Decision 1700/MAF on Village Development Funds in Poor Districts.

This Decision establishes the legal framework for Village Development Funds (VDFs) within poor districts of the Lao People's Democratic Republic. Issued by the Ministry of Agriculture and Forestry, the regulation defines VDFs as voluntary, community-managed revolving funds designed to improve livelihoods and alleviate poverty. The state provides support through budgeting, infrastructure, and technical assistance, while ensuring the funds operate with transparency and accountability. To establish a VDF, a village must be officially designated as "poor," consist of at least ten member households, and receive formal approval from district authorities following a structured application process.
The document outlines a detailed organizational structure comprising a membership meeting, an administrative committee, and an advisory body to oversee daily operations and financial management. The fund’s organizational structure promotes social inclusion by mandating a "VDF Advisory Committee" that must include a representative from the Lao Women's Union. These funds are primarily used to provide short- and medium-term loans to members for agricultural production, handicrafts, and small-scale trade, as well as emergency medical assistance. The regulation also specifies financial protocols, including interest rate caps, profit-sharing distributions to various reserve funds, and mandatory monthly reporting to district management committees to ensure long-term sustainability and legal compliance.