Ngo Truong Thi, deputy head of the Social Support Department said the new policies were to try and overcome the shortcomings of Programme 135. The aim, he said, is to cut the number of poor households to under 30 percent.

According to the Ministry, 797 communes mainly in the northern mountainous provinces of Ha Giang, Lao Cai, Yen Bai, Son La, Lai Chau and Dien Bien have 70 percent of households living under the poverty line. 

Under the new policies, the state will raise its total investment in 61 districts under programme 135 to VND22.47 trillion. Specifically, each commune will get VND1.5 billion a year compared to the VND800 million of the original plan. The state will also annually give each commune VND500 million to set up a Community Development Fund.

Instead of simply letting people borrow money, the programme will also create chances for poor people to be trained in vocational centers. During that time, they will be provided accommodation, food and other necessities.

Vu Huy Tuan, chairman of the Kon Plong District People’s Committee in Central Highland Kon Tum Province said there was no use “lending them VND2 million as they would keep it in their wardrobes because they had no idea of how to use it or for what. If there are any training courses, they should be suitable for poor-educated people.”

Complicated procedures will also be simplified to boost the pace of project implementation, said Thi.

Specifically, ratifying the design of projects and cost estimations will be the responsibility of district-level authorities instead of higher ones.

Programme 135’s goal of building hospitals, schools and other infrastructure will be achieved by adjusting the prices of materials and labourers to cope with inflationary pressures on the market.

The draft has been submitted to Prime Minister Nguyen Tan Dung.