Original Impacts of Microfinance Activities on Social Capital Development Regarding the Relationships between Members of Village Savings and Loans Associations

The study indicated impact of microfinance activities with Village Savings and Loans Associations (VSLAs) to community’s social capital development. Based on the responds of 356 members have been participating in the VSLAs (questionnaire and in-depth interviews), there has been a progression in social capital regarding members’ relationships proving the changes in members and their social relationship as well as the trust among them after joining the VSLAs. One of the unique and significant findings was the different ways and levels of trust among the members. The important of this finding is it emphasized how the social impact can effectively benefit the subjects of social welfare policies. The study also proposed solutions to promote the activities of VSLAs and develop social toward sustainable community development


Introduction
"Microfinance is a type of credit for the poor, which is the granting of very small loans to the poor for the purpose of helping them engage in production activities or start small business" (Kim Anh, 2011, p. 26). Microfinance in this article refers to small loans from the Vietnam Bank for Social Policies (VBSP)-the largest and most typical official microfinance service provider today-entrusted to social and political organizations such as Women's Union (WU), Farmers' Union (FU), Youth's Union (YU) and Veteran's Association (VA) under the model of Village Savings and Loans Association in Duc Trong district, Lam Dong province.
Social capital is an important resource among the 05 types of capital within the framework of sustainable livelihood. According to DFID (2001), "social capital is a type of livelihood asset. It lies in the formal and informal social relations (or social resources) through which people can create opportunities and gain benefits in the process of livelihood implementation (Nguyen Van Toan et al., 2012, p. 357). According to Homan (2015), "social capital is a system of community norms and interactions that create trust, cooperative actions, and a sense of community. A community rich in social capital can make efforts to develop other forms of capital that are lacking in the community".
According to Putnam (2003), social capital is built and used in the process of creating change on specific issues and if maintained well would become a source of wealth that makes other endeavors more easy and efficient (Homan, 2015, p. 46). Also according to Putnam (2000), social capital is classified into two forms, namely bonding social capital (connections within a group) and bridging social capital (connections between groups). While bonding social capital refers to the close relationships between members of a same group, bridging social capital tends to link members of different groups, including distant and less intimate relationships (Nguyen Quy Thanh, 2016, p. 20). In this article, I focused on analyzing the impact of microfinance activities on the development of social capital in term of the first form, bonding social capital.
Social capital plays a very important role in implementing community development's activities as being the asset that connect and mobilize other resources and capitals. Developing the livelihood asset (with social capital in particular) through social welfare policies has been one of the strategies that are integrated implementing to promote self-reliance community. The role of voluntary groups in community also highly needed for sustainable development. In this article, I would focus on showing the impacts of microfinance activities with VSLA model on the development of bonding social capital; which presented by changes in the members and their social relations as well as in their trust for fellow group members since joining the VSLAs. These are important solutions to develop community capacity, to mobilize people's voluntary participation in activities that would bring benefits to the community and promote sustainable community development.

Method
Sociological survey was applied in this study with a sample size of 356 subjects. The sampling unit is members of VSLAs that were mandated to social and political organizations by the VBSP of Duc coffee immediately as soon as there is any one in neighborhood sold their coffee at somewhat good price. It would better than tired myself worrying about the high and low of the market. My wife sometimes would nag me for it, but the coffee price of the next day was even lower". It can be seen that members would change and develop confidence by participating in the VSLA. It is this change and confidence that would encourage them to participate more regularly and effectively in the group activities. They also proved the development of members' capacity. "Social capital strengthens both individuals and communities through networks of connections and this concept has great merit in creating community change agents. Community capacity, the ability of members to act effectively to improve community functioning, and social capital are mutually reinforcing" (Homan, 2015, p. 46).

The Level of Improvement in Members' Social Relations While Participating in the Vslas
As we asked respondants about the improvement in their social relations since joining the VSLAs, 62.4% of them confirmed it was significantly improved; 25.3% said it was fairly improved; 12.1% believed it has some improvements; only a very small percentage (0.3%) of them stated that it was mildly improved and no one thought there was no improvement at all. As we can see, the majority of VSLA members have had their social relations improved since joining the group. The groups created connection among its members and between the members with community. These results also pointed out that the small-group environment can promote more social interaction and cohesion than the larger-scale environment of those social and political organizations. The formation of VSLAs with small-scale allowed its members easier to interact, share and exchange with each other as well as building close relationships: "We used to be only acquaintance; but after we joined the VSLA, we shared, exchanged and participated many group activities together.  years believed that they only had few improvements (0.6%). No members with seniority more than 5 years stated that they only had few improvements in their social relations. This have further affirmated the environment of VSLA could help develop the relationship between members of the group, which is reflected in a ever closer relationship than in the environment of social and political organizations.
Which showed the regular interaction between members through VSLA activities, such as sharing of a female member (42 years-old, member of VSLA and WU): "I often thought that there really isn't any distant between group members. We just share what we think instinctively without any worry; therefore, many members are very close to me and we often meet each other. If any bad happen to a member's family, we will visit him/her and vice versa. The improvement is also manifested in how members could make new acquaintance other members in their group (accounted for 59.6%) via the introduction of their current associated members. This bridging relationship could be from their business partners, from friends with similar interests or concern. The newly formed connections not only could provided business efficiency boost, introduction to new jobs, cultivation & livestocking experiences; but also building mutual-support relationships: "My family raises silkworms but only in small scale, and I have taught myself the raising technique before starting the bussiness. When participating in the VSLA, I shared to Ms. H about this. Ms. H also used to raise silkworms, so she shared some of her experiences. Back when she was in the bussiness, she has made acquaintance with Mr. T in the commune also raised silkworms. Therefore, I also visited Mr. T's house to see how he raised his silkworms. Through many sharing and exchanging silkworm raising experiences, I and Mr. T also become close friends and often help, share experiences with each other." (Female, 45 years-old, member of VSLA and WU). The improvement also reflected in how members would made effort to create new connection with people in the community (accounted for 41%). Above also mentioned in follow statement: "Since being a VSLA member, I also spend more time with others in the community. Other mebers also want to find out the thoughts and aspirations of everyone in the community. Knowing people's difficulties; if we can help, we wil try our bestl. When a member applied for loan, orther group members also will visit their family to check whether they are using the money for the right purpose. Initially, we will visit as another member of the group and offer our concern and encouragement. After that, we can Figure and share other related topics." (Female, 39 years-old, member of VSLA and FU). Schneider (2006) also emphasized that "social capital is more than connections" and Coleman (1988) indicated "social capital available outside in community can replace the lack of family resources." (Homan, 2015, p. 46).

The Level of Trust between VSLA Members
Trust is highly important to people's relationships, especially for those close relations of people within the same village, neighbor and community. Trust also is an important factor in order to establish business or mutual-support relationships. After surveying the VSLA members, the results in Chart 3 suggested that 48.9% of them confirmed they have strong trust for members of their group; 41.3% said their group members are trustful. Meanwhile, the proportion of members who rated "neutral" is only 9.8% and no member thought their group members is untrusful.
Trust among VSLA members also desmontrated in follow statement: "Our group members trust and often confide to each other about difficulties in life and in business. We also open up to each other without any hesitation. When the due days for interest payment come, group members would self-consciously pay and sign the without any questions or doubts. Our trust for each other showed by our cohesion, mutual trust and care for each other. Through which, we help each other to build successful business and happy family." (Female, 48 years-old, member of VSLA and WU). We can see that trust between members plays an important role in building relationships and in daily life. Members' 8 Social Science, Humanities and Sustainability Research Vol. 2, No. 4, 2021 willingness to share their thoughts with each other indicated their closeness, cohension and willingness to support each other in business. With these, they can create changes for a better life together.

Figure 3. The Level of Trust between VSLA Members
In addition, there are different in level of trust with respect of members' seniority. Among the members under 5 years of seniority, 42.9% confirmed that they have strong trust their group members and the rate increased to 44.2% for member from 5 to under 10 years; 63.9% for members from 10 to under 15 years; 76.2% for members under 5 years (which is nearly 1.8 times higher than members under 5 years, 76.2% vs 42.9%). This proved the VSLA's environment greatly promoted members' trust in each other.
This trust was formed and grown to higher level gradually through the process of working, exchanging, helping as well as participating in group activities. In order to form this mutual trust, each member required to improve himself/herself by reflecting on his/her relationships and interactions with other members. As in a statement from a female member (39 years-old, member of VSLA and FU): "To make others believe in you, it is important to make yourself become trustworthy. One have to have faith in oneself; for without it, there will be nothing left. You also need to trust your group members. If you believe in them, they will believe in your; and this mutual-trust is condition for loan to be made. We cannot approve for loans when we don't believe in the applicants. With this, I have been assigned many tasks such as taking notes or visiting other members. Back then, when I was only member of the Farmers' Union but a member of VSLA, I was not aware of this." The percentage of respondents who have trust and strong trust in their group members are high with a difference regarding to their seniority. Among those have seniority under 5 years, the combined percentage of members have trust and strong trust is only 80%; while this rate in other groups are almost absolute (100% for members from 5 to under 10 years and over 15 years; 98.4% for those from 10 to under 15 years). There is a high level of trust among VSAL members, which is not showed in the  Vol. 2, No. 4, 2021 environment of socials and political organizations festival. Trust between VSLA members is formed and grown along with the members' participation in group activities and gradually reached to a higher level.

Different Forms and Levels of Trust between VSLA Members
When the trust among members reached a high level, it will be manifested in daily activities. The study results showed members of VSLA often express their trust in each order by sharing personal thoughts and feelings; sharing bussiness stories; family-like cohension and attachment with each other; sharing business experiences and tips; sharing personal stories (joyful and sorrow); sharing secrets and lending money.
From Figure 4, the forms of trust that VSLA members often expressed to each other included sharing thoughts and feelings (accounted for 86.8%); sharing business stories (84.9%); family-like cohension and attachment with each other (83.7%). These trust expressed among team members frequently and they are ready to share with each other anything, including delicate things they won't share with outsiders. "In our VSAL, many members currently are as close as family. We confides to each other everything and trusts each other greatly. Our relationships are close and cohesi. We talk to each other openly without secrets. Even delicate things, that normally we wouldn't share with outsiders, can be discussed with each other. I feels comfortable when able to talk to the members who would understand me and give encouragement, advice or timely help." (Female, 52 years-old, member of VSLA and WU).

Figure 4. Different Forms and Levels of Trust between VSLA Members
In additions, the forms of trust with low frequency of express are sharing secrets (accounted for 40.4%); share personal stories (68.6%) and sharing business experiences and tips (75.8%). These are mostly related to private matters which usually only shared with intimate relationships such as family and  Vol. 2, No. 4, 2021 blood-related. Also, things related to business experience and tips, which would help members sell their products, could not be shared to others easily, especially to outsiders. However, VSAL members were still willingly to share them with other group members, helping other members apply those tips in business in order to avoid losses. "Once in a coffee's blossom season, there were some changes in weather that affected the flowers' development and pollination. Mr. S shared special ways to care for the flowers to prevent malnutrition or withering. He gave specific instructions on how to buy and mix the medicine as well as when to spray them. I know Mr. S before and these sharing weren't happen before in the meetings of the Farmers' Union. These information was considered a business secret and he rarely shared them widely. He considered the group members as close friends and trusted us with these experiences; so that we can treat our coffee garden and avoid economic losses." (Male, 53 year-olds, member of VSLA and FU).

Discussion
Based on the above study results, we propose the following contents: Firstly, we should focus on improving the efficiency VSLA's operation such as enhancing inspection and supervision on the use of capital; improving guidance and support to members how to use capital; increasing trainings and seminars; encouraging members to share business experiences and participate in group activities; facilitating the mutual-support in the groups; building organizational and management capacity; promoting sharing of experience on group organization and management; and rewarding effective groups and typical members as motivation.
Then, to improve efficiency in organizing and managing VSLAs in community, commune-level officials and group leaders need to pay attention to the needs of group members; listen to members; improve their knowledge, skills and management capacity; promote the members' participation; create www.scholink.org/ojs/index.php/sshsr Social Science, Humanities and Sustainability Research Vol. 2, No. 4, 2021 a favorable environment for members to exchange and share; pay attention to the common interests of the group and the community; operate and organize effectively; develop clear and responsive plans.
Next, it is necessary to develop policies to encourage the formation of mutual-support among VSLA members by forming mutual funds, saving groups or small social organizations and voluntary groups in the community.
Following, we should facilitate more experience sharing sessions on group organizing and managing between different VSLAs in the community to promote the newly-formed groups or those operating inefficiently. From there, we can create sustainability in VSLA's operation.
Finally, we need to created a favorable environment for members to develop skills and capacity during their participation in VSLA activities such as encouraging members to actively exchange and share business experiences as well as daily-life tips; promoting community-oriented activities; facilitating members to cooperate and interact; encouraging members' participation in solving social problems in the community; and increasing sharing sessions on organization and management skills.

Conclusion
From the initial and ongoing goal of microfinance to expand the community's ability to access financial capital, the study presented the social impact of microfinance activities on bonding social capital development of livelihood asset regarding the VSLA members' relationships. This finding has great significance, proving the effective social impact brought to the beneficiaries of social welfare policies.
The result also indicated the important role of voluntary groups in the community; who can promote development of capitals in sustainable livelihoods by creating opportunities and empowerment as well as building capacity for the beneficiaries. The loan program with VSLA model of the VBSP in Duc Trong district, besides bringing economic support (loans for the people), also created remarkably social impacts. It has helped people building capacity, confidence and voluntary spirit during their participation, contributed greatly to sustainable community development.