The challenge of starting a business, or even maintaining a basic livelihood, often comes down to a single, fundamental hurdle: access to capital. In the An Cu commune of Vietnam’s An Giang province, a community where nearly 70% of the population identifies as Khmer, a locally-driven savings and credit model is offering a lifeline to women seeking to build economic stability. This isn’t about large-scale investment or complex financial instruments. it’s about compact amounts of money, pooled together and strategically deployed to unlock opportunity. The initiative demonstrates how even modest startup capital can be transformative for individuals and communities facing economic hardship.
For decades, the An Cu commune has actively pursued economic development programs, recognizing the need to support its residents. The local Women’s Union has been instrumental in implementing initiatives like the “Rice Bowl of Compassion” – a food security program – savings groups for impoverished women, and revolving funds designed to provide access to credit. But it’s the share-purchase savings and credit group model, introduced in the Po Thi hamlet in 2013, that has gained particular traction. This approach, built on trust and mutual support, is proving remarkably effective in empowering women to improve their families’ financial situations.
According to Huynh Thi Say, Chairwoman of the An Cu Commune Women’s Union, the model has been steadily expanding its reach. “The model has been implemented since 2013 and has helped Khmer women improve their lives,” Say explained. “Currently, the credit group has 28 members who meet twice a month. At each meeting, women purchase between one and five shares, each valued at 50,000 Vietnamese Dong (VND). Monthly, group members purchase shares worth 10 to 15 million VND, providing loans to women needing capital to develop their family businesses.” As of November 21, 2024, 1 USD is equivalent to approximately 24,450 VND, meaning each share costs roughly $2.04 USD.
A key element of the program’s success is its affordability. Women receiving support can repay their loans easily, thanks to interest rates set by the group at just 1-2%. If a member doesn’t require a loan, their shares are saved until the end of the year, at which point the capital is returned along with any accrued interest. “Since its establishment, the savings group has mobilized 200-250 million VND annually, supporting over 50 Khmer women in improving their living conditions,” Say stated. “Participating in this model provides women with additional capital to increase their income through small-scale trade and livestock raising, helping them escape poverty.”
The impact of the program is palpable. At a recent meeting of the Po Thi hamlet savings and credit group, members expressed a clear sense of optimism. In a mountainous region with limited socio-economic opportunities, access to even a small amount of capital can be a game-changer for Khmer women. The model has been sustained for 13 years, a testament to its practical benefits and the commitment of the women involved.
Chau Thi Thi, the leader of the share-purchase savings and credit group in Po Thi hamlet, understands the power of these funds firsthand. “Many women now have the capital to raise chickens, pigs, and cows, and earn a profit,” she said. “Everyone is happy with the initial capital. Thanks to this model, I was able to raise ten free-range chickens, which have now doubled in number, and I repaid the loan on time.”
The success of Thi’s venture has encouraged others to join the group. Chau Thi Pau used a loan to open a small grocery store in her home. “It’s difficult to start a business in the countryside, especially without capital,” Pau explained. “Thanks to the credit group, I was able to open a grocery store and improve my income. At the end of the year, I even had a small surplus. Even though it’s not much, we are all very happy.”
A visit to Neang Nanh’s home illustrates the tangible benefits of the program. Two cows graze peacefully behind her house. “I saved some money and took out a loan from the credit group to buy these two cows,” Nanh explained. “When they are grown, I will sell one for a profit and repay the loan. With the profit, I will buy another.” The small loan, she emphasized, provided not just financial assistance but also the motivation to pursue her dreams and ensure a brighter future for her children, who now have the opportunity to attend school and learn to read and write.
The An Cu Commune Women’s Union plans to expand the share-purchase savings and credit group model to other hamlets and to all members of the union. “This model has proven very practical and helps women provide for their families and earn additional income,” Say concluded. “With the support and active participation of the members, we are confident that the model will continue to develop in the future.”
This localized approach to microfinance offers a valuable lesson in community-led development. While larger-scale financial interventions often dominate headlines, the story of An Cu commune highlights the power of small, targeted initiatives to empower individuals and drive sustainable economic growth. The success of this model hinges on its low barriers to entry, its emphasis on mutual support, and its responsiveness to the specific needs of the Khmer community.
Disclaimer: This article provides information about a financial initiative and is for general knowledge purposes only. It does not constitute financial advice. Readers should consult with a qualified financial advisor before making any investment decisions.
The An Cu Commune Women’s Union is currently assessing the feasibility of integrating digital financial tools to streamline the savings and loan process. The next update on the program’s expansion is expected in early 2025. We encourage readers to share their thoughts on community-based financial initiatives in the comments below.
Keep reading
