Introduction

World Vision Vietnam (WVV) has been promoting micro-credit activities for more than 10 years as a major component of most of our Area Development Programs (ADPs). All credit activities are standardized under uniform management of the Microfinance Unit (MFU) which now operates as an integral section of WVV and receives technical support from a worldwide network of VisionFund International (active in 38 countries). MFU provides microcredit service to poor and near poor households in and around ADP areas as a continuum of ADP support and to contribute to overall economic transformation and particularly well-being of children.

Operation Overview:

Since October 2006, MFU has operation in five branches located in 10 needy ADPs covering 10 districts including Phu Cu; Kim Dong (Hung Yen); Cam Thuy, Lang Chanh (Thanh Hoa); Trieu Phong, Hai Lang and Vinh Linh (Quang Tri); Hiep Duc, Tien Phuoc (Quang Nam) and Hoa Vang (Danang). With technical support of VisionFund International, MFU has been applying standardized operational and financial processes that ensure right targeting of client, effective credit delivery, and financial accountability.

Main interventions:

• Providing microcredit from US$ 25 to US$ 750 for business development purposes
• Continuously developing and serving social loans for child well-being purpose
• Closely integrating with other projects of WV to provide technical knowledge for household clients on farm cultivation, animal raising, and micro-entrepreneurship
• Equipping clients with financial literacy to effectively use loans as a means of economic development, household budget management, and overdebtedness avoidance
• Instantly learning from best practices of VisionFund International and other Microfinance Institutions in Vietnam to improve products to meet diverse needs of poor households, and to work towards the balance of social responsibility and financial sustainability

• Approved 4,420 new loans, serving a total of 9,500 active clients
• Disbursed a value of US$ 1,420,000, adding to the outstanding portfolio of US$ 2,022,000
• 100% borrowers are from rural areas with 90% of them female, impacting the lives of 11,727 children
• Created and sustained 9,365 full time equivalent jobs for borrowers and their employees

MFU plans to expand to reach more low-income clients while maintaining portfolio quality within the acceptable framework of WVI standards.

MFU’s representative at the ceremony