World Vision’s Microfinance Program is becoming a bridge to help poor people in Vietnam build sustainable livelihoods and improve their lives. From small loans, many families have escaped from precarious situations and firmly stepped on the path of economic development.
Change your life with micro-capital
Previously, the main source of income for Ms. Le Thi Le's family (Hai Lang, Quang Tri) was a few small fields, just enough to cover their living expenses. Not only did she have to worry about food and clothing, she also shouldered the responsibility of taking care of her elderly parents and raising two young children of school age. The mounting difficulties made her constantly worry and look for opportunities to escape from this precarious life.
Hope came when she joined the Savings and Pig Raising Group (S4T) of the Hai Lang Regional Program, an initiative implemented by World Vision International in Vietnam. However, loans from the S4T group were limited. The real opportunity opened up when the local Women’s Union introduced her to World Vision’s Microfinance Program. She and her husband decided to borrow 10 million VND for 15 months to start their dream.
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| Ms. Le Thi Le built a pig herd with a loan of 10 million VND. |
The first capital was used to build a barn and buy a breeding sow. Combining the knowledge learned from the S4T training course and capital from the Microfinance Program, Ms. Le focused on raising and saving. After only 15 months, she successfully raised 2 sows and welcomed her first litter of piglets. That achievement brought confidence to the whole family, helping her to continue to boldly borrow more capital to expand the scale, gradually building a larger herd.
Now, her family life has improved a lot. In 2022, with additional financial support from the local government, Ms. Le was able to build a new, spacious house. She also bought new bicycles for her children to go to school.
She shared: “I never expected my life to change so much. The program not only helped me access capital but also helped me form the habit of saving and paying off debt little by little without feeling pressured. The program staff are very dedicated, always encouraging and guiding me to overcome difficulties.”
Removing barriers, promoting microfinance
The story of Ms. Le Thi Le is a testament to the change of rural people through the Microfinance Program implemented by World Vision. The program was established in 2006, with the aim of developing livelihoods for the poor, near-poor and low-income households in the four provinces of Thanh Hoa, Hung Yen, Quang Tri and Quang Nam.
By participating in the program, people will have increased access to financial services aimed at the poor; increased resilience through savings and micro-insurance; equipped with knowledge and skills for production development; trained and enhanced capacity in financial literacy, sustainable livelihoods, and smart and effective use of loans.
Speaking at the seminar on "Microfinance: Opportunities for the poor and micro-enterprises to rise up" held on November 29 in Hanoi, Ms. Tran Thuy Linh, Director of the VisionFund Vietnam Microfinance Program, under World Vision International, said: As of September 2024, World Vision's Microfinance Program has helped more than 24,000 children benefit each year; more than 12,600 people have received financial education, including more than 3,500 people from poor and near-poor households.
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| Ms. Tran Thuy Linh, Director of VisionFund Vietnam Microfinance Program, under World Vision International, shared at the seminar. |
In addition to the practical results, Ms. Tran Thuy Linh also analyzed the challenges in establishing and maintaining current microfinance institutions. Low- and middle-income people still face difficulties in accessing microfinance due to lack of collateral. Therefore, solutions are needed to improve the legal and financial environment to help these institutions operate more effectively.
At the seminar, agencies, organizations and communities had the opportunity to exchange and cooperate to promote the implementation of effective microfinance programs, contributing to improving the quality of life for the poor and micro-enterprises in Vietnam.
Associate Professor, Dr. Le Van Luyen, former Deputy Director of the Banking Academy, said that in order for microfinance institutions to maximize their effectiveness, a complete and reliable legal framework is needed. The attention of the Party, the Government and ministries and branches needs to continue to be promoted, especially the close direction of the State Bank. When legal regulations are supplemented and completed, microfinance institutions will have favorable conditions to access domestic and foreign funding sources, helping people overcome difficulties and develop a sustainable economy.
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| Discussion session at the Forum. |
According to Dr. Pham Minh Tu, Deputy Director of the Institute of Banking Strategy, State Bank of Vietnam, it is necessary to research and establish an organization in the form of a microfinance association to gather voices, support and share among units. Microfinance programs, projects and organizations also need to proactively improve their financial capacity, proactively expand capital sources, strengthen cooperation with credit institutions, and provide transparent information on operations and governance to attract investors.
Source: https://thoidai.com.vn/tai-chinh-vi-mo-tu-world-vision-sinh-ke-ben-vung-mo-loi-thoat-ngheo-207942.html
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