Local activities

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Content is not avaiable in English.

Content is not avaiable in English.

In the early90s when Vietnam's economy shifted from the subsidy mechanism to the market mechanism, in the northwest area of Son La province (one of the poorest provinces of Vietnam) has appeared Catimo Coffee trees on barren mountains, this is the kind of crops bring higher economic value and many people around the world love to use.

On August 27^th 2013, M7 Microfinance Institution Limited coordinated with The People Committee of Dien Cong commune to handover 03 charity houses for 03 poor households of the commune. The total value of 03 houses  are VND 590 million, in which Uong Bi branch supported VND 150 million. The rest of the value was contributed by The People Committee of Dien Cong commune by mobilizing people, relatives, businesses in the area contributed  working days and materials. This is a significant work of the branch together with the Uong Bi city contributed in the program “New rural construction” at the region.

Mai Son Fund for Assistance to Ethnic minority Women currently operates at 12/21 communes and towns of Mai Son district, where many ethnic groups live, including ethnic minorities accounted for 80% (Thái, H’mông, Sinh Mun). The percentage of poor household is still high-37%, low intellectual level. Main occupation is agriculture and animal husbandry, staple crop is maize. Little farming land, there is infertile soil but people couldn’t invested because of the lack of capital, leading to the increase of deforestation to find fertility soil, ecological imbalance, flooding and drought frequently occur. In addition, idle labor force is large in here. Supported demand conditions for economic development, improve the lives of poor people is necessary, especially access to microfinance, scientific and technical services, market information and other social services.

In recent years, people have access to credit to start small businesses, improve production and animal husbandry in the market economy. Currently, the Fund's clients are poor women, ethnic minorities and low-income people in 12 communes and towns of the district. In the district is still a large potential market; these are the poor in 9 communes of the district do not have access to credit sources.

Business objectives from 2008 to 2012
Increase the financial services provided to 4,600 clients and 2,000 new clients (poor women) in one new branch of the district. The rate of return is 99% and 25% of the outstanding principal is mobilized from client’s savings.
Mai Son Fund for Assistance to Ethnic minority Women seeks funds to expand financial services through the systems of 5 transaction offices in the total of 13 communes, towns and one expanded commune, bring the total membership to 8.600. Capital to expand financial services will be sought from donors and Cordaid preferential loans and savings mobilization. In particular, funds from Cordaid will provide financial services to the existing 2,000 clients and 2,000 clients in expanded branch. All services will be provided with a financial interest to ensure the sustainability of the organization. The recovery of the principal is 99% and minimum 25% of poorest clients participating in the Fund's loans.
In order to achieve this fundamental objective, Mai Son Fund considered the improvement of staff ability and management, promoting human resources operate effectively.
Improve and develop new products
Loans and savings products of the Fund improved every year to match demand and local economic conditions. Diversification of the loan, the loan term, the purpose of use of capital and return on the needs of clients to ensure the good recovery of capital and easy access by the poor. Mai Son will join the Security Mutual Fund - M7, Product of the Mutual Fund will be designed on the basis of the results of the needs assessment. Specifically:
In 2008: will conduct a need assessment, with the help of RIMANSI will design suitable micro-insurance products and will conduct staff training and set up Mutual Fund office in the area of the province.
• In 2009: upgrade existing loan products (such as loan size, loan term) in accordance with member needs, expanding old-age savings products. Continue to provide loan and saving services for all the members.
• In 2010: evaluation of all products, improvement and completion of services, and continue to provide services to all members.
Currently, the Fund is mobilizing capital to reach the legal capital of VND 05 billion to early register to become the Microfinance Institution by Decree 28.
The Fund complies with all the requirements of Decree 28.Conducting independent audit process. Applying the management software. Mobilizing capital to reach the legal capital of VND 05 billion. The management board of the Fund will prepare dossiers and procedures for licenses, will recruit and train qualified staff to meet with the new management.

On the basis of the achievement of the basic criteria for three years, the Fund will complete the targets to 2012 to get a growth rate of the indicator of members, lending, total assets and profits ...to get a sustainability of microfinance institutions in the M7 system
 

In order to guide the operation of the Fund in accordance with the requirements of Decree 28/CP and 165/CP of the Government, on August 2008 the Fund agreed to convert the Fund’s organizational model to be neat and efficient. From 11 transaction offices then have been consolidated into 03 branches, each branch has 3 to 4 transaction units. Each branch has 03 officers, Chief of branch, account and cashier, the rest is technical staff.

After 6 months of transition, from 7/2008 to 12/2008, the new members of the Fund are 374 members, bringing the Fund actual members to 6.408 members; savings balance from VND 6.3 billion (7/2008) has increased to VND 7.5 billion  in 12/2008 and loan outstanding from VND  11.9 billion (7/2008), has increased to VND 13.6 billion in 12/2008. The rate of return is 100%. Currently, each technical staff manages 356 members (increase of 2.4% compared to the prior conversion); manage VND 419 million of savings (increase of 17 %) and manage VND 755.5 million of loans (increase of 14%).

Member development process is very slow because of the lack of capital, the loans don’t meet the needs of members that lead to number of members out of the program is quite high).However, when operating under the branch model, the transaction that was previously difficult as An Sinh, Tan Viet have been supported by neighboring communes so that the number of members and loan outstanding is higher than before transformation. In addition, the coordination of capital in the branch becomes more favorable; particularly, financial management and member management are more closed, there was no any risk happening. Team of officials of Management Board working more professional and efficient when technical staff can works diligently with membership development, evaluation of loan applications and loan management.

 By assessing the competition of end of 2008, the 3/3 new branch transformation are pretty and excellence. Activities of the branches were put into place and operate more efficiently. At the conclusion of the of PNT audit company in January 2009, the Dong Trieu Fund for Assistance to Women has good financial management and implementation of construction of Fund’s charter.