Credit help women in mountainous area escape from poverty

Like many other locals, life of most women in Chợ Mới district, Bac Kan province still meet plenty of disadvantages as major income generating activity here is agriculture while other production activities utilizing local advantages are very underdeveloped. To improve the situation, VBSP together with local Women Union has provided preferential loans for poor households to develop generating income activities.

Upon signed trust contract, district Women Union guides its grassroot level to build board managements that are responsible for VBSP’s loan management and demand for capital of the women members. Besides, the Union also cooperates with VBSP district to conduct training courses on basic credit management skills, helping local staff to manage loans effectively and scientifically. In addition, to complement help women have better knowledge on science-technology to apply in production, theUnion has coordinated with District Department of Agriculture and rural development to conduct about 200 training courses to disseminate science-technology on  plants and domestic animals care for nearly 7,000 women. Due to sucessful execution of loan entrust, management and utilization, loans have shown many positive impacts.

Prior to 2003, source of capital managed by Women Union was only VND 4.4 billion total number of customers was 2000, up to 2009 the number is VND 46 billion and 3,000 turns of customers who are members in 103 savings & credit groups. Thanks to the loans, women have developed breading and cultivation of high economic value trees and animals applying advanced technology. Besides small scale production, many women even managed to diseminate the integrated model of VND 30-50 million/ ha field, which can be seen in Cao Kỳ, Tân Sơn, Như Cố, Yên Đĩnh communes etc,. Women has invested in planting sugar-cane, ginger, watermelon  in rotation with paddy which bringing about higher profit.

It can be said that, loans from VBSP has helped many members of Women’s Unionin economic development and poverty elimination as well as facilitating them in improving their living standard and their status in families and in the society, thus, effectively contributed to local poverty elimination efforts.

Trần Hồng Hạnh