Source: CCTV.com

01-23-2007 17:19

The women of Dong Trieu in Vietnam's Quang Ninh province are profiting from small loans provided by the Women's Trust Fund. They've been lifted out of poverty thanks to these loans. What the women like best about them is that they can gradually repay them. In today's working Asia series, Vietnam Television's Nguyen Thi Ngoc Anh tells us more.

As it is still very difficult for poor women in Vietnam to have access to credits from banks, microfinance is often the only alternative for poor people to access financial services. In Vietnam, it is mostly implemented through the channels of mass organisations as Women's Union, Farmers' union and it plays a very important role in poverty reduction and hunger alleviation.

With microfinance services, these women, who were not able to borrow even very small amounts, can take loans to set up or strengthen small businesses, like making pancakes, and consequently improve their lives.

"From the beginning, all the women were very happy with the programme because they all understood the advantages of getting a loan from the Fund. Today, many other women would like to join the fund but unfortunately we can not meet their demand because we don’t have enough capital." Said Ms. Nguyen Thi Minh Nguyen, microfinance manager of Ninh Phuoc Women's Assistance Fund in Ninth Thuan province.

The demand for loans is very high not only from new members but also from old members who need bigger loans. To meet this increasing demand is now a real challenge for Uong Bi Women’s Trust Fund.

Microfinance was introduced in Viet Nam in 1989 in the frame of a project implemented by the Women’s Union in 7 Northern provinces. Since then, microfinance has developed all over the country and is seen as an effective means to help poor people set up or strengthen a business to make a living. Many micro credit organisations, such as TYM, Dong Trieu and Uong Bi Women’s Trust funds in Quang Ninh province, Ninh Phuoc Women’s Assistance Fund in Ninh Thuan province, are doing very well offering diversified financial products to their members. However, in order to expand their outreach and impact in Viet Nam, these microfinance organisations still need the support of Government of Viet Nam and other international organisations.

According to the Microfinance Working Group (an informal group of microfinance practitioners), microfinance has spread over more than 30 provinces and about 3000 communes in Viet Nam. The total loan outstanding balance amounts is about 400 billion VND (25 million USD) and the repayment rate is more than 98%. These data do not include the loans provided by Viet Nam Bank for the Rural Development and Social Policy Bank.

Around the world, microfinance is playing a critical role in fighting poverty, that is one of the reasons why this year 2005 was chosen to be the international year of micro credit.

In Viet Nam, micro finance already contributed substantially to hunger alleviation and poverty reduction. Microfinance helps the poor to improve their lives and when it is properly designed it helps them on a long-term basis so that they don’t fall back into poverty.

In Viet Nam, micro finance is mostly implemented with a group methodology. Members form groups and meet regularly not only to take loans, to make repayments, and savings deposits but also to share experiences, discuss business. Together, members gain confidence; they are empowered and they are ready to tackle poverty and enjoy better lives.

In tomorrow's working Asia series, Vietnam Television will bring you a story of workplace safety.

 

Editor:Du Xiaodan