Improving Livelihoods through Preferential Credit

Over the years, policy credit funds have played an important role in creating jobs, expanding production, increasing incomes, and improving the quality of life for rural residents across Tay Ninh Province.

Mr. Nguyen Trung Thao (left) obtained a loan of VND 100 million (approximately USD 3,900) from VBSP to convert low-yield rice-growing land into vegetable cultivation

Mr. Nguyen Trung Thao’s family (in My Thanh Commune) owns 2,000 square meters of rice-growing land. After deducting all expenses, the family earned only about VND 7 million (approximately USD 270) per year. Recognizing the growing consumer demand for home-grown vegetables, he decided to switch to organic-oriented vegetable cultivation. However, he lacked the financial resources needed to improve the soil, install irrigation systems, and purchase fertilizers and seeds.

Mr. Thao recalled: “When the Commune Women’s Union learned about my plan to convert low-profit rice land into vegetable cultivation, they advised me to apply for a VND 100 million (approximately USD 3,900) loan from the VBSP Thu Thua Transaction Office. The loan procedures were simple, with no collateral required. In particular, the monthly savings contribution of VND 2 million (approximately USD 80) was suitable for my family’s income. Without the support of the Women’s Union and VBSP, my family would not have been able to make the transition, and our financial situation would have remained difficult”.

With timely support from local authorities and organizations, Mr. Thao gained greater confidence and motivation to expand production, increase his income, and improve his family’s living standards. Today, after deducting all expenses, his family earns around VND 7 million (approximately USD 270) per month. In addition to his diligence and hard work, his success stems from producing according to market demand. On his 2,000-square-meter plot, he grows a variety of crops, including sweet corn, bottle gourd, bitter melon, green beans, and squash, which he sells directly at local markets instead of through intermediaries.

Ms. Nguyen Thi Phuong Thao, Chairwoman of the My Thanh Commune Women’s Union, said: “Demand for home-grown and safe vegetables continues to increase, and Mr. Thao’s produce is often insufficient to meet market demand. By intercropping various vegetables, he can sell them more easily and at prices VND 3,000-5,000 (USD 0.12-0.20) per kilogram higher than the market average. His family has overcome financial hardship and is now considered one of the better-off households in the locality”.

In the low-lying flood-prone area, rice cultivation generated only modest returns. Therefore, more than 20 years ago, Mr. Nguyen Van Tam, also from My Thanh Commune, switched to cultivating water mimosa. Although his farm covers just over 2,000 square meters, it provided sufficient income to cover his family’s daily living expenses.

However, in recent years, increasingly unpredictable weather conditions and disease outbreaks caused the complete loss of his water mimosa crop. With his primary source of income gone, the family faced significant hardship. Mr. Tam shared emotionally: “We spent everything we earned and had no savings, while re-establishing the crop required tens of millions of dong. Just as I was struggling to find a solution, the VBSP Thu Thua Transaction Office approved a loan of VND 80 million (approximately USD 3,100). I used the funds to rehabilitate the field and purchase seedlings and fertilizers. Today, the crop is growing well, and after deducting all expenses, my family earns around VND 7 million (approximately USD 270) per month”.

Mr. Thao and Mr. Tam are not isolated cases. Thousands of rural households have received timely support through VBSP’s preferential credit programs. For many disadvantaged families, these loans have served as a vital lifeline, providing both financial assistance and encouragement during difficult times.

Ms. Nguyen Thi Minh Nguyet, Director of the VBSP Thu Thua Transaction Office, said: “The unit is responsible for four communes and townships: My An, My Thanh, Thu Thua, and Tan Long. To ensure policy credit reaches the right beneficiaries in a timely and adequate manner, our staff always work with dedication and responsibility. During the first four months of 2026, the VBSP Thu Thua Transaction Office provided loans totaling more than VND 81 billion (approximately USD 3.2 million) to over 1,500 poor households and other policy beneficiaries. These loans enabled borrowers to invest in production and business activities while supporting social welfare objectives. Policy credit has made an important contribution to local economic development, job creation, sustainable poverty reduction, and the development of new-style rural areas”.

Le Ngoc