1. LEARNING ROUTE
Development and Modernization of Rural Micro-Financial Institutions in Cambodia and Vietnam
19 to 23 June, Cambodia

2. About the learning route
Objective: To strengthen the capacities of Women Development Fund Managers, Community Groups Leaders and Government Officials of IFAD supported projects in Vietnam by exchanging rural microfinance sector best practices and innovations with Cambodia´s public and private sector.
Organizers:
IFAD Vietnam
IFAD Cambodia
PROCASUR Corporation
Hosts:
PRASAC Microfinance Institution
Hattha Kaksekar Limited (HKL)
Project for Agricultural Development and Economic Empowerment (PADEE).

3. About the router 19% work for IFAD-funded projects at provincial level
31 routers come from four provinces of Vietnam
81% of routers work for Women Development Fund,
19% work for IFAD-funded projects at provincial level

4. Learning route outputs visiting and exchange experience with PRASAC MFI
Good MFI Management: Human Resources and Leadership
Exchange with the PRASAC team directly involved in the delivery of services.

5. Learning route outputs visiting and exchange experience with Hattha Kaksekar
Exchange with the Hattha Kaksekar team directly involved in the delivery of services.
MFI´s good financial management.
MFI accounting: internal and external reporting.
Financial analysis of clients and the portfolio.
Interact in the field with the clients of the loans and savings services

6. Learning route outputs visiting and exchange experience with PADEE
PADEE and CEWs on MIS system and mobile M&E

7. Learning route outputs innovation plan development
Innovation plans development by each group of participants regarding to micro-finance development and modernization in Vietnam and Cambodia.

8. Innovation plan group 1: Innovation plan of Women Business Development Support Fund of Ben Tre Province in the period of
Objectives: Improve the cooperation between microfinance institutions in IFAD system in order to innovate team management through technology-based solutions.
Target groups:
Fund management
The fund’s officials
The fund’s customers
Opportunities:
Access PACED organization, which commit to support for the Fund
IFAD Vietnam organization agree to provide financial support
The fund has facilities used the software system, the fund’s official are familiar with the software system, the Fund has recruited IT staff
Challenges:
Need financial support

9. Innovation plan group 1: Innovation plan of Women Business Development Support Fund of Ben Tre Province in the period of
Activities:
1. Diversify products to attract customers and apply the model all over the province until 2020.
2. Professional officials are trained and guided about technology
3. Financial investment and technological support from IFAD project
Stakeholders:
Management team
The fund’s officials
Customers
Technical support organizations
Committed outcome:
By 2018, prepare documents to apply for establishment of a microfinance institution
Have 20,000 customers managed by Mobile banking model.
Capacity need to improve
Improve microfinance institution management ability for Board of directors and Board of managers
Train officials about technology
Access and mobilize financial resources to expand operating areas
Need evaluation of national microfinance institution to have better development orientation for the fund.

10. Innovation plan group 2: Create proactiveness in developing Business Plan to improve business performance
Objectives: Create proactiveness in developing Business Plan to improve business performance
Target groups:
Help implement annual business plans and strategic plans of the fund to achieve targets.
The fund’s officials and staff proactively implement specialized duties and easily complete them.
Target groups can access products and services of the fund and other support programs.
Opportunities:
Currently, AMD Project support in term of facilities, capacity development training, communication,
Support from Local government and associations
Challenges:
Staff lack knowledge of microfinance, implementation and organization skills
Serve competition
Capital structure, support policies
Financial service products

11. Innovation plan group 2: Create proactiveness in developing Business Plan to improve business performance
Activities:
Main office set annual targets for transaction offices in Sep-Oct every year.
7 transaction offices base on the targets and current situation of each local to develop business plans.
Implement business plans.
Stakeholders:
Women’s Association at all levels
Women Development Fund ( Main office and transaction offices )
Local government
AMD Project
Committed outcome:
7/7 transaction offices can develop business plans and adjust strategic plans for the offices.
100% official can understand and implement activities of the fund.
Capacity need to improve
Plan development ability
Microfinance knowledge for the fund’s officials.

12. group 3: GIA Lai Objective Innovation plan
Support the poor and ethnic minorities
Short-term objectives:
The fund can independently operate when the project end
Challenges
Solutions
Develop professional management system
Officials lack real experiences
Train the fund’s officials
Attract more capital
High lending interest rate, hard to access preferential capital
Borrow from central associations and other partners
Assure the number of lending customers
The fund lacks staff to support customers
Associations at all level participate
Offer suitable products for the poor and ethnic minorities
Interest rate of the fund is higher than that of Vietnam Bank for Social Policies
People can not save money monthly
Communicate to people so they can understand the benefits of the fund
Improve management and operation quality of the fund
Lack of customer tracking and financial management system
Quickly develop customer tracking and financial management software system
Innovation plan
group 3: GIA Lai

13. Innovation plan group 3: GIA Lai
Input
Progress
Outcome
About 50% trained officials can teach the next training group
Business plans for the fund can be implemented well
Disburse all the capital borrowed from the central association for new groups
The manual is approved by the Court
The number of poor and ethnic minority households can access loans is above 50%
Customer Tracking, Management and Reporting are implemented through the software
Open 4 training courses for the fund’s officials and the association’s staff
2 business trip to learn real experiences at other funds
Borrow 5 billion of central association.
Develop Fund Operation Manual
Develop many products for customers
Develop financial management and customer tracking software system
Training about communication, evaluation, teaching skills
Learn form Ben Tre and Tra Vinh
2 billion in 2016 and 3 billion in 2017
Complete the manual by 2016
Do survey and develop 6 small loan products to suit the poor and ethnic minority customers
Complete the software system by 2016

14. Innovation plan group 4: tuyen quang
OBJECTIVES:
Develop a professional official team to meet the demand of the fund
Help women, especially poor women, access loans
Proactively find financial resources to expand operation of the fund
Develop sustainable customer network
BACKGROUND:
Loan demand of rural customers is high: 30 thousand members. Small loan to develop business and production is suitable for the fund’s budget and payment ability of customers.
Currently, financial institutions lack suitable products for this type of customer (less competitive)
Support from the local government (organizing, capital..) and IFAD ( Financial support to help the fund operate in the first year )
BENEFITCARIES:
Rural customers of the fund ( poor women, ethnic minorities )
Households
Opportunities:
Support from the local
TKW Group Network managed by the Women’s Association operates well
The fund’s approach is suitable for the rural ( directly disburse)
Sponsored by IFAD
Challenges:
Small operating capital
Management officials lack experiences of microfinance
Support program of IFAD is going to finish in Tuyen Quang while the fund is going to operate

15. Innovation plan group 4: tuyen quang
OUTPUTS:
HR: By 2020, there will be 6 staff in main office and 21 staff in 7 branches
Capital: 21 billion of lending capital for 219 groups
Members of TKW group: members in 219 groups can mobilize capital for the fund. Estimated saving capital in the fund is about 5 billion
STAKEHOLDERS:
Women’s Association at all levels
Women Development Fund ( Main office and transaction offices )
Co-operative with loan demand
State bank, Projects, Programs
ACTIVITIES:
Train the fund’s officials ( coaching, learning experiences form successful funds)
Work with organizations, projects, local government, Women’s Association… to mobilize capital for the fund.
Develop communication plan for all members to introduce about lending program of the fund. Use Women’s Association network to manage members and co-organize programs
OUTCOME:
1. Access community:
Total member: 4.400
Average loan/person/total income: 15%
2. Performance of officials:
Total officials: 621
Loan/ official: 3.6 billion
3. Financial independence:
Capital from Saving/ Total capital: 16.7%
4. Profitability and sustainability:
Independence Ability to use loan: 139% (people use loan from the fund compared to before accessing)

16. LR evaluation performance changes
LR is recommended by 100% participants
Lessons learned are about approaches and strategies for rural development for the poor and sustainable business. Business experiences from other locals are replicated and shared, then they are completed and applied in the business.
Create a working environment for many people who have the same task/ job, information is shared for each other. The program helped me understand better about microfinance activities, opportunities and challenges that individuals and the fund may face as well as solutions to tackle these problems
Provide good experiences/ innovations, which help the Women Development Fund plan to become a microfinance institution
Orientation of upgrading Women Development Fund at Tra Vinh to Microfinance institution