Mekong Organization of Microfinance
Tran Thi Hong Hanh has partaken in an entrepreneurship course. With that she was able to open a corner store.
Tran Thi Thu Hong received training in climate-smart goat farming. Hong has also received a loan to buy goats
Le Thi Van took part in an entrepreneurship course to improve her business. Van makes various products from pineapple.
Ho Ngoc Ha received entrepreneurship training. Ha runs a company that makes handbags and hats out of straw. She now has 7 employees working for her.
The microfinance operations of MOM in Vietnam were initiated by the Women’s Union (WU) of Tien Giang province in cooperation with the Norwegian Mission Alliance in 2002. The project started with the commitment and vision to improve the life conditions of poor and marginalized people in the Mekong Delta area.
Our product and service portfolio includes group loans ranging from $250 to $500 with terms of 12 to 18 months, compulsory and voluntary (interest-bearing) savings accounts, and business training and child scholarship programs.
MOM focuses it’s operations on the poor people of the Mekong Delta, especially women, by mobilizing loans and other financial services to help them break out of the poverty cycle. MOM operates 6 branches across the Mekong region. Since inception the institution has made good progress, and the company has applied to the State Bank of Vietnam to become a licensed microfinance organization. As a part of the application procedure MOM was given the status of Social Fund which has given MOM greater operational flexibility in the transition period from being an unregulated microfinance project to become a regulated financial institution.
The MOM business model is unique and is characterized by a close cooperation between MOM and WU. In addition to forty MOM officers, more than three hundred WU officers are involved in MOM`s operations. This brings MOM clients and makes the work of MOM credit officers different from the role of credit officers in comparable MFIs. In relation to some of the key MFO functions like client identification, gathering clients and organizing the group meetings, project follow-up and collection of interest and repayments, MOM officers can enjoy strong and consistent support from WU officers. WU is compensated for the cost of these services while this is balanced by a smaller number of staff in MOM than would otherwise be necessary. The MOM business model is constantly being fine-tuned to the developments of the market.
Facts about Vietnam
- Population: 100 million
- Government structure: Socialist republic with a single-party system led by the Communist Party of Vietnam (CPV)
- 4.2% live under the poverty rate which is $3.65 per day.
- 331,212 square kilometers
- GDP: $429.72 billion USD, and is expected to grow by 6.3% in 2023
- Main source of income:
- Agriculture: Employs 29% of the workforce and contributes 13% to the GDP. Key exports include rice, coffee and seafood
- Industry and Manufacturing: plays a vital role, particularly in electronics, textiles, and machinery