Micro-business success stories honoured

Building upon the success it enjoyed in its inaugural year, the 2nd Microfinance Forum and Citi Micro Entrepreneurship Awards 2008 took place in Hanoi on December 1. The awards are held in recognition of outstanding efforts by micro-entrepreneurs and microfinance loan officers in contributing to the national poverty reduction programme.

During the course of the forum, four successful micro-entrepreneurs from Ninh Phuoc district (central Ninh Thuan province), Phuc Yen town (northern Vinh Phuc province), Thieu Hoa district (central Thanh Hoa province) and Quang Binh province spoke to the attendees about the difficulties and challenges they had experienced since they established their businesses.

With initial start-up capital of anywhere between 200,000 VND and 30 million VND provided by microfinancial institutions, many livestock breeding, seafood processing, fruit-tree planting, small-size trade, and handicraft production establishments have fared well, having helped households to increase their incomes and generate numerous jobs for local workers.

One such effective model presented at the forum is a fish and poultry farm run by Nguyen Thi Han from Phuc Yen town. In the three years since she received a loan from a fund for the poor to set up her business, Han has worked hard to develop the farm, which currently earns about 1.2 billion VND a year.

Praising the important contributions of the microfinance sector to Vietnam ’s process of poverty reduction, Truong Ngoc Anh, vice director of the State Bank of Vietnam ’s department for non-banking organisations, noted the immediate and long-term difficulties facing microfinancial activities during Vietnam ’s gradual integration into the global economy. As well as limitations in personnel, managing capacity and technology, a shortage of capital remains the greatest challenge to the success of these financial organisations.

In addition, the pressure of providing services for an increasing number of poor and low-income customers, married to the tough business environment has also limited the positive role played by microfinancial activities.

According to Anh, to improve people’s living conditions, particularly in rural areas where the average income is much lower than the urban average income of 800 USD per year, microfinancial activities should continue to uphold their important role in increasing the opportunities for people in rural areas to gain access to sources of capital.

Within the framework of the Vietnam micro-entrepreneurs forum, jointly organised by the Citi Foundation of Citibank and the State Bank of Vietnam , the Citi Foundation presented the Citi Micro Entrepreneurship Awards to 51 outstanding entrepreneurs in recognition of their significant contributions to the national poverty reduction programme. (VNA)