VANNAH Meaning and
Definition
-
Vannah is a noun that refers to a financial concept and practice commonly found in Southeast Asia, particularly in countries like Cambodia, Laos, and Thailand. It entails a traditional form of rotating savings and credit system among groups of individuals within a community or village. In a vannah, a group of people, often family members or close friends, pool their financial resources and create a savings fund. Each member of the group contributes a fixed amount of money into the fund on a regular basis, typically weekly or monthly, and one member is selected to receive the total amount contributed for a specific period.
The selection process is often determined through a random draw or based on predetermined criteria. The chosen member has the freedom to utilize the entire vannah fund as they see fit, whether for personal needs, investment opportunities, or other financial purposes. This practice allows individuals who may lack access to formal financial institutions to save money, access credit, and support each other's financial endeavors.
Vannah is considered a form of social and financial cooperation as it fosters a sense of community and collective responsibility. It embodies the principles of trust, reciprocity, and shared accountability. While vannah is deeply rooted in cultural traditions, it continues to be practiced in many rural and urban communities, playing a vital role in local economies and providing socio-economic support.
Common Misspellings for VANNAH
Infographic
Add the infographic to your website:
