Vietnam – Belgium credit program strives to reduce women’s poverty

Thanks to timely financial support, many women have succeeded in overcoming poverty

 Mrs. Chung Thi Huong – Chairwoman of Women’s Union in Nhon Trach district, one of 3 areas where the project is developed – stated that, after 9 years of running the project and thanks to the proper management and operation, it has attracted women to participate in the Union, which is, in turn, leading the economic growth and reducing a great deal of poor households at local area. The number of women joins regular activities at the Union more and more increasingly. The prestige of the Union is therefore elevated, which influences over raising the membership for the Union. For example, the rate of women members till the end of 2002 was calculated by 47.04% and has increased by 79.71 till the end of 2010.  

Head of Vietnam – Belgium Project Management Board at Tan Van ward, Bien Hoa city, further stated that the board has loaned 157 members an amount of VND 148 million and there are now 2,227 loans released with the accrued capital up to VND 3.1 billion. In addition to the financial support, women are trained for livestock husbandry, production and experience from business success, which helps women to put their faith in the Union and more actively participate in movements led by the Union. The project contributes to attracting more women to Tan Van ward Women’s Union. Before 2002, the total membership for whole ward is 2,197 and until 2010 it has increased by 2,849. Most of members in the project are living affordable lives and the loan has been utilized in an efficient and proper way. Previously, quite a few women did not afford to do their commercial and breeding business and had to pay high interest on that loan. However, after accessing to the project, these women have learned how to save and accumulate to be independent of loan of high interest and many of them afford to buy necessary stuff for their own families, bring up their children and live better lives as well. The project also contributes to eradicating hunger and reducing poverty at this local area. For 9 years, there have been 36 women keeping poverty away and doing business effectively on the loan.

According to the management board of Vietnam – Belgium project and provincial Women’s Union, one of the first impacts that Vietnam – Belgium credit project has brought about is its powerful attraction to a lot of women to join the Union. For a very initial purpose as the program of hunger eradication and poverty reduction for those poor women who wish to have access to the capital that helps develop their own families’ living conditions and prosper themselves by their labor and creativity, after 9 years, the project helps them to rid out of poverty and take effective advantage of the loan. Hence, it also inspires them to enroll and get more involved in the Union. Specifically, in 2002 without project, the number of poor households at 10 wards and hamlets was 1,326 and decreased by 701 households, and the annual membership when running the project is equivalent to and exceeding the assigned target. At the hamlets and wards where the project is developed, 27,486 new members are accepted into the Union. Membership of the previous year is always higher than that of the following year, which amounts to an average percent of 15 – 20%.

High results in raising membership are gained due to group dissemination where the Union has created various contents to make it more attracting and realistic such as guideline, policy, law, emulative movements to establish happy families, experience exchange in terms of production, economic development, birth health, drug prevention, HIV/AIDS, criminal and social problem struggle,... Therefore, more women are joining the Union.

Not only are the role and position of Women’s Union improved at local area, but the project also have impact on raising ability and living condition and loan utilization for the poor women at rural areas where the project is located. In fact, most of poor women rarely have access to credit sources as they fail to give mortgage for the loan, which causes them to accept the loan of high interest from black loan market. The project has made these women pleased as they can reach the loan of low interest without any mortgage. Moreover, thanks to the project, they have opportunity to participate in the talk, training organized by the Union to improve their knowledge of developing family economy, awareness of the Union’s activities and membership right and duty.

Since they are financed and trained for production and husbandry scientific and technological know-how, business experience and proper behaviors towards project operation regime, the Union becomes trustworthy to them. Since then, they uphold mutual support and solidarity to help one another to overcome difficulties although the value of loan is not too considerable. However, the loan value may increase from time to time and the due time will be extended, which forms a habit of planned saving and accumulation.

Mrs. Dao Nguyen – Chairwoman of provincial Women’s Union and Head of Project Management Board – comments that there is a difference that, after 9 years, most of members in the project are living stable lives and none wastes their loan but most of them are using the loan effectively. More importantly, those who used to be very unconfident and undetermined are becoming stronger and more confident after joining the group activity, which helps women’s social and family role and position to become clearly increasing. One special point of the project is the policy of saved credit that women can be taught to realize the benefit of saving habit to invest in their husbandry or business development. To make it strengthened, the project management boards at hamlets and wards have actively recommended members to have access to other credit programs and that has proved its efficiency. In the course of 9 years, the project has introduced more than 5,367 members to reach the loan from credit and saving programs such as CEP, bank of social policies, bank of agriculture and rural development,..., which makes up 75% and values VND 27.9 billion for economic development and gradual poverty evasion. There have been 202 women out of total 630 households reportedly evading poverty.

Reported by N.Le, Translated by Minh Minh