Opening a way out of poverty thanks to preferential credit capital in the mountainous areas of Lao Cai

Borrowing capital to motivate people to escape poverty

In Bo Lung village, Ban Lau border commune, Mr. Sung Khoa Lang's family (born in 1968) has been a poor household for many years. Previously, the whole family only relied on a few sao of rice fields, after the rice crop, the corn crop came, but all year round there was shortage, and children's education was unstable.

In 2025, implementing the National Target Program on Sustainable Poverty Reduction, the State will support each household with 60 million VND to build houses, replacing temporary and degraded houses, in which Mr. Lang's family is also eligible for support.

Along with about 100 million VND saved over the years, he borrowed more money from relatives, preferential credit from policy banks and then boldly built a spacious house.

From here, family members have a stable place to live, work with peace of mind, and develop their economy to escape poverty.

We here sell our land all year round, our backs to heaven, but poverty is haunting us all the time. In 2025, thanks to receiving support from the state and policy banks, we want to build a solid house as a place to live and then focus on economic development.

Currently, when the house is gradually finished, the family is also extremely excited because they have escaped the temporary house situation. In the coming time, the whole family can feel secure in doing business, aiming to escape poverty and have food and provisions," said Mr. Sung Khoa Lang.

Sharing with Lao Dong - Mr. Ma Van Ac (head of Bo Lung village) said that thanks to timely support programs, many households in the village have borrowed additional policy capital to have spacious houses. Along with that, people borrow to make an economy, giving them more motivation to escape poverty.

Tens of thousands of people are supported

According to the report of Lao Cai Provincial Social Policy Bank, by July 31, the total policy credit capital reached VND 11,292 billion, the total outstanding debt reached VND 11,273 billion, with 159,186 customers still in outstanding debt.

Policy credit capital has supported 32,280 poor households, near-poor households and other policy beneficiaries.

In just 7 months, this capital has contributed to creating jobs for 7,538 workers; building nearly 20,000 clean water projects, rural sanitation; supporting 123 workers to work abroad.

In particular, the program to eliminate temporary and dilapidated houses disbursed more than 133 billion VND, helping thousands of households have spacious shelters.

It is known that Lao Cai province currently has 319 commune-level transaction points, ensuring that people in remote areas also have access to capital sources conveniently, publicly and transparently.

In the remaining months of 2025, the provincial Social Policy Bank will expand access to capital for poor households and policy beneficiaries, promote digital transformation, improve the efficiency of loan use, and contribute to promoting socio-economic development.

In the mid-August results assessment session, Mr. Ngo Hanh Phuc - Vice Chairman of the Provincial People's Committee, Head of the Representative Board of the Board of Directors of Lao Cai Provincial Social Policy Bank - said: "In the context of merging provinces and perfecting the administrative apparatus, the Social Policy Bank has soon stabilized its organization, maintained the transaction network, and ensured capital safety.

Policy capital has truly become an important pillar in the fight against hunger, poverty reduction, and improving the standard of living for people, especially ethnic minorities.

According to Mr. Ngo Hanh Phuc, the banking industry needs to continue to improve the quality of operations of Savings and Loan Groups, prevent bad debts, and strengthen inspection and supervision.

At the same time, promote digital transformation, to ensure capital reaches the right people, for the right purposes and brings practical results.