Assessment on the performance of the ”Microfinance project for poor women in Tien Giang Province”

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Introduction

The Norwegian Mission Alliance (NMA) is an International Non-government Organization who has been supporting development Projects in Vietnam since 1996. Initially the target group was defined as poor people struck by leprosy. However, NMA made a new strategic plan for the next 5 years from 2001. This broadened both the target group and the scope of work including poor and marginalized group of the population, with a special  attention to minority groups, disabled, women, youth and children. The main objective is “to contribute to a lasting improvement of the target groups quality of life” and accordingly, microfinance has become one of the major Project components. In April 2002, NMA and Tien Giang WU held a series of discussions and a baseline survey assessing the need for loans from local people. The two organizations then signed a Memorandum of Understanding and designed the “Microfinance Project for Poor Women in Tien Giang Province”, drafted action plan as the base for a 4 years agreement (2002 – 2006) signed in June 2012. The main objective is to increase income for poor families in order to improve their living situation and to take responsibility for third own lives. The target group is defined as poor women in rural areas without access to or without availability to formal credits and savings service, who are in need of capital for productive activities to increase their income and improve their living situation. It should be no discrimination of any groups and WU cardres at alle levels.  The projects will be implemented in 8 Communes in Tien Giang Province, including 2 Communes in Cai Be District, 3 Communes in Chau Thanh, 2 Communes in Cho Gao, and 1 Commune in Cai Lay district. In first stage (August 2002 – March 2003), the Project has been piloted in 2 Communes of Tan Hung and My Tan in Cai Be district.

The Project access to warranty groups of 10 members and every 3 groups of 30 members forms a cluster. The Project pursue a principle that loan is provided without mortgage, from small to bigger loan and repayment in installments on both principal and interest should be calculated on the base of cost balance towards financial sustainability.