Ethnic community in Kon Tum province has a better life thanks to incentives loans from social policy banks. (photo: VOV)

A An Toan of the De Trieng ethnic minority in Dak Glei district, escaped poverty recently. 15 years ago his family was very poor. In his large field he grew only cassavas and rice. Productivity was never enough and his family survived because of rice aid from the State. 

In 2013 he and his wife borrowed 5,000 USD to grow coffee and buy breeding cows. Since then their lives have improved. Their 5 children now attend school and they have a new house. 

A An Toan is now is the richest man in Dak Wak hamlet. He owns 3 ha of coffee and 2 fish ponds, and raises pigs for meat. Each year he sells 200 piglets and 15 tons of pork. Earlier this year he borrowed 34,000 USD to open an animal feed store.

“Loans from the Bank for Agriculture and Rural Development of Vietnam (Agribank) helped my family increase our production and income. I want to set an example for other villagers so we can develop our economy together. When we got an idea, we borrowed money from the bank to realize it. The bank loan helped us expand our business and our profits. We are now able to help other people in the village,” Toan said.

A Le Chuc, Deputy Director of the Agribank branch in Dak Glei district, said that farmers in all 12 local communes have access to bank loans for production and this has helped many families escape poverty. In the past 5 years loans to ethnic minority people have doubled, Mr. Chuc said.

“Agribank’s task is to support the cooperation program of agriculture, farmers, and the countryside. We have increased loans to local farmers, particularly those of ethnic minorities. We invest about 90% of our capital in agriculture and the countryside. People take out bank loans to grow coffee and rubber and raise cows. They now have a stable income.” 

A Klok of Xe Dang group in his coffee farm (photo: VOV)

A Klok of the Xe Dang minority is a role model of economic production in Ngoc Hoi district. 15 years ago he borrowed 21,000 USD to invest in 3 ha of coffee. Then he borrowed more capital to expand his coffee farm to 8 ha. Last year he borrowed 84,000 USD to build a yard to dry his coffee beans. Now he has a stable income and lives in a spacious house. His business employs more than 20 people, and he expects to harvest 120 tons of coffee beans this year.

 “Thanks to the policies of the Party and State on the economic development of ethnic communities in the Central Highlands, I was able to borrow 21,000 USD from Agribank to grow rubber and coffee. After 3 years I harvested and since then we have had a sufficient life,” A Klok said.

Ha Thi Thanh Hoa, Deputy Director of Agribank in Kon Tum, said 80% of the bank’s credit is reserved for the agriculture sector. When ethnic minorities learn how to take advantage of lending sources, they can escape poverty sustainably, Hoa said.

“Agribank of Kon Tum has persuaded district branches to implement the State's policies on agriculture, farmers, and the countryside. We have instituted non-cash payment in remote areas, more convenient banking services, and card products suitable for rural areas.”

In addition to loans, the local administration has helped people use technology to make their production more profitable.