Beyond loans veterans turn capital into sustainable livelihoods
After leaving the military many veterans have turned timely access to credit into a springboard for building productive businesses creating jobs and continuing to contribute to their communities
Many veterans-turned entrepreneurs begin their economic models with minimal capital, yet see an increase in production needs. The Danang Veterans Association (DVA) and Vietnam Bank for Social Policies (VBSP) have a lending program that extends beyond merely providing capital. It involves screening eligible borrowers, approving loans, monitoring fund use, and organizing training and technical transfers to ensure the loans are used effectively and generate significant impact.
The DVA currently has an outstanding loan portfolio of $112.2 million from the program, servicing 38,616 borrowers with a near-zero overdue loan ratio of 0.04 percent. This reflects the quality of the credit portfolio and the sustainability of the lending model. Le Trung Chinh, deputy head of the DVA, stresses the importance of transparent screening to ensure loans reach the right beneficiaries, and collaborating with relevant agencies to provide training and technical guidance.
The model's success is evident in individual production models, where the loan's value is measured not just by repayment capacity but by the changes it brings to the borrowers' livelihoods. Nguyen Ngoc Son, a former military member, borrowed $4,000 in 2021 to renovate his garden, grow pepper and fruit trees, and develop livestock production.
His family now owns 1.5 hectares of fruit trees, 300 chickens, two buffaloes, and three hectares of acacia forest, generating over $5,200 in annual income. Son's loan has not only improved his family's income but also shared his production experience with other local households.
Another example is Nguyen Trinh, a member of the DVA in Huong Tra Ward. He borrowed $2,000 in 2023 to start a seedling nursery covering over 3,000 square meters, and added his own capital to install an automated irrigation system. The model now has a capital of about $24,000 and supplies hundreds of thousands of seedlings to the market each year, generating stable annual income of $4,000-4,800 and providing employment for two workers and seasonal jobs for five others.
Both models started with modest loans and were successful due to the borrowers' acquisition of knowledge, selection of suitable investment directions, and gradual expansion of production.
Written by urgent.news from Vietnam Investment Review's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
