And the winner is…

Written by Vu Quynh Lien - Micro Finance Unit Operations Officer

The day was a special one for Mr Hoang Trong Hau. Leaving his busy farming business behind, the 38-year-old farmer took an early bus from his hometown in Phu Cu district in Hung Yen to travel to Hanoi for his award.

Mr Hau had been selected as one of the 30 outstanding performers in 2013 at this year’s Citi Micro Entrepreneur Awards. The annual event honours excellent small-business owners and is organised by Vietnam Microfinance Working Group in cooperation with the State Bank of Vietnam and Citibank’s Citi Foundation.

Mr Hau spent two hours on the bus to get to the capital, but the journey to his award began seven years ago when he started his business initiative with few funds.

“People say they can’t set up businesses if they have less than VND2 million [95 US dollars] to invest, but I think everything starts small before it can grow bigger,” said Mr Hau at the awards ceremony.

“I had almost nothing, but such a small amount of money was enough for me to create a good foundation for my business,” added the business owner who was born with a curved spine.

Before 2006, Mr Hau worked as an electrician and his wife sold fruit at the local market. Their total monthly income of less than 100 US dollars was not enough for them and their two children and because of his disability, Mr Hau sometimes fell while working or carrying fruit to the market, which increased the cost of his medical treatment.

However, he never gave up despite his difficulties and he always thought about small businesses that he could do to improve the family’s finances.

Then Mr Hau learnt of a breed of chickens called Dong Tao, which had not been raised in the locality before. It was an opportunity and perhaps the start of a promising new venture, he thought at the time, but with no security for a bank loan, his most challenging obstacle was capital.

“At first, both my family and neighbours were dubious about my ability to raise chickens successfully,” Mr Hau recalled. “Nobody believed a disabled person like me could do it without money or experience.”

Mr Hau got his Citi Micro Entrepreneur Awards.

Despite their doubts, Mr Hau continued to investigate the idea and found out about World Vision’s Micro Finance Unit (MFU), which allowed him to take out a small loan with no assets as security. Borrowers such as Mr Hau are also given technical support so that they can confidently start their own businesses.

Mr Hau took out his first loan of VND2 million (95 US dollars) in October 2006 that, together with some limited savings and his relatives’ financial support, he used to launch his business.

After studying effective methods of raising the birds and customer demands, Mr Hau bought 50 chickens to breed and the feed they needed. 

Six months later, his chickens had grown well and he didn’t mind the difficult trip he had to make to sell his chickens at competitive prices.

“The first time, I broke even and that showed the other villagers that I’d made a good choice,” Mr Hau said. “My chickens were healthy and the meat tasted good, but I sold them at lower prices than other ones. My customers liked that and I received several orders for the next brood,” he continued.

Since the first one, Mr Hau has taken out a further seven MFU loans, borrowing a total of VND60 million (2,850 US dollars). Besides investing in hens, he has bought an egg incubator and a biogas system to generate ‘green’ energy from the birds’ droppings and installed a pumping system to clean his coop regularly.

More importantly, Mr Hau has developed the habit and ability to save since receiving support from the MFU.

“For one loan, I borrowed VND5 million [240 US dollars] and over the next 12 months, I paid back the interest and a part of principal every month. Since I’ve used the MFU, I’ve been more aware of my responsibilities and more focused on my business,” he said.

By 2012, Mr Hau had a total of 300 hens, which produced some 8,000 chicks a month and an annual profit of VND200 million (9,500 US dollars). This success ensured his business became well known not only in his community, but also in other places such as Hanoi, Hai Phong, Hai Duong and Quang Ninh.

The entrepreneur didn’t keep his business practices a secret, though. He shared his experience openly with local villagers, providing them with technical knowledge and sales advice. “If I can help someone else, I feel my work is more worthwhile and that makes me happy,” he said.

When demand for Dong Tao chickens fell in 2012, Mr Hau started raising a Thai breed of ducks on net covered floors, which allowed him to continue growing his business. None of his birds have been infected with any major diseases despite many other areas in the country experiencing avian flu.

“My success is not down to small or large funds. It just needed patience, creativity and self-belief,” he said at the awards ceremony.

The MFU provides micro-credit to more than 11,000 people, of whom 90 percent are women, and operates in ten districts of the provinces of Hung Yen, Thanh Hoa, Quang Tri, Quang Nam and Danang. It is also expanding its services to help other low-income families gain access to credit.