Kon Tum (VNS/VNA) - Households of ethnic minorities in theCentral Highlands province of Kon Tum’s Ngoc Hoi district have seen progress intheir material and spiritual well-being thanks to preferential loans throughsocial policies.

Sa Loong commune in Ngoc Hoi district is one of the localitieswith a high percentage of ethnic minorities in Kon Tum province at 85%.

The livelihood of the people here mainly depends on agriculturewith crops such as coffee and rubber. In the past, due to outdated farmingtechniques, the economy of the people here faced many difficulties.

Poor households are eligible for financial and housing support aswell as low-interest loans to invest in their livelihoods, among other forms ofsupport provided by the Government to lift them out of poverty.

In 2010, the poverty rate of the commune was still more than 34%.However, since having access to social policy loans, many households in SaLoong Commune have escaped poverty sustainably.

Y Ho Le, a resident of Sa Loong commune, is one of thebeneficiaries.

With a loan of 50 million VND (2,100 USD), she invested in growingfive hectares of coffee and rubber, which have brought a stable income.

“Our family is now out of poverty with financial stability, withan annual income of about 100 million VND (4,200 USD).”

This income is quite high compared to the average income in NgocHoi district.

"The social policy loan has helped my family escape povertysustainably. It is expected that by the end of 2023, I will be able to pay offall the money borrowed from the bank," Y Ho Le said. “We have a savingsaccount, and bought a motorbike. Next year, we will build a new house.”

Thanks to this source of capital, numerous households have beenable to expand their agricultural production and improve their income, whichcontribute to poverty reduction in the localities, she said.

According to Nguyen Thanh Luong, Vice Chairman of the Sa LoongCommune People’s Committee, with the joint efforts and determination of alllevels of authorities, many ethnic minority members have improved theirfinancial conditions and are on the way to sustainable poverty reduction, withsome households even getting rich.

Luong recommended that social credit policies for ethnicminorities and people in mountainous areas need continuous innovation andupscaling in terms of loan limits and borrower eligibility, especially inbusiness-production projects, which will contribute to sustainable livelihoodsfor the people.

The commune poverty rate has fallen from 34.1% in 2010 to 4.88%now.

Kon Tum is expected to achieve its goal of sustainable povertyreduction from now to 2025 with an annual reduction rate of 3-4%./.