EXTENSION OF MICROFINANCE AND MICROINSURANCE FOR INFORMAL WOMEN WORKERS

1
EXTENSION OF MICROFINANCE AND MICROINSURANCE FOR
INFORMAL WOMEN WORKERS
OVERVIEW OF THE PROJECT

• Nguyen Thi Bich Van
• National Project Coordinator

2
General facts

• In merely 10 years (1993 2004), Vietnam has
  reduced by 60 the population living in poverty.
• However, nearly one in four Vietnamese households
  (24.1) is still living under the poverty line in
  2004.

3

• Poor people, especially women, are more
  vulnerable to risks and economic stresses
• Social protection mechanisms are still limited,
  and most workers are excluded especially in the
  informal sector
• Social protection is a high priority for GoV
• ? Coverage of the whole population (SEDP 06-10)

4
Challenges of poverty reduction

• To lift people out of poverty
• ? increase their income
• To protect them from falling back
• ? reduce their vulnerability
• Microfinance has the potential to address both
  of the above challenges

5
Microfinance for Poverty Alleviation Two Sides
of the Same Coin
Financial Services to Lessen the Impact of Risks
Microenterprise Loans to Boost Household Income
6
The Project

• Launched on May 20th, 2003
• A French government funded project
• An ILO MOLISA partnership
• A research action project

7
Goal and Purpose

• Goal Development of innovative social protection
  mechanisms to reduce the vulnerability of poor
  women in the informal economy
• Purpose Identification and pilot testing of risk
  managing financial products
• ?Finding a self-financing social protection
  alternative

8
Methodology

• Demand-oriented participatory approach
• 1) Initial assessment of demand supply
• 2) Identification of 3 MFIs partnership
• TYM
• Ninh Phuoc Women Assistance Fund
• Dong Trieu Women Trust Fund

9

• 3) Technical assistance to partner MFIs to
  develop and pilot test financial products
• Flexible Savings
• Personal life insurance
• Mutual Assistance Fund

10

• 4) Capacity building awareness raising
• Training courses
• Product development in MF (Nov 03)
• Making insurance work for MF (July 04)
• Financial analysis for MFIs (Aug. Sep. 04)
• Market research for microfinance (Oct. 04)
• Making microfinance work Managing for improved
  performance (May 05)

11

• Study tour / Cross visit to MFIs in the
  Philippines (June 04)
• International conference on Microfinance in
  France (June 05)
• Discussion paper on microfinance
• Short film on microfinance shown on TV

12
Review of product development process

• Market Product Development Research
• Identify the research issue
• Understand clients needs (FGD, PRA)
• Develop concept
• Test product prototype
• Pilot Test

13
1. Compose pilot test team


4. Prepare all systems
2.Develop testing protocol
3. Define pilot test objectives
10. Continuously evaluate the Pilot test
5. Modelling financial projections
9. Start product test
7. Train relevant staff
8. Develop customer marketing materials
6.Document Products Definition procedures
MicroSave Pilot test process