Research On Potential Value Chain Of Agriculture For Clients Of Chi-Em Microfinance Program In Dienbien Province Which Belongs To Entrepreneurs Du Monde (EDM)

Started in 2007, Chi Em program operated in many areas in Muongphang District and Dienbien District in Dienbien Province. However, one of the problems that it had to face was borrowers ineffectively was using the loans which was due to the mis-oriented use of capital and high risk in production. This increased the financial weight on the poor borrowers and the risk of capital loss of the fund.

Therefore, MACDI was invited to conduct a research and survey to assess potential value chain of agriculture in order to change the Fund’s operational ways. The research was the basis for the Fund to identify the purpose of borrowing to reduce the credit risks for borrowers and for the Fund itself.

MACDI experts designed and conducted the research based on 5 criteria: (i) Improve the livelihood for the poor and assure gender equality; (ii) Potential market; (iii) Suitable to local resources; (iv) Sustainable environmental development and (v) Possibility to develop production.

After 2 months, MACDI’s experts offered the potential value chains of agriculture which were suitable to business capacity of the poor in the areas of two districts based on the results of the research. Besides, the experts also gave some recommendations to Chi Em Program Managers about methods to effectively support the borrowers to develop economy in order to keep safe to the capital.