Role of  Savings and Credit Groups in Ethnic Minority Household Livelihoods in Ea Drong commune, Vietnam

Chung Van Nguyen; Ty Huu Pham; Nam Van Le; Dung Tien Nguyen

doi:10.48165/IJEE.2026.62317

Authors

Chung Van Nguyen University of Agriculture and Forestry, Hue University
Ty Huu Pham University of Agriculture and Forestry, Hue University
Nam Van Le University of Agriculture and Forestry, Hue University
Dung Tien Nguyen University of Agriculture and Forestry, Hue University

https://doi.org/10.48165/IJEE.2026.62317

Keywords:

Savings and credit groups, Vietnam, Women, Community-based finance, Ethnic minorities, Livelihood, Savings and credit groups, Vietnam, Women’s financial inclusion

Abstract

The study was conducted in 2025 to examine the role of savings and credit groups (SACGs) in supporting the livelihood of ethnic minority households in Ea Drong commune, Vietnam. The study analysed the contribution of SACGs to household saving practices and access to credit, examined the use of SACG financial resources in livelihood activities and assessed their contribution to strengthening livelihood assets. The study employed a mixed-methods approach, combining semi-structured interviews with 72 SACG members, two focus group discussions, five in-depth interviews, and secondary data. The findings indicated that SACGs functioned as flexible community-based financial mechanisms that complement formal credit systems in rural areas. Approximately 97.2% of members reported increased annual savings after joining SACGs, while 45.8% accessed loans directly from the groups. Loan amounts ranged from $76.92 to $192.30 and were used for livestock production and essential household expenditures. Although SACGs mainly supported short-term and small-scale financial needs, these groups played an important complementary role in enhancing household resilience and supporting diversified livelihood strategies among ethnic minority households. The study highlighted the importance of integrating SACGs with agricultural extension, financial literacy training, and formal financial services to strengthen rural livelihood development and financial inclusion.

Author Biographies

Ty Huu Pham, University of Agriculture and Forestry, Hue University

Department of Science-International Cooperation and Library
Nam Van Le, University of Agriculture and Forestry, Hue University

Faculty of Rural Development
Dung Tien Nguyen, University of Agriculture and Forestry, Hue University

Faculty of Rural Development

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