The Transformative Impact of Preferential Credit in Tam Hai Commune, Da Nang: Part 2: Empowering Sustainable Coastal Livelihoods

At Tam Hai Commune in Da Nang City, the sea is more than a source of livelihood - it is a way of life, a cherished tradition and a legacy passed down through generations. As marine resources evolve and the fishing industry changes, local households are adapting their livelihoods to meet new realities. Throughout this transition, VBSP's preferential credit programme has provided fishing families with timely financial support to sustain traditional occupations, diversify their livelihoods where needed, and build more resilient and sustainable coastal livelihoods.

A quiet moment of rest for Tam Hai fishermen after returning from sea

Staying with the Sea by Adapting, Not Leaving

For more than six decades, Mr. Pham Minh Tung of Thuan An Village, Tam Hai Commune, has made his living from the sea. In his younger years, he joined long-distance fishing voyages that sometimes reached the waters around the Truong Sa (Spratly) Islands. For him, the sea is far more than a source of income - it is a way of life, a treasured memory and an enduring part of the island community's identity.

As he grew older, however, offshore fishing became increasingly demanding. Rather than leaving the fishing industry behind, Mr. Tung chose to adapt. He invested in floating fish cages, upgraded his fishing gear and combined nearshore fishing with aquaculture to diversify his income and reduce financial risks. Yet turning this plan into reality required capital that his family simply did not have.

"Building a fish cage is only the beginning", Mr. Tung explained. "It can take six to ten months before harvest. During that period, we still need boats, engines, fishing gear, feed, daily care and enough income to support our families".

He hopes to access a larger preferential loan - between VND 200 million and VND 300 million (approximately USD 7,700-11,500) to expand his operation and invest in modern aquaculture equipment. Despite his age, Mr. Tung remains optimistic. "We may grow old, but the sea never does", he said with a smile.

His words reflect the aspirations of many fishing families in Tam Hai. While the sea remains central to their lives, sustaining their livelihoods today requires new approaches. Better fishing equipment, safer vessels, improved aquaculture technologies and more efficient production methods have become essential. Without affordable access to capital, even experienced fishermen with strong determination face difficulties in upgrading their livelihoods.

Mr. Tung's story is shared by many households across the island. Before preferential credit became available, families often relied on informal lenders charging high interest rates whenever they needed to invest in production. Today, VBSP's preferential credit programme offers a safe and affordable alternative, enabling borrowers to purchase fishing vessels and equipment, develop cage aquaculture, expand the farming of high-value seafood species such as spotted babylon, and diversify their production activities.

As a result, many households have escaped poverty, steadily improved their living standards and, in some cases, generated annual profits of several hundred million Vietnamese dong.

Preferential credit does not replace people's hard work or entrepreneurial spirit. Instead, it provides the essential foundation that allows borrowers to invest with confidence. Through affordable financing, the support of entrusted socio-political organizations, the guidance of Savings and Credit Groups and close community oversight, local experience and determination are transformed into sustainable livelihoods and lasting economic opportunities.

New Fish Cages, New Opportunities

While Mr. Tung represents an older generation of fishermen adapting to changing conditions, Mr. Le Huynh Xuan Dai illustrates how younger people are choosing to return home and build their future around the sea.

After spending several years working in Binh Duong Province and later in Malaysia as an automobile mechanic, Mr. Dai decided to return to Tam Hai. His decision was motivated not only by a desire to be closer to his parents but also by his confidence in the untapped potential of aquaculture in the Truong Giang River estuary.

In 2023, he obtained a VND 100 million (approximately USD 3,850) preferential loan from VBSP to invest in HDPE floating cages for off-season aquaculture.

The investment reflected careful planning. Compared with traditional wooden cages, HDPE cages provide greater durability and allow fish to be raised throughout the winter months. This enables farmers to supply the market during the off-season, when prices are generally higher.

After more than two years, Mr. Dai has already repaid VND 60 million of the loan principal, together with all interest due. More importantly, his family's income has become increasingly stable, creating the financial capacity to pursue further investments.

For Mr. Dai, the loan represented much more than access to capital. It gave him the confidence to return home, start a business and build a future in his own community.

Mr. Le Huynh Xuan Dai's aquaculture farm in Tam Hai Commune, developed with support from VBSP's preferential credit programme

What stands out in Mr. Dai's story is not only his entrepreneurial success but also his long-term vision. Rather than focusing solely on expanding his own business, he hopes to learn from well-established aquaculture models in provinces such as Phu Yen and Khanh Hoa and apply those experiences in Tam Hai. His ambition is to help transform the commune's aquaculture sector into one that is more modern, better organized and more competitive.

According to Mr. Ho Tung Chinh, Chairman of the Tam Hai Commune Farmers' Union, Mr. Dai's success has created a positive ripple effect throughout the community, inspiring more young people to return to their hometown, invest in local opportunities and embrace new approaches to developing the marine economy.

From Mr. Tung's reflection that "We may grow old, but the sea never does", to Mr. Dai's investment in modern HDPE fish cages, one message becomes clear: the sea around Tam Hai continues to offer abundant opportunities. The challenge lies in ensuring that local people have access to the capital, technical knowledge and confidence needed to seize those opportunities.

Throughout that journey, VBSP's preferential credit programme has remained a quiet yet steadfast partner, providing not only affordable financing, but also helping island communities build more resilient livelihoods, strengthen the local marine economy and pursue sustainable development for generations to come.

Duc Kien