Bản tin M7

Cordaid delegation’s visit (netherlands) to maison fund for assistance to ethnic minority women in son la province and uong bi fund for women promotion in quang ninh province.

From 16/04/2012 to 23/04/2012, M7 Microfinance Institution Limited was delighted to welcome a representative delegation of CordAid organization (the traditional donor of M7MFI’s branches from Netherlands). The Delegates of CordAid has congratulated on the receiving of establishment license and worked with staff of M7MFI Head Office to get the detailed information about the organizational structure of M7MFI.On 17/04/2012, The Cordaid delegation had a working visit to Mai Son Fund for Assistance to Ethnic minority Women in Son La province. At here, the delegation had meetings with Director of Mai Son Fund, Head of Supervisory board, Head of Transaction office and visited some households, members of Mai Son Fund. The Delegation also shared some valuable experience with Leaders of Mai Son Fund to gradually complete all necessary processes to make M7MFI to become Microfinance Institution in accordance with international standards in the next time.

Publishing the establishment of M7 Microfinance Institution Limited

On 19/12/2012, M7 Microfinance Institution Limited (M7-MFI) received Business License No 010605004 issued by the Hanoi department of Planning and Investment. Earlier, the Governor of the State Bank of Vietnam has granted permits No. 16a/GP-NHNN on 13/01/2012 on the establishment and operation of the M7-MFI.

Abbreviation: M7-MFI
Head Office address: 2nd floor, Lot A9/D5 Cau Giay New Urban area, Dich Vong Hau street, Dich Vong Hau ward, Cau Giay district, Hanoi city.
Telephone:+84(04)373036688; Fax:+84(04) 373036689;
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it ; Website: www.m7mfi.vn
Establishment and operation license No: 16a/GP-NHNN issued by the State Bank of Vietnam on 13/01/2012.
Business license No 0106051004 issued by the Hanoi Department of Planning and Investment for the first time on 19/12/2012.
Activities are allowed to perform:
(1) Capital mobilizing:
a. Receiving deposits in Vietnamese dong under the following forms:
+ Compulsory savings.
+ Deposit of organizations and individuals including the voluntary deposit of microfinance clients (except for deposit for the purpose of payment).
b. Borrowing loans from credit institutions, financial institutions, other individuals and organizations in domestic and abroad in accordance with the law.
(2) Credit providing: Providing credit in Vietnamese dong in the form of loans.
(3) Account opening: Open deposit account at the State Bank of Vietnam, commercial banks.
(4) Other activities: Entrust and being entrusted for loans; Providing financial advisory services related to the field of microfinance; Providing helping services of collection, payment and transfer money to clients of microfinance; To be an agency to provide insurance services.
Charter Capital: VND 15.545.230.691.
Legal Representative: Nguyen Duc Binh, General Director
Capital contributing members:
(1) Mai Son Fund for Assistance to Ethnic Minority Women: VND 6.723.427.139, accounting for 43% of the charter capital;
(2) Uong Bi Fund for Women Promotion: VND 4.152.919.859, accounting for 27% of the charter capital;
(3) Dong Trieu Fund for Assistance to Women: VND 4.668.883.693, accounting for 30% of the charter capital.

Expected date of inauguration: 12/01/2013.

Mai Son Fund for Assistance to Ethnic minority Women

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

Dong Trieu: Each technical staff manages 356 members with VND 419 million for savings and VND 755.5 million for loans.

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.


Within the framework of international cooperation activities of M7 Microfinance Institution Limited (M7MFI), in the recent time M7MFI has had working sessions with experts in investment consultancy from Living in Peace Organization ( Japan).From 20/03/2012 until 23/03/2012, at the Head office of M7MFI, there were meetings between office managers with experts from Living in Peace organization. In the framework of the working schedule with M7MFI, on 21/03/2012, the experts also took a survey trip to Dong Trieu Fund for Assistance to Women in Dong Trieu district, Quang Ninh province. At here, the Experts had a meeting with Director, Head of Internal control board, Head of Transaction office, Credit officers and cashiers to capture the processes and Internal control system, monitoring system and evaluation of the borrower (member of the Fund) and the software system…Experts from Living in Peace also took a visit to households as the members of Dong Trieu Fund to evaluate the effectiveness and impacts of loans on their lives. Experts assess the event of receiving the Establishment license of M7MFI is a great opportunity for M7MFI to mobilize more capitals from domestic and foreign organizations        (particularly from Japan). The two sides agreed to conduct regular exchange of information to proceed a

Cooperation agreement in the nearest future.

The State Bank of Vietnam awarded license for establishment of M7 Microfinance Institution Limited

On March 1st, 2012, The State Bank of Vietnam awarded license for establishment and operation of M7 Microfinance Institution Limited (M7MFI).

Rabobank delegation working visit to head office of M7-Microfinance institution limited

In the morning of October 1st, 2012, the Board of Directors of M7-MFI had a meeting to welcome and work with the delegation of Rabo-Bank (Netherlands) at the Head office of M7-MFI.

RaboBank is one of the leading commercial banks of the Netherlands with area of activities covering from Europe, Asia to North America and South America. Currently, RaboBank has presented in 637 locations in 48 different countries around the world. Rabo-Bank is one of the biggest partners of M7-MFI during the years.
The Board of Directors of M7-MFI exchanged and updated on the activities of M7-MFI duiring the last time and action plan in the coming time. Members of RaboBank delegation has appreciated the efforts of M7-MFI and express their great concern on the M7-MFI’s operations.
M7-MFI is one of the two first organizations M7- MFI in Vietnam liscensed for establishment, thus it is difficult to avoid difficulties.However, RaboBank still believes that with the commitment of all leaders and staff of M7-MFI and with the cooperation and support of RaboBank in the coming time, M7-MFI will grow further. Thus, synonymously with the mission of M7-MFI to support the poor women, low-in come households and ethnic minorities people will be made in a full and complete way.
The meeting ended in an open and friendly atmosphere.

Giảm thuế thu nhập doanh nghiệp: Cứu kẻ đáng sống

Không như giảm thuế giá trị gia tăng, giảm thuế thu nhập sẽ chỉ tác động đến sản phẩm trung gian do vậy tác động tới thị trường sẽ lâu hơn.