Policy credit boosts early-year growth and supports local livelihoods

Funds directed to areas of greatest need

Since the beginning of the year, the provincial VBSP branch has instructed its transaction offices to step up the implementation of policy credit programs, ensuring that capital is disbursed promptly, particularly for programs supporting production, business development, job creation, and better living conditions.

As of February 28, 2026, the branch’s total capital reached VND 18.84 trillion, up VND 538 billion from the start of the year, or 2.94%. Of the total, entrusted capital from the local budget accounted for VND 2.23 trillion, up VND 107.5 billion, or 4.9%.

Disbursement activities have been significantly intensified. In the first two months of the year, total lending exceeded VND 1.077 trillion, benefiting 19,343 households. Outstanding loans reached over VND 18.78 trillion for 286,825 borrowers, an increase of more than VND 489.7 billion from the beginning of the year, equivalent to 73.3% of the assigned credit growth target.

Several transaction offices recorded high completion rates of their growth plans, including Krong No (93.31%), Bac Binh (88.26%), Dak G’Long (87.33%), and Ham Thuan Nam (84.13%).

The effectiveness of policy credit is especially evident in times of hardship. At the end of 2025, historic heavy rains combined with flood discharge from Song Luy Reservoir caused severe losses for Mr. Lu Van Truong in Binh Hoa Hamlet (Bac Binh Commune), when floodwaters swept away three of his cattle—his family’s primary source of income.

Shortly afterward, he was able to access a VND 100 million loan from a post-flood recovery program. He used the funds to restock his herd, which has since grown to seven healthy cattle, offering renewed hope for his family’s economic recovery.

According to Ms. Le Thi Trang Oanh, Director of the VBSP Transaction Office in Bac Binh, once the floodwaters receded, the unit coordinated with local authorities and mass organizations to assess the damage and provide timely support. Within a short period, more than 310 households received loans totaling over VND 23 billion to restore production.

In practice, when disbursed promptly and to the right beneficiaries, policy credit serves not only as financial support but also as a “lifeline,” helping many families overcome adversity and regain stability.

Improving credit quality, ensuring sustainability

Alongside expanding its credit portfolio, the Lam Dong VBSP branch has placed strong emphasis on improving loan management quality.

The branch currently maintains 329 transaction points across 124 communes, wards, and special administrative area, along with 6,427 savings and loan groups. This extensive network helps bring preferential credit closer to residents, particularly in rural and ethnic minority areas.

After each commune-level transaction session, transaction offices and headquarters review and evaluate the performance of savings and loan groups, promptly addressing any shortcomings. For hard-to-recover loans, the branch works with local authorities to review, classify, and propose appropriate solutions.

In 2026, the Lam Dong VBSP branch aims to achieve at least 11.07% growth in outstanding loans compared to 2025 and fulfill 100% of the credit targets assigned by the central government. The branch also targets mobilizing over VND 350 billion in local capital, up 13.5% year-on-year. At the same time, the branch aims to maintain credit quality by keeping overdue and rescheduled debts below 0.2% of total outstanding loans and ensuring that more than 96% of savings and loan groups are rated good or strong.

Through targeted, timely, and well-managed credit programs, Lam Dong continues to leverage policy finance as a strategic tool—supporting livelihoods, strengthening resilience, and driving inclusive, sustainable development.