This is the first significant sum a Vietnamese microfinance institution has taken from a foreign microfinance institution. Until recently, all microfinance activities in Vietnam were financed by the government or non-refundable aid.

Speaking at the signing ceremony, Ho Thi Quy, Director of TYM, said that the loan would help TYM increase the number of poor women escaping poverty. It will open three more branches to provide credit services for its members.

According to Coordinator of the Asia programme for Cordaid Jan Postmus, it is the first loan Cordaid has provided a microfinance institution in Vietnam. Cordaid has provided about US$40 million to more than 100 microfinance institutions all over the world.

TYM was established in 1992 to provide financial services, including savings, credit and micro insurance for poor women. TYM has so far accepted more than 22,000 members in 86 communes from seven northern provinces.