{
  "id": 10571590,
  "title": "Policy credit builds sustainable livelihoods from the grassroots",
  "url": "https://urgent.news/2026/09/29/policy-credit-builds-sustainable-livelihoods-from-the-grassroots",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-29T00:48:04.000Z",
  "source": {
    "name": "Vietnam Investment Review",
    "slug": "vietnam-investment-review",
    "url": "https://vir.com.vn/policy-credit-builds-sustainable-livelihoods-from-the-grassroots-161741.html"
  },
  "original_language": "en",
  "account": "In 2022, Nguyen Van Quoc of Tan Hoa commune in the Mekong Delta province of Vinh Long took out a $1,600 loan from the Vietnam Bank for Social Policies (VBSP) to buy five goats and improve housing facilities. When his method proved successful, he borrowed an extra $800 with the help of family contributions, increasing his herd to eight breeding does, one buck, and four meat goats. After about 15 months, the family sold over 20 kids, earning a profit of around $2,400, a 60-70 percent return. Quoc opted for a sustainable farming method, utilizing the land around his home to grow grass and feed the goats with naturally available foliage like banana plants, sesbania leaves, and jackfruit leaves, supplemented with bran, corn, and other nutritional feed.\n\nAnother household in Tan Hoa commune saw a similar success story. Kim Ngan borrowed $600 to purchase a breeding cow. From her initial investment, the family expanded the herd to 10 head while repaying the loan in full. The family now manages 10 cows, showcasing how a modest loan can serve as the foundation for a thriving production model.\n\nThese examples illustrate how small-scale loans can act as the initial capital for production systems. Borrowers begin with a model that aligns with their land, labor, and financial capacity, then reinvest the profits generated by the production process. VBSP's policy credit program is a significant driver of job creation, with outstanding loans totaling $6.5 billion as of June 30, comprising 35.8 percent of the bank's total policy credit. In the first half of the year, policy capital supported production and business investment, creating employment for nearly 487,000 workers. Overall, policy credit reached $18.17 billion, serving more than 6.7 million customers with loans.\n\nVBSP's approach extends beyond mere lending; it focuses on ensuring that capital is directed towards productive activities that generate revenue and income, enabling borrowers to repay loans and sustain their livelihoods. The bank does not solely rely on traditional lending methods; instead, it engages with local communities through communal Farmers' Associations. In Tan Hoa commune, the association manages 24 savings and credit groups, with 1,221 members borrowing from VBSP, and outstanding loans of over $1.72 million.\n\nTo ensure effective capital deployment, VBSP collaborates with these associations to coordinate technical training, maintain cooperative groups, and establish economic models. As of August 31, the Tieu Can Transaction Office held nearly $24.9 million in capital, with lending turnover exceeding $5.8 million and over 3,000 borrower transactions. The Farmers' Association oversees 79 savings and credit groups, with 3,334 households borrowing a total of $6.2 million. With nearly 10,000 transaction points and over 165,000 savings and credit groups across the country, VBSP's grassroots network brings financial services closer to local communities, fostering sustainable livelihoods from the ground up.",
  "summary": "Policy credit is reaching deeper into local communities turning modest loans into productive livelihoods jobs and income while creating a grassroots mechanism for sustainable economic development",
  "key_points": [
    "Nguyen Van Quoc borrowed $1,600 to buy goats, increasing herd to eight with family help",
    "Kim Ngan borrowed $600 for a cow, expanding herd to 10 while repaying loan",
    "VBSP's policy credit supports sustainable livelihoods, creating 487,000 jobs"
  ],
  "editors_take": "The Vietnam Bank for Social Policies' approach to directing capital towards productive activities and collaborating with local communities enables borrowers to generate revenue and sustain their livelihoods, driving job creation and economic growth.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}