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Rural Enterprise Finance Project

Market and Trade Sector Icon
December 12, 2000
October 7, 2008
USD 80,000,000

Project Information

The project aimed to reduce poverty and promote private sector investments in rural and agro-based industries by providing a credit line for financing microenterprises, which was expected to directly impact the livelihoods of farm families, and finance small rural agro-based enterprises to accelerate economic growth and contribute to rural employment, productivity and prosperity. To ensure its effectiveness the project supported the strengthening of VBARD by financing the construction of a training institute, developing an IT system, promoting policy reforms, establishing clear policies and guidelines on rural enterprise financing, establishing a credit guarantee fund, and setting up rural business association in selected districts.

The project's expected outputs included the following:

  • Increase in the income of beneficiary households by at least 50 percent;
  • Finance about 30,000 rural enterprises, 70 percent of which are ongoing concerns and 30 percent newly started businesses;
  • Application and use by 1,200 VBARD credit officers of the principles of enterprise credit appraisal (training provided under Bank TA for strengthening corporate governance) in daily credit operations;
  • Promotion of the evolution of household as business units into enterprises thereby ensuring professionalism, proper accounting, and market oriented approach to business; and
  • Assumption of a larger responsibility by the private sector for the growth in agricultural and agro-based sector development.

The project targeted households, rural enterprises, 1,200 VBARD credit officers and the private sector.

Project Locations

An Giang, Binh Dinh, Bac Giang, Binh Duong, Bac Kan, Bac Lieu, Bac Ninh, Binh Phuoc, Ben Tre, Binh Thuan, Ba Ria-Vung Tau, Cao Bang, Ca Mau, Can Tho, Da Nang, Dien Bien, Dac Lac, Dong Nai, Dak Nong, Dong Thap, Gia Lai, Ha Tay, Ho Chi Minh, Hai Duong, Ha Giang, Ha Nam, Ha Noi, Hoa Binh, Hai Phong, Ha Tinh, Hau Giang, Hung Yen, Kien Giang, Khanh Hoa, Kon Tum, Long An, Lam Dong, Lao Cai, Lai Chau, Lang Son, Nghe An, Ninh Binh, Nam Dinh, Ninh Thuan, Phu Tho, Phu Yen, Quang Binh, Quang Ngai, Quang Nam, Quang Ninh, Quang Tri, Son La, Soc Trang, Thai Binh, Tien Giang, Thanh Hoa, Tay Ninh, Tuyen Quang, Thua Thien-Hue, Tra Vinh, Thai Nguyen, Vinh Phuc, Vinh Long, Yen Bai

Project Sectors

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