Follow us on: 
facebook
youtube
flick
 

Limited access to credit tough challenge for cooperatives’ growth

Print Email

 

workshop joint programme2Difficulties in credit access
Across the five value chains supported in the joint programme on green production and trade to increase income and employment opportunities for the rural poor, households and cooperatives are often confronted with the need to borrow money to meet the needs for buying raw materials, equipment, meet production orders or to manage price fluctuations. However, households and producer groups often face difficulties to access loans from the banks and in some cases, they have to borrow from locals money lenders against interest rates as high as 10 percent/month.


ILO study on needs for borrowing money and credit providers
Limited access to credit remains a major constraint limiting the growth of cooperatives. Against this background, ILO commissioned a study to determine the needs for borrowing money and map the available credit providers. The study revealed that the need for loans is particularly high for households in the seagrass, lacquer and sericulture value chains, which often have to cope with fluctuating and low prices for their raw material, and the need for increased spending during the peak season for planting and harvesting. Many households have loans outstanding, ranging from VND 3 million to VND 400 million, often combined from two or three sources, including private money-lenders.

The survey also indicates that cooperatives face many difficulties to obtain a loan because:

  • the financial health of the Cooperative is weak
  • lack of leadership and management capacity, and difficulties to prepare a business plan or financial statement
  • prevailing negative prejudices against cooperatives, caused by the massive collapse of cooperatives in the 1980s

As a result, Cooperatives often have no other option other than asking one of its members, who has land certificates that could serve as a guarantee, to apply for a loan.

Workshops to inform on study findings and get practical advice
Within the framework of the joint programme, ILO has built capacity among poor grassroots crafts producers and supported the establishment of business groups and cooperatives in four provinces to share information on the possible sources of micro-financial sources, as well as the specific conditions and requirements.
The training covered three main topics: basic understanding about microfinance; the importance of saving; and budgeting. The training effectively enabled groups to identify microfinance providers in their locality and to analyze advantages and disadvantages, as well as specific conditions and barriers to access credit. They also received practical advice and tools to manage their budget and practice savings. During the training, groups prepared their action plans applying knowledge gained, which they will share with other members of their business groups and family members. The prepared action plans will be implemented in coming months with the support of the Cooperative Alliance in respective provinces.

Read more?

Producer groups and cooperatives are in a better position to access credit

Spotlight

myhealth-myright_en.pdf.png

WORLD AIDS DAY MESSAGE 2017

1 December 2017

Michel Sidibé
Executive Director of UNAIDS
Under-Secretary-General of the United Nations

This World AIDS Day, we are highlighting the importance of the right to health and the challenges that people living with and affected by HIV face in fulfilling that right.


contest_680.jpg

Community spaces design contest for an exciting hanoi

Ha Noi, October 17/10/2017 - Aiming at improving the living environment and bringing culture and art to the community towards a better urban future, United Nations Human Settlements Programme (UN-Habitat) successfully developed the project “Promote participatory, community-based and youth-led approach in safe, greening public spaces in Hoan Kiem district toward a pro-poor, inclusive and sustainable urban development” (hereinafter called Public Spaces project) under the Block by Block program with Mojang, the makers of the videogame Minecraft.

 

Deadline for round 1: From 17/10/2017 to 04/11/2017 Extended to 9 November 2017


op-ed-juv-justice-390.jpg

Harsh punishment for child offenders doesn’t prevent further criminality

The age at which a child, can be held criminally liable is a controversial issue around the world. Within Viet Nam, this issue is currently being grappled with in the Penal Code amendments. Some argue that a "get tough on crime" approach is necessary to punish children to prevent further criminality.

However, international research shows that because of their developmental stages, labelling and treating children as criminals at an early age can have serious negative impacts on their development and successful rehabilitation.


rc_ai_new_year_card_300.jpg

New Year Greetings from the United Nations Resident Coordinator a.i. in Viet Nam

 

On the occasion of New Year 2017, on behalf of the United Nations family in Viet Nam I wish to reiterate our appreciation and express our warmest wishes to our partners and friends throughout the country. We wish our partners and their families in Viet Nam peace, prosperity, good health and happiness in the coming year.

As we enter the second year of the Sustainable Development Goals era, we look forward to continuing our close cooperation for the sake of Viet Nam’s future development; one which is inclusive, equitable and sustainable, with no one left behind.

Youssouf Abdel-Jelil
United Nations Resident Coordinator a.i. in Viet Nam


WAD2016.jpg

UN Secretary-General Ban Ki-moon’s message for World AIDS Day, observed on 1 December

 

Thirty-five years since the emergence of AIDS, the international community can look back with some pride.  But we must also look ahead with resolve and commitment to reach our goal of ending the AIDS epidemic by 2030.

There has been real progress in tackling the disease. More people than ever are on treatment.  Since 2010, the number of children infected through mother to child transmission has dropped by half. Fewer people die of AIDS related causes each year.  And people living with HIV are living longer lives.

The number of people with access to life-saving medicines has doubled over the past five years, now topping 18 million. With the right investments, the world can get on the fast-track to achieve our target of 30 million people on treatment by 2030.  Access to HIV medicines to prevent mother to child transmission is now available to more than 75 per cent of those in need.