The Vietnam Challenge Fund (VCF) officially got underway in Hanoi on November 10 with a total capital of US$3 million, which is seen as a new tool for creative business projects for Vietnamese poor people.
CF is a main component of the project “Making Markets Work Better for the Poor Phase 2” (M4P2), funded by the Vietnamese Ministry of Planning and Investment (MPI), the UK’s Department for International Development (DFID) and the Asian Development Bank (ADB) for two years from 2009-2011.
Despite making great strides in the fight against poverty like bringing two million people out of poverty, Vietnam has a high number of poor households. It is important for the country to pay more attention to the poor, particularly in the global economic slow down. |
“The challenge fund originated from the UK and then was set up in many countries in the world by the DFID. It was proved as an effective tool for poverty reduction, said Fiona Lappin, DFID head representative. “In Vietnam, VCF will help to mitigate economic risks to increase income for the poor.”
The VCF will provide financial support of up to 49 percent of the total cost of new business ideas ranging from US$30,000 to US$250,000.
“This explained why the fund firstly appeared in a country, not a region,” said Deputy Minister of Planning and Investment Nguyen The Phuong. In an effort to deal with bad impacts by the world economic crisis, the MPI will join hands with the ADB and DFID to boost effectiveness of the fund in the development of private economic sector and poverty fight.
“The fund is expected to help Vietnamese poor people to get access to the market easier”, said Ayumi Konishi, ADB Country Manager.
The fund will firstly focus on the areas of agriculture and agriculture processing. VCF aims to raise the poor’s participation in retail food sales, high-valued agricultural products and new business initiatives.
Q.C
Vietnamese
