2018, Ms. Thào Thị Pày from Tỉnh B village, Sáng Nhè commune, took a bold step by borrowing VND 30 million from the Vietnam Bank for Social Policies to improve 1 hectare of underproductive farmland, transitioning it to planting acacia, pine, and eucalyptus trees. Along with planting, she expanded her livestock farming with nearly 30 pigs, 2 buffaloes, 4 cows, 15 goats, and 300 black chickens. Additionally, her family planted 1 hectare of hybrid corn, 0.5 hectares of rice, utilized a 600m2 pond for fish farming, and 1,500m2 for vegetables. Thanks to this diversified model, after expenses, her family earned a stable income of VND 150-170 million annually. To date, her family has successfully escaped poverty and risen to a middle-income level.

Ms. Pày said: “With the capital, I dared to invest in forestry and livestock farming, which has proven effective. Now my family has savings, and my children have the opportunity to go to school.”

Not only does the policy credit support impoverished households, but it also helps many newly-escaped-poverty families maintain and expand their production, preventing them from slipping back into poverty. For example, Mr. Cháng A Dũng’s family in Long Dạo village, Si Pa Phìn commune, borrowed VND 50 million in 2022 to develop a passion fruit cultivation and pig farming model. After two years, his family had a stable income, and in 2024, they voluntarily applied to exit poverty. In 2025, they accessed further loans for machinery to support production. As a result, their economic situation continues to stabilize and improve.

Ms. Thào Thị Pày from Tỉnh B village, Sáng Nhè commune, takes care of her flock of chickens, funded by policy credit. Photo: C.T.V.

One key factor that makes policy credit effective in Điện Biên is the mechanism for implementation through the grassroots political system. From the province to communes and villages, there has been a synchronized effort, especially through savings and loan groups at the grassroots level. Through these groups, the capital is directed to the right people for the right purposes, with strict supervision to minimize misuse. Organizations such as the Farmers’ Association, Women’s Union, and Youth Union play a significant role in raising awareness, guiding members on borrowing, and using the funds effectively.

From 2021 to 2025, policy credit loans have reached 395,000 poor households and other policy beneficiaries in Điện Biên, with a total outstanding loan balance of nearly VND 5,000 billion. As a result, 66,000 poor households have escaped poverty, more than 23,000 new jobs have been created, nearly 22,000 students from disadvantaged backgrounds have been able to continue their studies, over 23,000 rural water and sanitation projects have been built, and almost 17,000 houses have been built for poor households.

However, there are still challenges in implementing policy credit in the province. The vast geographical area and dispersed population make it difficult to monitor and supervise the use of funds effectively. Some borrowers lack the necessary production and business knowledge, leading to low efficiency or, in some cases, misuse of the funds. In response, Điện Biên has decided to link policy credit with the transfer of technical knowledge, vocational training, and production guidance to ensure that people use the funds effectively and avoid falling back into poverty. Many localities have proactively formed partnerships between banks and businesses or cooperatives to create agricultural value chains, ensuring stable output for farmers.

In the future, Điện Biên aims to continue maximizing resources, prioritizing funding for border communes and ethnic minority areas, which are particularly disadvantaged, while also expanding effective production models. It will focus on improving the performance of savings and loan groups, enhancing the role of local party committees, governments, and organizations in managing, supervising, and supporting residents; creating conditions for people to rise on their own and take control of their lives.

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