There are so many ways in which low-income families choose to earn a living through their small business ventures. Lendwithcare is driven to provide meaningful loan funding to help people achieve their goals, and like our lenders, we love to see the different ways in which people generate an income around the world.
In the lush landscapes of rural Vietnam, forestry plays an important role in supporting local livelihoods. Lendwithcare has recently started to support rural workers to cultivate acacia forests responsibly and effectively. We do this through our local partner in Vietnam, Thanh Hoa Microfinance Institution, who run a unique ‘Green Credit’ programme to provide loans and associated support for this activity.
Here’s how it works:
Loan recipients not only receive financial support but also ongoing training and monitoring visits from THMFI loan officers and local authorities. This integrated approach ensures that forest planting and harvesting are carried out in an environmentally sustainable way, protecting both the ecosystem and the economic future of the community.
Typically, this is how acacia cultivation works for those supported through Lendwithcare:
- The cultivation period is typically 5-7 years from planting to harvest. Instead of planting all their trees at once, many growers will stagger planting over different plots each year. This way, once the cycle is established, they can harvest and replant different areas each year, generating a more regular income flow.
- The harvesting method is typically clear-cutting mature trees on each plot once they reach the desired age and size. After harvesting, families replant new seedlings to maintain continuous forest cover and keep their income cycle going for the next rotation.
- The purpose of growing acacia trees is mainly to produce timber or supply raw material for paper manufacturing. By doing so, families can tap into reliable local markets that offer predictable demand. This stable market helps ensure that families have a dependable source of income once they harvest.
In the mountainous districts of Thanh Hoa province in Vietnam, the primary livelihoods of local people remain focused on agriculture, forestry, and fishery. Acacia cultivation allows households to make use of available hilly land while increasing incomes and contributing to poverty reduction.
Through Lendwithcare, you can support families in rural Vietnam to earn a living through acacia cultivation. Keep an eye out for more Green Credit loans here.
We've had a few questions related to local practices in Vietnam. We understand the concerns some lenders have expressed around clearing and the associated impacts on biodiversity. While Lendwithcare is committed to improving the lives of small business owners and their families, we also carefully consider any possible knock-on effects.
Vietnam's Land Law recognises three distinct types of forest land:
- Special-use forest land: Reserved primarily for the conservation of natural ecosystems, scientific research, and biodiversity protection.
- Protection forest land: Dedicated to safeguarding water sources, preventing soil erosion, mitigating natural disasters, and regulating climate.
- Production forest land: Designated for commercial forestry activities, including land allocated or leased for developing production forests.
The main acacia species being cultivated include mangium, auriculiformis, crassicarpa, and tissue-cultured hybrid varieties. These trees play a crucial role in reforesting bare and barren hills, improving soil quality, preventing erosion, and supplying the raw materials needed for wood processing and forestry product exports of Vietnam.
Because special-use and protection forests are strictly regulated by the State and the Forest Protection Department, THMFI ensures that all loans for afforestation activities are provided only for planting acacia trees on officially permitted production forest land. This guarantees compliance with environmental laws and promotes sustainable commercial forestry for small business owners supported through Lendwithcare.