The programme was carried out under the Government’s Decree 78/2002/ND-CP issued in October 2002 on credit for poor households and policy beneficiaries.
In 2017, the transaction office of the Vietnam Bank for Social Policies in mountainous Khanh Vinh district has expanded its coverage to all 14 communes and towns of the locality, creating favourable conditions for poor people and policy beneficiaries to access the credit.
So far, more than 6,200 households, or 70% of the total households in Khanh Vinh, mostly poor families and those from ethnic minority groups, have benefited from the programme with VND168 billion (US$7.39 million).
Nguyen Thi Ngoc Ly from the office said that the office has coordinated with socio-political organisations to bring the capital to the needy to help them develop their production, thus increasing their income.
Among 13 credit programmes that the bank is running in Khanh Hoa, the programme targeting the poor is a focus in an effort to reduce poverty in a sustainable manner.
Each household can borrow maximum VND50 million (US$2,200).
So far, the programme has lent VND1.6 trillion (US$70.4 million) to more than 11,000 households, raising the total outstanding balance to VND267 billion.
Meanwhile, the programme offering credit to households living close to poverty line have benefited 18,000 households with VND425 billion.
The capital has helped the beneficiaries improve their production, apply new technologies and increase value of their products.
The bank’s credit has risen 20 times over that in 2003, reaching over VND2.22 trillion. It also aims to access all poor households and policy beneficiaries in Khanh Hoa.