Access to Coordinated Credit and Enterprise Support Services
Women in Hai Phong province (Vietnam) organise themselves to make baskets, as a result of business development training from the Vietnam Belgian Credit Project.
Mrs. Le Ngoc Trang Dai, age 40, is waking up at 5am to begin her day. Apart from caring for her family, including her frail mother and father-in-law, she also attends to her farm animals. These include several goats that she was able to purchase with a one-year 100-euro loan from the Vietnamese Belgian Credit Project.
Mrs. Le lives in Trung, a commune in Tien Giang province, famed for its tropical fruit cultivation. She explains, “I used to buy fruit and sell it on the market, but selling fruit is seasonal business. So, I decided to use the loan to buy goats.”
This example of diversifying livelihoods is a defining characteristic of people’s increased access to credit. Small farmers like Mrs. Le always have to be prepared for shocks. An outbreak of avian flu that decimated poultry in the province in 2006 contributed to her decision to raise goats instead, even though growth is slower.
The Vietnamese Belgian Credit Project has been providing financial services to tens of thousands of poor and near-poor women in 17 provinces of Vietnam for over a decade. It is based on a Grameen type approach of forming small groups with joint liability, where individuals access loans ranging from EUR 50 to 150 and repay them in monthly instalments with interest.
The programme is managed by the Vietnam Women’s Union and repayment is excellent. Borrowers are highly appreciative of the project, not only because of the positive effect on their living standards, but also because of a simple reason. In the words of Mrs. Le, “What I like best about the program is the savings and monthly repayments, because it is easier for rural women like us.” The right financial products, including the opportunity to make frequent repayments, are what distinguish the Vietnamese Belgian Credit Project from larger and less flexible credit institutions.
Mrs. Vu Thi Lien from Ham Hong commune in Nam Dinh province bought a sewing machine to make towels. With this small business she was able to support the schooling of her two daughters and sons, as well as build a proper latrine in her house. Mrs. Vu says, “In 1998 my husband passed away and I didn’t have enough money to improve my home.” However, access to the Vietnam Belgian Credit Project loan enabled her to do just that. “Now I help my sons to build their own houses,” she explains.
As part of the final phase of cooperation between Belgium and Vietnam in this project, efforts are being made to leave a legacy to the microfinance sector in Vietnam by setting up a wholesale lending facility for sustainable microfinance institutions. With increased access to financial services, including credit, savings and insurance, women such as Mrs. Le and Mrs. Vu will continue to add stability to their income patterns, improve their livelihoods and invest in their family’s future.
