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Vietnam: Small Loans Help Poor Woman Escape Poverty

Economic development

Small Loans Help Poor Woman Escape Poverty

Like many fishermen living in Trieu An Commune, Trieu Phong District, 35-year-old Nguyen Thi Be used to earn her living on a small and old boat by sea fishing, but often the family was not able to make ends meet.

In addition to fishing fluctuation and harsh weather conditions, her situation worsened when her sole boat was sunk in a storm in late 1999. All of a sudden, she had no job, and no income to buy food.

Against the odds, the brave young woman did not fall into desperation but fought for her existence with her empty hands. With support from fellow villagers and credit loans from a World Vision-funded micro enterprise development program to make fish sauce, Be overcame her difficulties and was even able to build a new house.

“Thanks to World Vision, I have been provided with loans to develop the fish sauce trade,” said Be. “Sea fishing risks are no longer a threat and my family’s life is more stable.”

In the past, her family lived on inshore fishing which did not bring them enough income and food. The fishing season only lasted six months and their life totally depended on coastal weather and fluctuation of fish catches. For the rest of the year, the family was without food.

When the boat was sunk in a storm five years ago, Be found another way to earn her living by buying fish sauce from producers and retailing them to local people in nearby areas. Then she recognised that profits gained were much lower than if she made and sold fish sauce herself. But it is difficult to start up a new business because it requires some money to begin with.

Being aware of the importance of education for her two children who were eight and four years old at the time, Be struggled to send them to school despite their difficult situation.

Three years ago, Be was supported by World Vision, which gave her access to credit loans. Since then, within the program, she has become an active member of a loan solidarity group, which was established not only for the revolving loans for the poor, but also for giving technical consultation to their specific businesses.

Women in loan solidarity groups have been taught how to make business plans and to do accounting. They can also share their experience in doing business and help each other surmount challenges in their lives.

In addition to talking about business issues such as progress, market information and solutions to problems, they also discuss common issues of the groups including how to help a member pay back her loan to visiting people who have fallen ill. Regular meetings on child rearing, nutrition, common diseases in the community are also discussed.

Be joined the group with a loan worth VND1,000,000 ($US66). She started planning her new fish sauce producing business utilising the local fish of her native Phu Hoi hometown. By carefully applying the knowledge of fish sauce making, she was able to pay back the loan a year later, buy her family’s daily food and save VND10,000 per month ($US7).

The second loan, which was valued at VND2,000,000 ($US130), made her business more profitable. With more capital she was able to buy fish when the price was cheapest and store them for a year. Be’s husband travelled to Phan Thiet City, the Southern costal province of Binh Thuan, where fish sauce and fish sauce production are well-known nationally, to learn from the local knowledge.

As an acknowledgement of her progress in business management and the efficient use of the capital, World Vision provided her with a third loan valued at VND4,000,000 ($US260) to expand her business. Using this loan, Be invested in buying more fish containers and 17 tons of fish raw materials. As a result, in 2003, she produced 7,500 liters of fish sauce and sold them all at local markets.

“The benefits that fish sauce production have brought about for my family are marvellous,” Be smiled happily. “Risks of fishing on the sea do not threaten me anymore.”

The family has now upgraded their old thatched roof, which usually leaked in rainy seasons. Her children feel more comfortable and safe in the new house with firm windows, protecting them from strong winds and fierce heat of the central costal region’s severe weather.

“At present, the business gives me a valuable asset which I have long awaited for,” said Be. “It is this nice and stable house which keeps us safe living in this storm-prone area.”

Apart from the new house, Be has bought a television set, new beds, a cupboard and a wardrobe. A second-hand motorbike was also purchased to transport fish sauce to neighboring villages. More importantly, Be can send her two children, who are now 12 and eight years of age to school.

“With improved conditions, I feel happier,” said Be. She said that since the business started, “we have had another child and he is now three years old.”

“I hope to have more capital to develop this business because I could make a fortune from it,” Be added.

Be is one of hundreds of women in Trieu Phong District whose lives have witnessed remarkable improvement and development from loans and skills provided by World Vision.

Nguyen Thi Be has used small loans from World Vision to develop her fish sauce trade

Learn More: > Micro-Enterprise Development

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