Case study: Experiences in managing microfinance from VBSP is extremely valuable
(VBSP News) That was the assertion of Mr. Md.Abul Khaer, Program Coordinator Development Initiative for Social Advancement (DISA) during the last exposure visit to VBSP in last July.
Mr. Vu Minh Thuong (3rd from left) presents to DISA delegation and Proyas Monobik Unnayan Community Society of new guava species that he invests from loan of VBSP.
During the exposure visit in Vietnam, the mission of DISA Organization and Proyas Monobik Unnayan Community Development Organization of Bangladesh has visited best practices of VBSP’s customers in Hanoi and Quang Ninh province.
In Quang Ninh, the delegation visited the household of Mr. Vu Minh Thuong, Dong Dien village, Son Duong commune, Hoanh Bo district. From a poor household working as hired labor to earn a living, in 2008 his family borrowed VND 30 million from poor household program of VBSP to invest in planting 200 green grapefruit trees, more than 100 dragon fruit trees, 100 red guava trees and raising chickens. With his diligence, hard work together with application of science and technology into breeding and production, to 2012, his family has escaped from poverty. In 2015, Mr. Thuong household continues to take VND 50 million from the loan program for the newly escaped from poverty to expand trees planting and husbandry. At present, his family has become a middle income household, a best practice for neighbors.
In recent years, VBSP system has created favorable conditions for people to access preferential loans for economic development. In particular, loan program for job creation in Hanoi has been providing opportunities to improve people's lives. The mission of DISA and the Proyas Monobik Unnayan Society visited Nguyen Thi Nu's family in Ha Tan village, Tan Linh commune, Ba Vi district (Hanoi), who borrowed from Job creation program and get high economic efficiency.
The mission visited milk cow raising model of Ms. Nguyen Thi Nu family
Previously, Nu's family was economically disadvantaged. The couple brushed up on many jobs to make a living, but life was very precarious. In April, 2017 through Savings and Credit group managed by Women's Union at the village, she was given a preferential loan of VND 50 million from job creation program to raise milk cow. Thanks to her hard work, so far, she has developed the herd to 10 cows, the cows have begun to supply milk, promising a near future of good income for her family.
Ms. Nu said: “Thanks to the preferential loan from VBSP, our family has the opportunity to invest in expanding breeding thus, raising our children. Without this loan, my family does not know when to have money for raising cattle."
Md Abul Kalam Azad, Program Manager of Proyas Monobik Unnayan Society said that “Lending to the poor and policy beneficiaries of VBSP is very effective, these models are well worth to learn, replicate and experiences in managing and channeling loans are lessons that we can apply in the future in Bangladesh”.
The performance of Ba Vi Milk Joint-Stock Company was highly appreciated by members of the mission
Visiting Ba Vi Milk Joint Stock Company in Cam Phuoc Village, Tan Linh Commune, Ba Vi District owned by Mr. Dao Cong Truong. In 2014, the company borrowed VND 300 million from Job creation program of VBSP to invest in machines and equipments for production. Truong confided: "Thanks to bank’s loan, my company can buy equipment, expand production. Since then, the company has created regular jobs for 50 employees. Monthly salary paid by the company is 8 million at the highest and 3 million at the lowest”.
Through the introduction of Director Dao Cong Truong with the mission of DISA and the Proyas Monobik Unnayan Society on the difficulties of the company since its establishment, thanks to concessional loans from VBSP, the company has grown up and created jobs for many workers.
Md.Abul Khaer, Program Coordinator Development Initiative for Social Advancement asserted that the policy credit program that VBSP is implementing has helped the poor and policy beneficiaries to improve living standard, escape from poverty. Thanks to loans from VBSP and support of science and technology, the position of the poor in Vietnam has improved which is a prerequisite for micro-economic development in Bangladesh.
After visiting the grassroot network of VBSP, the delegation had a meeting with the senior management board at the Headquarters.
Deputy CEO Nguyen Duc Hai had an opening speech at the Headquarters
Source: VBSP News
- Newsletter Vol 25
- Financial literacy for the poor and other disdadvantaged groups
- Assessment of the World Bank on the role and achievement of Vietnam Bank for Social Policies
- Vietnam Bank for Social Policies is currently the leading microfinance provider in Vietnam and one of the largest microfinance providers in Asia
- Big step forward in awareness and action
- Pilot program for potential customers before working in the Republic of Korea
- Local resources need to be strengthened to support the poor and other vulnerable groups affected by Covid-19
- Hanoi supports disadvantaged groups to overcome impacts of COVID-19
- The poor receives VBSP’s support after damage caused by COVID-19
- VBSP supports disadvantaged people and workers affected by Covid-19 pandemic
- The poor in ethnic minority and mountainous areas entitled to apply for maximal loan size of VND 50 million
- Growth must be associated with financial inclusion quality
- Improve financial inclusion for Mekong Delta region
- VBSP aims to provide 1.8 billion USD to southwestern region in 2030
- VBSP participate in the round-table discussion with the Dutch Queen on Financial Inclusion
- Press Release: Taking prominent position in providing microcredit with 77% of market share, VBSP plays an important role in promoting financial inclusion in Vietnam.
- Press Release: Mobile Phone banking – Financial inclusion and economic empowerment for the low income population and women in Vietnam
- Innovative Technology for the poor to access financial inclusion in Vietnam through Mobile Money
- Over 1.4 million turns of the poor access inclusive finance in Hanoi
- Permanent home for the poor in Vietnam
- VBSP attended National financial inclusion strategy to 2025 with a vision to 2030 conference
- Ensuring preferential funding for disadvantaged students
- The address for the poor and policy beneficiaries in Tuyen Quang province
- Financial literacy app for the poor, women, low income, MSMEs and other last-mile populations
- Participation of local authorities in VBSP's activities
- "Midwife" for young people to get rich
- Savings and credit group model: Best practice from VBSP
- Providing rural financial services for the poor: Best practice from VBSP
- Accelerating access to financial services for the poor: Best practice from VBSP
- Newsletter Vol 25
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