Consolidating management and implementation of Community Development Fund (CDF) through the Association of Cities of Vietnam (ACVN) (Vietnam LSC)



Approval Date
Actual Completion Date
Proposal Focus
Core Focus
Secondary Cities
Country Type
Lesson Learned for Cities Alliance Members and Partners
• The CDF manual is developed with participation from communities and other stakeholders. ACVN consulted members experienced in CDF implementation. This was helpful since the manual is seen as a document that will guide the creation, management and implementation of CDFs. While developing financial management software, the ACVN asked for contributions from the users in Quy Nhoh city. • Through participatory mapping method, local people can actively voice problems/concerns to city leaders and other communities. Unlike the conventional top-down planning approach, the CDF approach helps in understanding the needs of the community with a view to make urban development demand driven. • The CDF activities encourage exchanging experience among communities and cities. These exchanges help communities learn from each other.


Community Development Fund (CDF) is a financing mechanism that promotes a community-driven approach to pro-poor urban development, planning and management, in partnership with government agencies and other stakeholders. The CDF mechanism was initiated in Vietnam in 1990s and a national CDF network was created in 2007, with the Association of Cities of Vietnam (ACVN) as the designated secretariat for the network. The objective of this Activity is to support ACVN in achieving its goals of scaling up the community-driven upgrading approach of the CDF network, building on the foundation and lessons of the last two decades of experience. During this preparatory phase, ACVN intends to develop a CDF Operations Manual that would support the creation, management and implementation of CDFs in member cities. This preparatory work is expected to lay the foundation for engagement of the CDF network under the Cities Alliance ‘Land, Services and Citizenship for the Urban Poor’ (LSC) Programme.
The overall objective of this preparatory initiative is to build capacity for management and implementation of the CDF through ACVN.
Component 1: Building capacity for management and implementation of CDF 1.1 Develop an Operations Manual for the CDF 1.2 Print Operations Manual 1.3 Training workshop on CDF financial management procedures and community processes 1.4 Develop software for financial management of CDF and community saving fund Component 2: Preparation for expansion of CDF to new cities Activity 2.1 Train Community Supporters (CS) of new CDF cities on development and management of saving groups Activity 2.2 City to city exchange trips Component 3: Support for ACVN's CDF National Coordination Unit (NCU) for Project Implementation Activity 3.1 Coordinate, manage and implement the initiative with 4 staff, of which two will be full time and two part-time.
Expected Impacts and Results
The preparatory grant produced an Operations Manual that serve as a tool for transparent management and implementation of the CDF. Capacities to manage and implement the CDF is developed through training workshops on CDF manual and financial software for CDF management. This preparatory phase forms the basis to expand the CDF network under a future Cities Alliance grant associated under ‘Land, Services and Citizenship for the Urban Poor’ (LSC) Programme.