The effectiveness of the revolving fund mutual assistance group of the Farmers' Association of My Xuyen town.

STO - Over the years, the Farmers' Association of My Xuyen town, My Xuyen district (Soc Trang province) has continuously innovated its content and methods of operation to support its members in developing their economy, increasing income, and stabilizing their lives. One of the typical models that brings practical results is the revolving mutual assistance fund, with a community-based rotating capital contribution system that not only strengthens neighborly bonds but also promotes the spirit of self-reliance among farmer members.

Members of the mutual aid revolving fund group of the Farmers' Association in Cho Cu hamlet, My Xuyen town, My Xuyen district ( Soc Trang province ) receive capital. Photo: HUYNH NHU

Comrade Phan Van Toan, Chairman of the My Xuyen Town Farmers' Association, stated that in recent years, illegal lending activities have become very complex with many methods. In My Xuyen town, those involved in illegal lending often exploit social media to advertise usurious loans or post flyers advertising unsecured loans with attractive phrases such as "quick disbursement," "simple procedures," and "only an ID card required," leading many people in need of money to resort to this type of lending despite the very high interest rates. Faced with this situation, the My Xuyen Town Farmers' Association has intensified its efforts to raise awareness about illegal lending through regular meetings and group activities, and has established revolving fund groups to help members access capital safely.

The group's capital contribution method is also very simple: each member contributes a fixed amount of money according to an agreed-upon term. This money is rotated among members who need loans to develop their businesses . The group meets once a month and draws lots to distribute the support funds. This method creates a stable source of finance for members who need loans to invest in production and business without resorting to illegal lending or worrying about debt burdens, helping them to be proactive in production. This motivates them to expand their production models and increase their income.

For example, Mr. Le Quang Binh, a member of the Farmers' Association in Cho Cu hamlet, My Xuyen town, previously faced difficulties with capital in investing in and developing his family's economy. However, thanks to the capital from the cooperative, he has had more opportunities to conduct small-scale business and improve his economic efficiency.

Mr. Binh shared: “Recently, I received 17 million VND from the revolving fund for mutual assistance. I gave it to my wife to use as capital for a small business at the market and set aside a portion to pay for my child's university tuition. Without this mutual assistance fund, I would have to borrow money from outside sources and pay high interest rates, which would increase my expenses. This support fund helps me reduce my costs.”

Besides providing mutual support in terms of capital, members of the group also receive timely updates on the Party and State's policies and laws, helping to raise awareness and guide economic development. Simultaneously, members participate in training courses on livestock and crop farming techniques, as well as exchange and share experiences in economic activities, supporting each other in expanding production. Most importantly, the capital pooling group has contributed to building a spirit of solidarity and mutual support within the community, helping members develop their economy sustainably. Thanks to this, members participate more regularly and actively respond to local movements such as: the new rural development movement, the movement for national solidarity in building a cultured life in residential areas, and poverty reduction efforts…

Seeing the practical effectiveness of the model, the Farmers' Association of My Xuyen town has replicated it in all hamlet branches throughout the town. Currently, the association has 5 revolving fund mutual assistance groups with 104 members participating, and the monthly revolving fund amounts to 40 million VND or more, helping many members access safe capital and avoid the trap of illegal lending. In addition, the revolving fund groups also allocate funds to visit members when they are sick and give gifts during holidays and Tet (Lunar New Year).

With positive initial results, the revolving fund mutual assistance model of the My Xuyen Town Farmers' Association is expected to spread widely, becoming an effective channel for community financial support.

HUYNH NHU

Source: https://baosoctrang.org.vn/xa-hoi/202504/hieu-qua-to-hun-von-xoay-vong-tuong-tro-cua-hoi-nong-dan-thi-tran-my-xuyen-d6c5606/