Revolving Loan and Vocational Training Program for Farmers in Bac Kan Province

The revolving loan and vocational training program in Bac Kan was established in January 2005 and is planned to conclude in December 2008. The program is designed to alleviate poverty in the area and improve farming techniques.

Bac Kan province currently has only 6.28% of its land available for agriculture. However, with 85% of the population in the province's communes continuing to earn an income through agriculture, the lack of arable land is a bit problem. In the communes of Dai Sao, Hoa Muc and Ha Vi the average per capita income of farmers is 1,890,000 VND (just over US$100), which makes up only 27% of the national average income.

Jointly funded by APHEDA-Union Aid Abroad and AusAid this project has seen training and loans provided to some of the most disadvantaged farming families in one of the poorest provinces of Vietnam. By aiming to develop the utilisation and understanding of the uses of farming land by local land holders, this project looks at raising the ability of local farmers to establish better farming enterprises and successfully manage livestock. In addition to this training, APHEDA's project has aimed at providing its participants the skills and knowledge to design and implement production plans and helped to provide guidance and funding to develop the capacity of the participants.

The project's objectives are:

1. Assisting farmers in developing agricultural and forestry production sustainability, and to gradually turn this into goods production

2. Enhance solidarity in the community; reduce pressure on natural forestry areas, to protect forests in the communes and to mitigate farming land degradation.

3. Assist farmers to apply learnt knowledge provided by the vocational training project, and,

4. Disseminate and extend successful models of farming practices and skills to other communes in the province.

APHEDA's project is aimed at increasing the level of education about farming skills to those who make a commitment to the training courses and those most disadvantaged. Accordingly the project's selection criteria rest on:

• Single parent headed families

• Continuing with the graduates from the 2 month agro-forestry training provided by DOLISA-APHEDA in 2002-2005

• Farmers who have completed the 4 day course with the Farmers Support Center on technical skills and loans management

• Poor families with difficulties in accessing other credit.

Training is provided to participants on various farming techniques, such as raising sows, porkers, chickens, goats, pond fishery, planting bamboo or growing grass for horned animals.

In order to assist participants to successfully implement the various skills, techniques and knowledge that they have acquired from the training a loan scheme is available for those who meet the criteria. This scheme is designed to provide a very real basis with which the participants can begin to change their economic environment through access to capital for investment and development.

Criteria for accessing the loans include:

• households having a production plan, taking account of economic effectiveness and solvency,

• being given the necessary training in the form of production that the participant chooses,

• contributions by the beneficiaries to labor, land, costs to build breeding facilities, production tools and equipment, organic fertilizers and food for livestock,

• the participants having access to open and democratic meetings to keep informed about content, scale and loans from the project so that they can carry out investment activities.

By providing training to 220 households in the Bac Kan province and giving them access to loans of around 1,500,000 VND (US$100), APHEDA is looking to build the knowledge and skill base of local farmers and communities. It is hoped that by implementing this project successfully it will encourage other households to learn and follow the models being suggested without direct support from the project. Also, by building the capacity of local authorities and bodies to conduct these projects on their own APHEDA seeks to establish an environment of self-sufficiency and increasing efficiency among some of the most disadvantaged in Vietnam.

© Union Aid Abroad - APHEDA 2003.

Last Modified: Thursday, 26-Apr-2007 09:42:56 EST
This page: http://apheda.org.au/projects/vietnam/pages/1177544506_26247.html