Anh Chi Em : Social microfinance in Vietnam
Anh Chi Em : supporting poor families from ethnic minorities in the mountains of North Vietnam
In Vietnam, the microfinance sector is dominated by the State banks that offer subsidised loans with extremely low interest rates, but with no support system for the borrowers. These services are not always suitable for the most vulnerable.
Dien Bien is Vietnam’s poorest province: more than half of the families, predominantly from ethnic minorities, live below the poverty line. Entrepreneurs du Monde launched Anh Chi Em in 2007 to facilitate access to financial services tailored to their small agricultural or retail business. The programme focuses on support services, an essential part of the success of these micro-entrepreneurs.
Since the end of 2015, Anh Chi Em program is operationally self-sufficient (revenue covers expenses). Anh Chi Em is becoming sustainable to support Vietnamese people living in poverty.
The loyalty rate is 85.7% and has continued to progress positively during 2016. This loyalty rate is a good indicator of Anh Chi Em’s quality of services and the level of satisfaction from its beneficiaries.
Anh Chi Em’s beneficiaries profiles
In 2016, 40% of Anh Chi Em beneficiaries were living in extreme poverty. This result is in line with the Anh Chi Em mission and context: ethnic minorities represent 50% of Vietnam’s poorest population even though they only represent 14% of the population. Furthermore, women from these ethnic minorities are much more impacted by poverty than men. 92% of beneficiaries are from ethnic minorities (mostly from the Black Thai ethnic group) and amongst them 85% are women.
Most beneficiaries get their income from agriculture and only 35% of households have at least one family member who gets an income from a non-agricultural activity. In addition, access to essential services such as education is limited: only 20% of children aged 11 to 15 are schooled.
To this end, ACE’s actions aim to progressively and sustainably lift all the microentrepreneurs who join the program from this extreme precarity.
Read the complete fact sheet
Anh Chi Em’s financial partners