Vietnam regional economic development and credit support

Vietnam is utilizing preferential credit programs to foster economic growth and poverty reduction across various provinces. In highland regions such as Lao Cai and Da Nang, ethnic minority communities and cooperatives are using policy-based credit to transition from subsistence farming to large-scale production and high-value processing, such as cinnamon essential oils for export.

In Lao Cai province, specifically within Phinh Ho commune, residents are increasingly cultivating medicinal plants and specialty crops to improve livelihoods and protect forests. Local statistics show over 570 hectares dedicated to high-value crops, including hawthorn, cardamom, and purple cardamom, which contribute to sustainable poverty reduction.

In Son La province, Arabica coffee has evolved from a land-greening crop into a primary agricultural commodity. The province has expanded its Arabica cultivation area to over 44,000 hectares, producing nearly 51,000 tons of coffee beans annually, making it the largest Arabica growing region in Vietnam. To meet international market demands, the province is shifting focus from expanding acreage to improving quality, deep processing, and establishing sustainable production chains through cooperatives.

In Vinh Long province, similar credit strategies are being applied to support rural livelihoods, particularly for women, by enabling investments in livestock and sustainable agricultural models. Additionally, the province is focusing on strengthening its private sector, which is dominated by small and medium-sized enterprises, through administrative reforms and efforts to address capital and infrastructure bottlenecks.