Making Financial Services Accessible

and Affordable to Women

MBA. Phan C Nhn May 2015

The views expressed in this paper are the views of the authors and do not necessarily reflect the views or policies of the Asian Development Bank (ADB),
or its Board of Governors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this paper and accepts no
responsibility for any consequence of their use. The countries listed in this paper do not imply any view on ADB's part as to sovereignty or independent
status or necessarily conform to ADB's terminology.

Contents

Part I - General Introduction on VBSP

Part II - Making Financial Services Accessible
and Affordable to Women
Part III - Achievement

Part I

General Introduction
on VBSP

VBSP establishment
VBARD
1995

Mission:

Bank for The Poor

2002

Time

Not for profit state-owned microfinance bank lending to the

poor to assist Vietnamese Government to fight against poverty

Vision:

Satisfying 100% of poor households needs for access to

financial products and services
90% of customers live in rural, mountainous areas and islands
with disadvantaged conditions

Part II

Making Financial
Services Accessible
and Affordable to
Women

Credit Programs also aiming women

Poor Households
Near poor Households
Disadvantaged students
Job Creation program
Migrant workers

Target
Clients

Safe water supply & rural sanitation

Traders doing business in disadvantaged areas
Business & production units with drug-detoxified
employees
Business & production households living in
specially disadvantaged areas and communes
Specially disadvantaged ethnic minority households

Housing purpose at flooded areas

Others (Entrusted by donors or mandated
by the Government)

Approaches Improving Access

to Credit by the Poor & Women
Small Average Loan Size :
VND15 mil (~USD 710)/loan, 35,7% GDP/head in 2013
Largely Non-Collateral Loans:
Only 5 out of 19 loan programs require collateral
No Transaction Fee

Flexible Duration Loan Programs

Short-term: < 12 mos.; Medium-term: 12-36 mos;
Long-term: 36-60 mos.

Loan Repayment Plan Suitable to the

Cash Flow of Customers

Saving Services

In 2009, VBSP has launched a new savings model :

"To mobilize savings from poor communities
through savings and credit groups ( SCGs) ".
In particular, the poor deposit savings with a small
amount atleast VND 1,000 (5cent) which creates
the awareness for the poor and women to spend
their savings to make up their own capitals and get
familiarity with financial services.

Repayment Plan: Different

Installments Based on Cash Flow
Month Jan Feb Mar Apr May June July Aug Sept
Income ***** ** * * * * * **** ****
**
Expend ***** ***** ***** ** ** *** *** **** ****
iture ***** ** **
** ** **
Savings * * * * * * * * **
Credit ***** ***** ***** **** *** * *** **** *
** ***** *****
*

Oct
****
***
****

Nov
*****
*****
*****

Dec
*****
*****
*****
*****
*** ***** *****
***** ***
* * *

Service Outreach to reduce

mobility constraints.

63 Provincial and Municipal Branches

626 District Transaction Offices

196,931 Savings & Credit Groups

at Communes/Wards
10,904 Fixed Date Transaction Points at
Communes/Wards
Mobile Transaction Teams

Savings and Credit Groups

30-60 members
10-15 members
(mountainous)
Facilitating the
loan management
and savings
Commission based
activities

Forming

Management Board:
Group Head
Deputy Head

Group Charter
Outsourcing contract
by the VBSP

Role of Women Organizations

Savings & Credit Groups
Supporting activities

Supervising the loan

Collecting interest, savings
Self-selecting borrowers

Choosing target clients

Introduction of VBSPs lending programs

Fixed Date Transaction Points

3km<

100 % of communes
reached by VBSP

>3km

Mobile Transaction Teams

Organization:
Team Leader
Accountant
Cashier
Functions:
Disbursement
Loan collection
Loan review &
supervision
Risk management
Application receipt
Fees and
commission payment
Meeting with mass
organizations

Fixed Date Transaction Method

*

Mobile transaction at
communes

Server

Part III

ACHIEVEMENTS

Knowledge Transfer

Collaboration with state agency in agriculture

extension, business models, know-how to members of
saving and credit groups including women

Economic Impact on Women

2002-2014
Outstanding loan to Women: VND
52,000bil ($2.2 Bil) 44% of total
Savings of women: VND 1,800 bil
( $90 mil) - 50% of total
2.8 million women households
borrowing -40% of total
Non-performing loan: 0.4%

Womens Economic and

Social Empowerment

Providing small loans, technical assistance and

targeted service outreach,VBSP makes
financial products and services accessible and
affordable to the poor and women.

VBSP contributes to raising womens

status financially and socially so that the
disadvantaged women can develop themselves
and have greater roles in their communities.

Impact on Women