Policy credit provides lifeline for disadvantaged families in Dong Nai

After completing a prison sentence, the son of a woman identified as N.T.T. in Binh Phuoc Ward received career counselling and assistance from local authorities and neighbourhood officials in accessing a policy loan to create employment opportunities. The family was subsequently granted a policy loan of 70 million VND (about 2,700 USD) to start a woodworking business. Other carpentry households in the neighbourhood also shared their skills and experience to help the family establish the trade.

Officers at the Binh Phuoc Social Policy Bank Transaction Office guide local residents through policy loan application procedures.

The family is among many in Dong Nai that have benefited from preferential credit programmes aimed at generating employment, supporting education and improving household incomes.

More than 214,000 households access policy loans

According to the Dong Nai branch of the Vietnam Bank for Social Policies (VBSP), more than 214,000 households across the city are currently benefiting from policy credit.

Vo Trong Hoa, Deputy Director of the branch, said outstanding policy loans total more than 13.7 trillion VND, with the average loan standing at 64 million VND per household. The loans have been used for a wide range of purposes, including livestock farming, crop cultivation, upgrading machinery, purchasing materials for handicraft production and small businesses, as well as financing children's education. Since the beginning of 2026, the city's policy credit programmes have disbursed nearly 3 trillion VND to almost 44,000 borrowers.

According to the Dong Nai branch of the Vietnam Bank for Social Policies, of the total outstanding loans total 13.7 trillion VND, nearly 4.89 trillion VND has been provided to households in urban areas. Meanwhile, more than 8.81 trillion VND has been disbursed to rural households.

Surveys conducted by the Dong Nai VBSP branch, its transaction offices and entrusted socio-political organisations show that most borrowers have used the loans effectively. Since the beginning of the year, policy credit has helped create jobs for more than 16,500 workers, enabled 19,300 households to improve their clean water supply and sanitation facilities, and provided financial support for about 1,800 students to continue their education.

Meanwhile, overdue and frozen debts account for only 0.15% of the city's total outstanding policy loans, placing Dong Nai among the localities where overdue and frozen debt ratios are below the national average.

Expanding access to preferential credit

These loans are provided without collateral. Based on each household's borrowing needs and verification by the local government, the VBSP considers and approves disbursement. With interest rates lower than those offered by commercial banks, this preferential credit has enabled many families to develop livelihoods, invest in their children's education and build homes, thereby gradually improving their lives.

Officers from the Binh Phuoc Social Policy Bank Transaction Office conduct an on-site survey at the home of a policy loan recipient.

To further strengthen the effectiveness of policy credit, Vo Trong Hoa said the bank and its transaction offices would continue working closely with commune- and ward-level People's Committees and entrusted socio-political organisations during the remainder of 2026 to review local borrowing demand and ensure timely disbursement for eligible borrowers. The bank would also accelerate customer data digitalisation and ensure the security and smooth operation of its digital platforms, with the goal of completing the 2026 state budget credit disbursement target by September 30.

In addition, the Dong Nai City VBSP Branch and its transaction offices will coordinate with local authorities and entrusted organisations to continue reducing the bad-debt ratio and improve the quality of policy credit operations, particularly among savings and loan groups that continue to face operational shortcomings. The Vietnam Fatherland Front and its member organisations at all levels will continue to strengthen supervision of policy credit activities.

Nguyen Ngoc Thao An, Chairwoman of the Vietnam Fatherland Front Committee of Tran Bien Ward, said supervision had found that many borrower households had not fully complied with policy credit regulations. She stressed that improving loan application procedures and conducting thorough assessments of borrowers would help ensure that preferential credit is used effectively and reaches those who need it most.

By Van Truyen-Translated by Mai Nga, Minho