Veterans effectively utilize policy-based credit funds

Local Veterans Associations guide savings and loan groups in organizing and managing records.

Leveraging resources to help members escape poverty.

From a near-poverty household, Mr. Trinh Ngoc Hung (69 years old), a member of the Veterans Association of Ham Thang ward, has become a model of economic development in the locality. A few years ago, his family faced many difficulties, so after being introduced by the Veterans Association, he boldly borrowed 50 million VND from the Social Policy Bank to expand his high-tech vegetable farming area. After 3 years, he repaid the loan and escaped from near-poverty. Building on this initial foundation, he continued to develop a model of growing clean vegetables according to VietGAP standards, and at the same time, he mobilized and gathered members to establish a cooperative, creating jobs for many veterans and their children in the locality. Mr. Hung shared: “The loan capital from the Social Policy Bank is truly a valuable resource for veterans with the will to improve their lives. Thanks to this capital, I have the opportunity to develop production, increase my income, gradually escape poverty, and stabilize my life.”

Mr. Trinh Ngoc Hung is just one of many veterans in Ham Thang ward who have effectively utilized policy-based capital. According to Mr. Luong Hoai Vu, Chairman of the Ham Thang Ward Veterans Association, the total outstanding entrusted loans of the Association currently exceed 24 billion VND through 11 savings and loan groups. To ensure the effective use of capital, the ward's Veterans Association always focuses on inspection and supervision, closely coordinating with the Social Policy Bank and local authorities in loan approval, capital management, debt collection, and guiding members to use capital for the right purposes. As a result, to date, the entire ward only has 4 poor member households, while the number of well-off and wealthy households has increased to over 330.

Not only in urban areas, but also in regions with large ethnic minority populations, policy-based credit is proving to be very effective. In Dam Rong 4 commune, many war veteran association members have risen out of poverty thanks to investments in livestock farming, crop cultivation, and household economies. Mr. Bon Nieng Ha Krong, Chairman of the War Veteran Association of the commune, said that the commune has more than 220 veteran households borrowing capital with a total outstanding debt of over 17 billion VND. All funds are used for their intended purpose, yielding practical results, and repayments are made on time with no overdue debts. As a result, the number of poor veteran households in the commune has decreased from 8 to 2. Many effective production models have been established, contributing to changing the socio-economic landscape of the locality.