The establishment and operation of Village Savings and Loans Association (VSLA) – Solidarity for mutual development

In the framework of the project “Mitigating and adapting to climate change in the agriculture and forestry sector of the Northwestern highlands (VM070)”, between March 23^rd 2021 and April 1^st 2021 the project was promoting the establishment of 8 village savings and loan associations (VSLA) in 8 project villages of Nam Lau and Chieng Pha communs with the participation of 273 households (including 106 poor and near-poor households, more 86% of the members are women).

This model will help the poor and near-poor households to create savings habits, to be proactive, willing to contribute and to share their savings to develop a small source of capital in the community to assist one another in the development of cultivation and breeding activities such as repairing livestock sheds, buying seedlings of breeds, supporting education investment for their children.

“The model introduced by the project is very effective and suitable for the people in the villages. It also gives women a savings to support one another in production and daily life; to strengthen solidarity among them.” – Hoa, a member of Savings group in Nga Phat village, Chieng Pha commune shared at the meeting.

Along with savings and loans, VSLA is a forum for women to exchange production experiences, to share feelings, to assist in economic development, to increase the role and voice of women and the spirit of solidarity and mutual support in the community through social activities.

After its establishment, the members of 8 VSLAs immediately started saving. At the first meeting of this activity, the total amount of savings was 15,300,000 VND which 17 poor and near-poor household could lend between 500,000 VND and 1,350,000 VND to buy seedlings, fertilizers and to pay school fees. Besides that, 8 VSLAs also mobilized 2,135,000 VND for the social funds to use for the community activities.

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