Can Tho, Vietnam – For nearly three decades, the family of Le Thi Phuong Thao in Long Phu commune has adapted to changing economic realities. Beginning around 2013, they transitioned to aquaculture, growing from a small-scale operation into a 3-hectare farm, supplemented by an additional 2 hectares of leased land. Today, the Thao family cultivates shrimp, snakehead fish, catfish, and is even experimenting with tilapia, harvesting shrimp twice and fish once annually. This diversification, coupled with access to preferential credit lines, has not only stabilized their livelihood but also created employment opportunities in a region focused on agricultural development.
The story of the Thao family exemplifies a growing trend in Vietnam: the strategic use of accessible credit to unlock economic potential and generate jobs, particularly within the agricultural sector. A recent push by the Vietnamese government, through initiatives like the job creation loan program, aims to provide crucial capital to small and medium-sized enterprises (SMEs) and individual farmers, fostering sustainable growth and reducing unemployment. This approach is particularly vital in the Mekong Delta region, where agriculture remains a cornerstone of the economy.
In the past two years, the Thao family has actively improved their farming practices, adopting VietGAP standards and integrating microbial cultivation techniques to enhance product quality and promote sustainable development. A key component of this progress has been access to affordable loans. In June 2025, they secured a loan of 630 million Vietnamese Dong (VND) – approximately $24,500 USD based on current exchange rates – through the job creation program. “My family uses the loan primarily to purchase feed for the shrimp and fish farming,” explains Thao. “By paying in cash, we significantly reduce costs compared to buying on credit, increasing production efficiency by over 20%.”
Expanding Access to Capital for Rural Businesses
The benefits extend beyond the Thao family’s farm. The loan program isn’t just about increasing production; it’s about providing stable employment. The Thao’s operation now provides regular work for around 15 people, increasing to approximately 20 during peak season, with average monthly earnings of 7 million VND (roughly $270 USD) per worker. Tran Van Dien, who has worked on the farm with his wife for four years, highlights the stability the job provides. “Before this, our jobs were insecure,” he says. “Since working here, we have a regular monthly income. The work is quality, the income is secure, and the owner provides accommodation. That’s why my wife and I feel safe and are committed to working here long-term.”
According to Trinh Bich Tuyen, Deputy Director of the Can Tho branch of the Vietnam Social Policy Bank (SPB), the bank has been actively collaborating with various levels of government, sectors, and media outlets to disseminate information about these credit programs. Since the beginning of 2026, over 13,100 customers have received a total of 1.012 trillion VND (approximately $39.3 million USD) through the job creation loan program. More than 50% of these outstanding loans have been directed towards the agricultural sector, demonstrating the government’s commitment to supporting rural economies. Currently, two production and business establishments have outstanding loans totaling 1.13 billion VND, supporting 20 jobs.
New Regulations Expand Loan Eligibility and Amounts
Recent changes to regulations, specifically Decree No. 338/2025/ND-CP, have further broadened access to these crucial funds. The decree outlines increased loan limits: up to 200 million VND for individual entrepreneurs, 10 billion VND for production and business establishments, and a maximum of 200 million VND per employee for job creation, retention, and expansion. The maximum loan term is 120 months, with the specific duration determined by the SPB based on the borrower’s repayment capacity and available capital. The interest rate is set at 127% of the current rate for loans to low-income households, with a default interest rate of 130% of the current applied rate. These adjustments aim to empower small businesses, cooperatives, and artisans to invest in machinery, expand operations, and hire more workers.
The SPB in Can Tho is accelerating the review and disbursement of loan projects to ensure swift implementation of Decree No. 338/2025/ND-CP. Capital is being channeled through socio-political organizations and savings and credit groups at the commune and ward levels, under the supervision of local authorities. This approach ensures transparency in the application process, reaches the intended beneficiaries, and addresses actual needs. Post-disbursement monitoring is also in place to provide timely support, help borrowers overcome challenges, and improve capital utilization efficiency.
Through the employment loan program, social funds have stimulated investment in production and business, creating and maintaining over 122,000 jobs in the region and contributing to a reduction in the unemployment rate. The SPB monitors the effectiveness of these loans by tracking the proper use of funds, effective investment in production and business, and timely repayment of principal and interest.
Challenges and Future Implementation
Tieu Minh Duong, Deputy Director of the Department of Labor, Invalids and Social Affairs in Can Tho City, emphasizes the practical significance of the 2025 Employment Law and the new regulations regarding job creation loans for production and business establishments. The policy aims to facilitate access to preferential capital for small businesses, cooperatives, and individual traders, enabling them to maintain and expand operations, create more jobs, and contribute to local economic development and social security. However, he acknowledges that some businesses still face difficulties accessing information and developing loan plans, and remain uncertain about required documentation and collateral. “It is necessary to intensify communication, counseling, and concrete guidance to facilitate access to this policy for businesses,” Duong stated.
The Department of Labor plans to collaborate closely with the Can Tho branch of the SPB, relevant departments, authorities, and local agencies to disseminate information, provide guidance, assess credit needs, and promptly address any difficulties encountered during implementation. This collaborative approach is crucial to ensuring the effective and practical application of the new regulations.
The success of initiatives like the Thao family’s aquaculture farm demonstrates the potential of targeted credit programs to drive economic growth and improve livelihoods in Vietnam’s rural communities. As the SPB continues to refine its approach and address implementation challenges, these programs are poised to play an increasingly important role in fostering sustainable development and creating opportunities for Vietnamese citizens.
The next key step in this process is the ongoing training of local officials, scheduled to continue throughout 2026, to ensure they are equipped to effectively guide businesses through the loan application process. Further updates on the program’s impact and disbursement figures will be released by the SPB on a quarterly basis.
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