Hanoi: Introducing our local partner: Binh Minh

Ms. Tuyet Credit officers recording loan activities at Branch No. 2

Binh Minh was established by Save The Children United States (‘SCUS’) in 2004. Binh Minh

aims to become one of the leading financially sustainable institutions in Vietnam improving the lives of women and low-income households by providing suitable, convenient and friendly microfinance projects by professional staff. The dynamic force behind Binh Minh is Ms. Dinh Tuyet, a young Vietnamese woman who left her position at SCUS to serve as Director of Binh Minh. Ms. Tuyet has recruited a dynamic, young, entrepreneurial and devoted staff of 20 people to handle Binh Minh’s daily operations. Binh Minh currently operates in Dong Anh, a semi-urban province approximately 40km north of Hanoi city center. Binh Minh operates using a group methodology, lending to individual clients, utilizing 5 to 9 members per group. The groups are generally self-selected by the members (or by WU’s cadre) and serve as the ultimate guarantor for each member (‘social collateral’). This means that if one member defaults, the other members repay the defaulted loan before they can continue the loan cycle. The social/group pressure often leads to the high repayment rates (more on the pros/cons of individual vs group lending methodology later..>!) Repayments are collected weekly from the group leader by the credit officer.
Highly regarded as convenient, friendly, and professional, Binh Minh provides financial services at a grassroots level in villages, thereby reducing the cost and time associated with traveling to mainstream banks. Binh Minh offers loans with small, weekly repayments corresponding to cash flows. As the mainstream banks often only offer loans repayable in a lump sum after a one year timeframe, the weekly repayment offers the client a much more flexible adapted product.