Hanoi: Binh Minh and SEDA

During 2007, EDM partnered with Binh Minh to extend microfinance to poor households in the peri-urbain regions surrounding Hanoi. Due to regulatory issues relating to Binh Minh’s status as a company, Binh Minh has set up a local Vietnamese organization called SEDA. Through SEDA, Binh Minh can continue to expand their microfinance operations, while they evaluate their next steps to transition from Binh Minh Company into Binh Minh Microfinance Bank.

By supporting local partners with successful microfinance operations, EDM has been able to offer financial services to more low-income families in Vietnam. DM has enabled SEDA to commence their microfinance operations in Bac Ninh province, a semi-urban region outside Hanoi. Over the course of 2007, EDM has provided $30,000 of financial support to SEDA, consisting of $10,000 in operational expenses to set up SEDA’s first office (computers, furniture, equipment etc), pay for salaries for staff for first 5 months, and train credit officers and (b) $20,000 in loan capital to support SEDA’s loan release to clients. SEDA recently established a partnership with Kiva Organization to secure 0% interest funding for future loan needs. In October 2007, SEDA launched its microfinance program and serves 134 clients as of December 2007. In return for our support, SEDA provides technical assistance at a very low rate to our Chi Em microfinance project in Dien Bien province.