Nghe An, Vietnam
Self-reliance through pineapples
The tropical climate of the Vietnamese province of Nghe An has prompted many farmers in the region to grow pineapples. Together with VietED we looked at how we could offer 120 pineapple farmers access to financial products that are more suitable than traditional loans.
VietED for pineapples!
Vietnam is a country where there is still much to be done in the area of development cooperation. VietED is an organization that extends microfinancing. It was founded in 2011 by experts in microfinancing and social development with the aim of supporting small enterprises and low-income households. In addition to extending loans, VietED also organizes training schemes for farmers to teach them how to enhance production and secure a better position in the production chain. Rabobank Foundation worked together with the foundation to see how the pineapple farmers could best be helped.
Tailored loan product
Rabobank Foundation and VietED came to the conclusion that there was a mismatch between the financial products on offer and the needs of the farmers. Traditionally a microfinancing loan is based on monthly or weekly repayments with a loan term of up to one year. Because the pineapple growth cycle is eighteen months, there is an urgent need for product adjustment. Rabobank Foundation and VietED have jointly developed a loan product to meet the needs of these pineapple farmers. As a result, the farmers are able to manage their cash flow and take investment decisions more successfully.