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The Impacts of Microfinance Activities in Developing Human Capital for Sustainable Livelihood in Duc Trong District, Lam Dong Province, Vietnam

Received: 29 September 2021     Accepted: 21 October 2021     Published: 30 October 2021
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Abstract

The purpose of this paper is to present how microfinance activities (MF) implemented via village savings & loan associations (VSLAs) can affect the human capital for sustainable livelihood (SL). To this end, we will discuss the practical social impacts to the beneficiaries of social security policies and propose solutions to promote the activities of VSLAs, improve the members' capacity, develop human capital and sustainably develop community. The study used mixed methods with a survey and in-depth interviews. A survey was conducted with 356 VSLA members participating in different VSLAs under the management of social and political organizations in 04 ethnic minority communes of Duc Trong district. Besides the survey, the study also conducts qualitative research by in-depth interviewing stakeholders. The results showed the effectiveness in the social aspect of VBSP's loan program with the VSLA model. The development of human capital manifested through improving members' common knowledge, business experience, and skills such as problem-solving and the increase in their willingness to support others. Among them, the most drastic changes are the growth in members' business experience and mutual support. By building capacity, self-confidence, and voluntary spirit during group activities, members can acquire skills and knowledge to develop sustainable community development.

Published in International Journal of Sustainable Development Research (Volume 7, Issue 4)
DOI 10.11648/j.ijsdr.20210704.12
Page(s) 76-84
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Human Capital, Community Development, Microfinance, Village Savings & Loan Associations, Social and Political Organizations

References
[1] Haji, J., & Tilahun, A. (2013). Impact of Microfinance on The Livelihood of Smallholders Farmers: The Case of Oromia Credit and Saving Share Company, Grawa Branch, East Hararghe Zone, Oromia National Regional State, Ethiopia (Doctoral dissertation, Haramaya University).
[2] Atuya, G. N. (2014). Effect of microfinance credit on poverty alleviation at household level in Nakuru county (Doctoral dissertation, University of Nairobi).
[3] Bhuiyan (2013), Microcredit and Sustainable Livelihood: An Empirical Study of Islamic and Conventional Credit on the Development of Human Capital of the Borrowers in Bangladesh, 34, 3 (2013), 101 – 128, Journal of Economic Cooperation and Development.
[4] Demirgüç-Kunt, A., & Singer, D. (2017). Financial inclusion and inclusive growth: A review of recent empirical evidence. World Bank Policy Research Working Paper, (8040).
[5] DFID. (2001). Sustainable livelihoods guidance sheets. London, UK: DFID. https://www.livelihoodscentre.org/documents/114097690/114438878/Sustainable+livelihoods+guidance+sheets.pdf/594e5ea6-99a9-2a4e-f288-cbb4ae4bea8b?t=1569512091877.
[6] Hassan, A. (2015). Financial inclusion of the poor: from microcredit to Islamic microfinancial services. Humanomics.
[7] Mark S. Homan (2015). Promoting Community Change: Making it happen in the real world. Sixth edition. United States of America.
[8] Morduch, J., & Haley, B. (2002). Analysis of the effects of microfinance on poverty reduction (Vol. 1014, p. 7). New York: NYU Wagner working paper.
[9] Nguyen Dang Hiep Pho. (2016). Accessing the theory of the sustainable livelihoods framework DFID for studying the livelihoods at Cat Tien national park. Science Journal – Dong Nai University, No. 02-2016. ISSN 2354-1484.
[10] Nguyen Kim Anh (2010). Microfinance development in agriculture and rural areas of Vietnam. Thong Ke Publishing House, Ha Noi.
[11] Nguyen Van Toan, Truong Tan Quan, Tran Van Quang (2012). Impact of program 135 on the livelihood of ethnic minorities in Huong Hoa district, Quang Tri province. 72B, No. 3, 2012, Science Journal, Hue University.
[12] Okibo, B. W., & Makanga, N. (2014). Effects of micro finance institutions on poverty reduction in Kenya. International Journal of current research and Academic Review, 2 (2), 76-95.
[13] Pelinescu, E. (2015). The impact of human capital on economic growth. Procedia Economics and Finance, 22, 184-190.
[14] Slater, B., Knowles, J., & Lyon, D. (2008). Improvement science meets community development: approaching health inequalities through community engagement. Journal of Integrated Care.
[15] Thanh, P. T., Saito, K., & Duong, P. B. (2019). Impact of microcredit on rural household welfare and economic growth in Vietnam. Journal of Policy Modeling, 41 (1), 120-139.
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  • APA Style

    Do Van Toan, Nguyen Dinh Nghiep, Ngo Van Huan. (2021). The Impacts of Microfinance Activities in Developing Human Capital for Sustainable Livelihood in Duc Trong District, Lam Dong Province, Vietnam. International Journal of Sustainable Development Research, 7(4), 76-84. https://doi.org/10.11648/j.ijsdr.20210704.12

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    ACS Style

    Do Van Toan; Nguyen Dinh Nghiep; Ngo Van Huan. The Impacts of Microfinance Activities in Developing Human Capital for Sustainable Livelihood in Duc Trong District, Lam Dong Province, Vietnam. Int. J. Sustain. Dev. Res. 2021, 7(4), 76-84. doi: 10.11648/j.ijsdr.20210704.12

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    AMA Style

    Do Van Toan, Nguyen Dinh Nghiep, Ngo Van Huan. The Impacts of Microfinance Activities in Developing Human Capital for Sustainable Livelihood in Duc Trong District, Lam Dong Province, Vietnam. Int J Sustain Dev Res. 2021;7(4):76-84. doi: 10.11648/j.ijsdr.20210704.12

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  • @article{10.11648/j.ijsdr.20210704.12,
      author = {Do Van Toan and Nguyen Dinh Nghiep and Ngo Van Huan},
      title = {The Impacts of Microfinance Activities in Developing Human Capital for Sustainable Livelihood in Duc Trong District, Lam Dong Province, Vietnam},
      journal = {International Journal of Sustainable Development Research},
      volume = {7},
      number = {4},
      pages = {76-84},
      doi = {10.11648/j.ijsdr.20210704.12},
      url = {https://doi.org/10.11648/j.ijsdr.20210704.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijsdr.20210704.12},
      abstract = {The purpose of this paper is to present how microfinance activities (MF) implemented via village savings & loan associations (VSLAs) can affect the human capital for sustainable livelihood (SL). To this end, we will discuss the practical social impacts to the beneficiaries of social security policies and propose solutions to promote the activities of VSLAs, improve the members' capacity, develop human capital and sustainably develop community. The study used mixed methods with a survey and in-depth interviews. A survey was conducted with 356 VSLA members participating in different VSLAs under the management of social and political organizations in 04 ethnic minority communes of Duc Trong district. Besides the survey, the study also conducts qualitative research by in-depth interviewing stakeholders. The results showed the effectiveness in the social aspect of VBSP's loan program with the VSLA model. The development of human capital manifested through improving members' common knowledge, business experience, and skills such as problem-solving and the increase in their willingness to support others. Among them, the most drastic changes are the growth in members' business experience and mutual support. By building capacity, self-confidence, and voluntary spirit during group activities, members can acquire skills and knowledge to develop sustainable community development.},
     year = {2021}
    }
    

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  • TY  - JOUR
    T1  - The Impacts of Microfinance Activities in Developing Human Capital for Sustainable Livelihood in Duc Trong District, Lam Dong Province, Vietnam
    AU  - Do Van Toan
    AU  - Nguyen Dinh Nghiep
    AU  - Ngo Van Huan
    Y1  - 2021/10/30
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    DO  - 10.11648/j.ijsdr.20210704.12
    T2  - International Journal of Sustainable Development Research
    JF  - International Journal of Sustainable Development Research
    JO  - International Journal of Sustainable Development Research
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    PB  - Science Publishing Group
    SN  - 2575-1832
    UR  - https://doi.org/10.11648/j.ijsdr.20210704.12
    AB  - The purpose of this paper is to present how microfinance activities (MF) implemented via village savings & loan associations (VSLAs) can affect the human capital for sustainable livelihood (SL). To this end, we will discuss the practical social impacts to the beneficiaries of social security policies and propose solutions to promote the activities of VSLAs, improve the members' capacity, develop human capital and sustainably develop community. The study used mixed methods with a survey and in-depth interviews. A survey was conducted with 356 VSLA members participating in different VSLAs under the management of social and political organizations in 04 ethnic minority communes of Duc Trong district. Besides the survey, the study also conducts qualitative research by in-depth interviewing stakeholders. The results showed the effectiveness in the social aspect of VBSP's loan program with the VSLA model. The development of human capital manifested through improving members' common knowledge, business experience, and skills such as problem-solving and the increase in their willingness to support others. Among them, the most drastic changes are the growth in members' business experience and mutual support. By building capacity, self-confidence, and voluntary spirit during group activities, members can acquire skills and knowledge to develop sustainable community development.
    VL  - 7
    IS  - 4
    ER  - 

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Author Information
  • Faculty of Sociology and Social Work, Da Lat University, Da Lat, Vietnam

  • Faculty of Sociology and Social Work, Da Lat University, Da Lat, Vietnam

  • Faculty of General Studies, Ho Chi Minh Cadre Academy, Ho Chi Minh City, Vietnam

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