Be more confident in personal development and support other group members

After the introduction by the Project “Reach to Excel phase II: Enhanced Financial Inclusion for Rural Women” and Women’s Union (WU) about the operation modality of the Village Savings and Loan Association (VSLA), Mrs. Ly Thi Niem, Lang Hieu commune, Trung Khanh district realized that this was a suitable and necessary activity for women, helping to generate a saving habit in the family as well as having small capital available for livelihood development or expenditure as needed. Therefore, she proposed to register to join the “Village Savings and Loan Association – VSLA”, and was trusted and elected by the group members to be the group leader. 

When she initially ran the VSLA, she was still confused, shy, and not confident, partly because some women members did not attend meetings sufficiently and on time, and they were not enthusiastic. However, after receiving instructions from the Women’s Union on some skills and methods for managing group activities and technical assistance, she became bolder and more confident in the management and leadership role in the group. 

During the group’s operation, she also learns and proficiently uses the TIZO software application to easily track and capture information about members’ savings, loans, and interest rates. 

Thanks to the guidance of the Women’s Union, she has gained more knowledge and skills and integrated the contents of the women’s movement into the VSLA activities to enrich the meeting’s content. Currently, her group still regularly maintains meetings twice a month and conducts activities according to the Internal Regulations, with 20 member participants. 

Now she feels more self-confident. She knows how to save time, arrange household chores more scientifically, and enthusiastically participate in local and Women’s Union‘s activities, especially she gets into a habit of daily saving and has opportunities to learn and share experiences in production and husbandry; the VSLA group has created a regular loan source for household economic development.

Young staff actively promote digital application in the VSLA group in Ia Boong commune

Ms. Mai Thi My Duyen is not only a capable officer but also an enthusiastic person in the Women’s Union (WU) activities.

Born in 1993, Ms. Duyen has engaged in the WU’s activities since 2020 and has been the Chairwoman of the Women’s Union of Ia Boong Commune, Chu Prong District since April 2020. In November 2020, when the Project “Reach to Excel phase II: Enhanced Financial Inclusion for Rural Women” was launched in Gia Lai province, she was selected as one of the core members of the Village Savings and Loan Association (VSLA) of the province.

Although savings and loans are not new, the VSLA group’s operating method and the digital application in the management have never been implemented in the district. That made it impossible for Ms. Duyen to avoid the initial confusion and concerns. In Ia Boong’s area, it was very difficult to propagate and mobilize women in ethnic minority villages to participate because most of them were very shy and did not dare to participate for fear of being unable to save money every month and their access to the digital application was not favorable including from phone devices to the wifi signal.

With a scientific and responsible manner of working, Ms. Duyen often discusses the problems. After receiving instructions from the Provincial Women’s Union, she quickly and effectively implements the project’s activities in the area.

By the end of Quarter I/2021, in Ia Boong commune, there have been 5/5 VSLAs established with 58 members. Regarding the TIZO system of the VSLA groups, she has supported and installed it by herself, updated it for the first time for the groups, and attended their monthly meetings to provide further support and guidance.

Grow when playing the role of the Group Management Board

In January 2021, at a village meeting, the Commune Women’s Union (WU) and the staff of Project “Reach to Excel phase II: Enhanced Financial Inclusion for Rural Women” introduced the Village Savings and Loan Association (VSLA) activities under this project, supported and implemented by the Central Women’s Union in collaboration with CARE International in Vietnam. Mrs. On was curious, wondering if there were many benefits when participating as introduced. Were any women participating? Did women have monthly savings?…

In April 2021, she boldly registered with the Commune Women’s Union to establish the VSLA group and mobilized other women to join the group. After establishing the group, Mrs. On was trusted and elected by women members to be the group leader.

Initially, local women were not used to saving, the first month’s savings was VND1,200,000. After about 3 or 4 months, the group members got used to it, knew how to save it, and the operation gradually went smoothly. Everyone followed the regulations well, and the meeting duration was very short. By the end of 2021, the Ngoc Binh group’s total savings was VND19,200,000, which was used as loans to 3 women for consumption, livestock development, and immediate financial difficulties.

Mrs. On shared: “Many years ago, the Commune Women’s Union, as well as the Village Communist Party Cell, often encouraged me to join the Party, but I did not agree. After participating in VSLA group activities, I became more confident. In early 2022, I was trusted and introduced to the Party by the Village Party Cell, I then agreed to apply for Party admission. This is a great joy and pride not only for myself but also for my family, new progress in my life.”

She is happy when her work develops smoothly and supports other women in the village to have more capital sources for economic development; thanks to the sharing, group members and WU members become more united and connected, especially saving has become a habit of local women.

Overcome difficulties, build back using the VSLA loans

Mrs. Pham Thi Vong’s family, Gia Hiep commune, Di Linh district, was one of the households implementing the agriculture farm model with the VietGAP pig farming system. They had a total of 20 sows, more than 300 pigs for meat, 100 grafted durian trees, 200 laba banana trees, and some chickens and ducks… Every year, these activities brought the family a good source of income, and they were praised and commended by the local government with the title of good business and production family.

Since her first engagement in VSLA, Mrs. Vong has always been an active group member despite her busy household work. She fully attends all the group’s monthly meetings, in addition, she actively participates in movements and activities of the Women’s Union.

In June 2021, her family experienced an incident when the African swine fever spread forced all of her family’s pigs of over 400 units to be destroyed; within more than a month, all of her family’s savings came to zero (more than VND1 billion loss), and they could not repopulate their pigs due to the epidemic, the pork price went down, and they faced difficulties in investment capital.

While Mrs. Vong was struggling a hard time and did not know how to manage. She was advised and encouraged by the VSLA women, and the group decided to give her a loan of VND8,000,000. She used her existing barn facility, bought 5,000 breeding quails for eggs, and composted quail manure to fertilize durian and laba banana trees. After more than half a year, she now has an income from quails for monthly living, helping stabilize her life.

Mrs. Vong shared, “It was also thanks to joining the VSLA that I could borrow VND8,000,000 to shift into the quail farming model, my family’s difficulties were solved, and life was gradually stabilized”.

Given the results achieved by herself and her family after joining the VSLA group, Mrs. Vong has actively propagated and advocated recruiting 10 new members, totalizing the group size to 41 in the 2022 new cycle. With the increase in members, the amount of money in the saving group has also increased, which has helped many women access loans to invest in production, livestock, and household economic development, contributing to stabilizing their lives.

Boldly replicate the VSLA groups in the Huu Lung district 

Huu Lung is a mountainous district in the South-East of Lang Son province. In the whole district, there are 23 communes and one town; the total number of Women’s Union (WU) members is over 20,000, and the population is over 126,000 from seven ethnic groups. As one of two WU chapters selected by the Lang Son provincial WU to deploy the Village Savings and Loan Association (VSLA) model, Mrs. Pham Thi Thuy, Chairwoman of the Huu Lung District Women’s Union, has actively established VSLA groups in the district.

Realizing the meaning of the VSLA model, which is suitable to the characteristics of a mountainous district like Huu Lung, Mrs. Thuy discussed with members of the District WU to understand the needs of members at the grassroots level to select the unit for effective project implementation.

In 2021, the Huu Lung District WU established 10 VSLA groups in Cai Kinh and Yen Son communes. Since their operation, 10 groups have saved an amount of VND186,720,000 from members’ shares procurement, and loans were granted at the total value of VND162,000,000 which was used to serve their production, business, and consumption; the interest amount earned was VND7,868,000 and VND10,205,000 was mobilized for the mutual support fund.

Based on the effectiveness of the established VSLAs, Mrs. Thuy directed the replication and development of VSLAs outside the project area to have five more VSLAs in Thien Tan commune, making a total of 15 VSLAs in three communes in the district. Thanks to her implementation experience in two Project communes, the propagation and establishment of VSLA groups in the Thien Tan commune were more synchronized and effective. VSLAs in Thien Tan commune saved VND181,700,000 from shares (equivalent to the amount saved by 10 VSLAs in 2 Project communes), and the loan amount was VND154,400,000, to serve members’ production and business, VND8,930,000 was collected for the mutual support fund.

To achieve the above results, Mrs. Thuy and the Executive Board of the District Women’s Union have regularly urged, checked, and organized training for members of the VSLA management boards. At the same time, Mrs. Thuy directly attended meetings with the VSLAs, guiding members in using Tizo software to facilitate their management and effectiveness of group activities.

Use technology to connect members and manage groups more conveniently 

As the Chairwoman of the Women’s Union (WU) in Yen Lap town, Yen Lap district, Mrs. Nguyen Thi Kim Thanh directly participated in and guided the establishment of the Village Savings and Loan Association (VSLA), mobilized and connected ethnic minority women – members of VSLA groups – to unite, save and help each other in daily life.

Participating in the implementation of the project “Reach to Excel phase II: Enhanced Financial Inclusion for Rural Women” in the town, Mrs. Thanh together with leaders of the District Women’s Union, communal WU chapters, and residential areas introduced to local women about the process, principles of establishing and operating the Village Savings and Loan Association (VSLA) since the end of 2020. After 20 days, she established five VSLAs attracting more than 80 members in five residential areas.

In order to build trust and affirm the benefits of joining the VSLA group, Mrs. Thanh herself and her daughter-in-law also joined the group, and at the same time, the leaders of the WU chapters in areas where the VSLAs were established also joined the VSLA activities, and mobilize their husbands and sons to participate as well. They regularly monitor and assist group members.

Besides using the application to support the operation and monitoring of the groups’ activities, Mrs. Thanh also actively uses Zalo as an official communication channel for the groups. In 2021, when the Covid pandemic was extremely complicated, the Zalo groups’ activities were really effective, which helped maintain regular group meetings.

Overcoming many difficulties in using the digital application, now the management boards of all five groups can proficiently use TIZO, and 50% of the members also use this application. Through the TIZO system, Mrs. Thanh conveniently and accurately tracks the data on members, the number of shares mobilized, and the loan amount provided to members in each group meeting. The use of both Zalo and TIZO platforms has facilitated more convenient and faster data comparison, updates as well as group monitoring and management.

VSLA group contributes to changing the expenditure management habits of women in Quang Tri 

Targeting rural women’s economic empowerment, with the support from CARE International in Vietnam, the Quang Tri Provincial Women’s Union (WU) has implemented the project “Reach to Excel phase II: Enhanced Financial Inclusion for Rural Women” by promoting Village Savings and Loan Association (VSLA) in four communes in two districts of Dakrong and Huong Hoa. The VSLA operating model with financial shares, after more than a year of implementation, has been promoting its practical effectiveness in changing saving mindset, improving economic autonomy, improving the life and status of women in the family as well as in society in the mountainous ethnic minority areas.

The project has been implemented in 4 communes of Lia, Thuan (Huong Hoa), Ta Long, and Huong Hiep (Dakrong). Although Quang Tri received late training and guidance from the project on the model, with the efforts and activeness of the Women’s Unions at all levels, the communes promptly conducted the project’s introduction workshops, and meetings of Women’s Members to deploy the model and urgently establish VSLA groups. To date, 37 groups have been established (exceeding the initial registration target of 20 groups per province) with 611 members and a total savings amount of more than VND321.86 million, out of which VND297,5 million was used as loans to their members.

VSLA groups work with the support tools of management software, thanks to which the publicity of share contributions, loans, and interests… is made easier and more transparent. Monitoring results show that, on average of all groups, each woman member saves VND5 – 7 million and has got into the saving habit. Besides, this is an effective channel to mobilize idle capital in villages and hamlets, local women can buy shares and borrow money conveniently to invest in livelihood development, education, etc.

In particular, this model helps women in ethnic minority areas improve their financial management skills, gradually change their habits of household spending that their husbands previously managed, and most importantly, they do not have to use black credit services. Many women, in the case of their children’s weddings, have come to the VSLA to borrow money, and then paid it off gradually, so they are very confident in the position of women in the family.

Promote members’ development through VSLA meetings/activities 

With the R2EII Project and the “Village Savings and Loan Association (VSLA)” model, Mrs. Phan Thi Bich Lien in Lieu Tu commune, Tran De district, participated in the Project’s Trainings for Trainers (TOT) since the early days of Project implementation in Soc Trang. By learning about the model, together with many years of experience in participating in financial and credit activities of the Commune Women’s Union as well as various programs and projects, she always has a thorough perspective and in-depth understanding of each content, thereby actively contributing ideas to help improve the Project implementation effectiveness in the commune.

In Lieu Tu commune, Mrs. Lien supported local women in Bung Triet hamlet in establishing a new group following the VSLA model, with 100% of the members being Khmer – who previously mostly did not actively participate in WU’s activities. In order for this group to operate more effectively and better meet the needs of its members, Mrs. Lien has provided trainings and guidance on knowledge and skills for the group’s management board. Thanks to the VSLA activities, local women are excited and increasingly enthusiastic to participate in the WU’s activities.

“At the beginning, it was difficult because the women’s income in the hamlet was not high, and everyone found it difficult to save money every month. In addition, not everyone has a smartphone, so it was not easy to use the application to manage the group” said Mrs. Lien.

Through regular monitoring and support during in-person working sessions with groups or updating data on the group’s operation management application, Mrs. Lien has gradually overcome the initial obstacles to support the groups to function effectively. Currently, besides Bung Triet Que Toi group, there are four other groups with 46 active members in Lieu Tu commune.

Apply digital technology in group management – from the perspective of a money counter 

Xuan Dao hamlet, Dao Xa commune, Phu Binh district, Thai Nguyen province is a rural hamlet whose main income is from agriculture. The use, access, and application of information technology remain limited here. Some women members do not know how to manage family finances.

Since the Project implementation in the hamlet (December 2020), the Xuan Dao VSLA group was established with 18 members. Mrs. Ong Thi Huyen Nhung was assigned to be a money counter and in charge of updating data on TIZO software. Mrs. Nhung and the women in the group’s management board held meetings with the group members to develop internal regulations, and encourage members to save and buy shares with VND200,000/share. By December 2021, at the time of the year-end meeting, the group has mobilized VND144,500,000 in total. After 12 meetings, 18 members borrowed money to support household economic development.

During her VSLA meetings, she updates the information securely, accurately, and sufficiently on the software, ensuring that all information and personal data can be updated. In addition, at VSLA meetings, knowing she is proficient in using digital technology on the phone, other women asked her to instruct them on how to use necessary applications, such as paying tuition fees online, downloading learning applications, etc. Many women aged 50 – 60 now know how to use digital technology.

In 2022, by the 5th meeting, the savings amount was up to VND85,000,000, with six borrowers. Loans are all used for the right purposes, and thanks to that, the household economy of the members gradually gets stable.

Through the meetings/activities, VSLA members exchange, share and learn from economic development experiences, and promote their solidarity and bond, and they share experiences to jointly develop their livelihoods, stabilize their lives, and connect with other women in the WU.

Saving is not difficult – The change since joining VSLA 

Mrs. Tran Thi Hoa lives in Pat Duh, Quang Nham commune, A Luoi district, Thua Thien Hue province, a difficult ethnic minority area close to the Vietnam – Laos border. Her family is under extremely difficult circumstances, her husband is seriously ill and cannot work. She alone has to shoulder the whole family’s work, from farming, working as a hired laborer for some wage, to childcare. Her family is on the list of poor households in the commune every year.

The first time she saved, she only bought one share (par value of VND50,000), gradually in later months she learned how to save and then could buy 2-3 shares/month. Not only focusing on saving, at the VSLA meetings, women also talk about family life and share experience in farming and husbandry for higher productivity and effectiveness.

In the 5th month, Mrs. Hoa borrowed from the group’s savings fund to buy a pair of piglets. Then she sold them to earn VND6,000,000, now she continues to buy piglets to raise again.

Being asked about her feeling when participating in project activities, she excitedly shared: “Participating in the saving group project, I felt very happy. Because I would have never thought that I would be able to save like this. Listening to the women talk about their disadvantages, advantages, and experiences in life and in household economic development, being able to talk and chat with them, I feel more comfortable after hard working days, and I can also access loans when my family is in difficulty”. She looks forward to continuing to participate in this saving activity and many more activities. At the end of one cycle of the VSLA, she had a small savings for her family.

Mrs. Hoa hopes that the project will continue to be implemented so that many women under extremely difficult circumstances can also participate, and the model can be widespread and create love and bonds between women in better-off conditions and those in difficult conditions like myself before.

Village Savings and Loan Association contributes to improving the lives of women in Long Son commune 

Understanding the basic information and the activities of the Women’s Union of Long Son commune, Cau Ngang district, members were pre-selected and locations were selected to organize the establishment of five Village Savings and Loan Association (VSLA) groups in five hamlets. And at the same time training sessions on the group’s establishment and operation process were conducted for the VSLA management boards to grasp and implement, and the concerns/questions of VSLA members were addressed in the meetings to establish VSLA.

Results of savings and loans from VSLA in 2021: 57 members engaged; Total savings of five groups: VND101,800,000; Total shares of five groups: 996 shares; Total loan amount: VND67,300,000 (to 34 members); Total loan interest earned: VND5,360,000.

VSLA members mostly used the loan for a small business, procurement of agricultural material inputs, and some borrowed in case of emergency. The Women’s Union monthly checks, supervises and supports groups in organizing meetings, recording minutes and using the TIZO application in the VSLA monitoring and management. Generally speaking, the groups organize meetings and activities in accordance with regulations and guidelines set out, the cash left after shares buying and loans given to members is well managed and locked in a safe of which the keys are kept by assigned members.

In 2022, five groups received support from the P4EM project with VND60,000,000 for use as a loan fund (VND12,000,000/group). In the first 6 months of 2022, the Women’s Union restarted five savings and loan groups from VSLAs with 61 members. Total savings of five groups: 881 shares with the amount of VND96,000,000; Total loan fund: VND140,600,000 (for 52 loan times); Total loan interest earned: VND4,729,000; Total mutual support fund: VND1,790,000; Balance at the end of the loan period: VND15,400,000. Loans were mainly used to serve livelihood activities such as small trade and purchase of agricultural inputs.

The Commune Women’s Union realizes that the establishment of VSLA groups, with the support of the Women’s Union and CARE, both encourages and motivates women members to save, and facilitates members’ bond and sharing about difficulties in life. Thereby, WU staff and members are more aware of the functions of the Women’s Union in taking care of practical benefits of women members, and women actively participate in the implementation of the Women’s Union’s key tasks.

Members earn more income, the joy multiplies through loans 

100% of the residents in Hoa Lung village are Cao Lan ethnic people, household income in Hoa Lung village is mainly from small-scale agriculture and livestock. Access to economic development information of many families remained limited. People did not have the habit of monthly saving.

Under the guidance of the Women’s Union of Dai Phu Commune, Son Duong District, in March 2021, the WU of Hoa Lung Village established a Village Savings and Loan Association (VSLA). The established VSLA has helped women get into the habit of saving, and at the same time offer them loans to invest in production, livestock or consumption without too much paperwork and procedures and waiting time as the loans from the banks.

Mrs. Tran Thi Quynh was the first to bravely join the VSLA and mobilized other women to join. Being trusted by other women to be the VSLA group leader, she held meetings to discuss, develop and agree on the VSLA’s operating regulations and mobilized the members to buy shares at the value of VND100,000/share. As of June 2022, the group’s outstanding balance was VND182,687,000, and 30 loans were provided to members to invest in livestock, poultry breeding and small businesses.

In December 2021, Mrs. Quynh borrowed VND5,000,000 from the VSLA group to invest in buying accessories and materials to make wigs, then sold to a wholesale factory outside the province. The business develops well and currently gives a stable income of VND15,000,000/month. Realizing the good development potential of this business, she instructed 15 members in the village to make wigs. When they got used to the work, she let them take the accessories and materials to produce at home, with an average income of 4,500,000 VND/person/month.

Mrs. Quynh added, “The VSLA’s activities have created an opportunity for me to be more self-confident in choosing and deciding to do a new job. I am happy when my job develops smoothly and creates conditions for other women in the village and hamlet to have a more stable income”.

VSLA members have strengthened their sympathy, sharing, bond and solidarity,  especially saving (buying shares) has become their habit.

Effective household economic development thanks to the VSLA loan 

In December 2020, the project “Reach to Excel – phase II” was introduced in Xuan Ai commune, Van Yen district, Yen Bai province in order to help women access capital conveniently with simple procedures through the “Village Savings and Loan Association – VSLA”. Mrs. Nguyen Thi Quynh actively registered for the village to establish VSLA and joined the VSLA’s management board.

After joining the village VSLA for a while, she shared: “I feel more confident, I have the opportunity to exchange, learn and share more social knowledge and experience to develop the livelihood and build a happy family… Joining the VSLA, other members and I actively manage (household) spending to have money to buy shares (savings) in the group in a reasonable manner without affecting household expenditure.”

“With the savings of myself and other VSLA members, we have supported with loans granted to group members for their economic development, overcoming difficulties, procurement of household appliances and equipment… Loans are decided monthly through a group meeting with simple loan approval steps, based on the consent of all members.”

“We are aware of and proficiently use technology applications to monitor and capture information about savings sources, loans, interest rates of members and meeting schedule of the group,” shared Quynh.

Quynh’s group meets periodically on the 10th of every month. “After six sessions of VSLA activities, I have saved VND3,500,000. Joining this savings group helps women become more confident about their financial ability. After completing the first year, I will mobilize more women to join the VSLA, so that they can access loans conveniently and talk to each other more,” added Quynh.