Thanh Hoa Women’s Business Association

Background

Thanh Hoa Province is in the north central region of Vietnam. In 2007 the population was over 3 million. It has about 3,000 small and medium-sized enterprises and there are about 20 civil society associations in the province, unusually high compared to the rest of the country. Where most women’s civil society business groups tend to come under the Women’s Union, Thanh Hoa has something different: a separate Women’s Business Association.

The idea originated when a local director of a hospitality company and women entrepreneurs sought a single “roof” under which they could exchange experience in business. They also sought a forum where they cold exchange market ideas and support one another. With the support of other associations and agencies, and the initiative of the core group, the Association was founded in September, 2005, at a general meeting. This became the Thanh Hoa Women’s Business Association.

At first, it was difficult. Membership was low and those who did come had to travel far. And funding was scarce. However, with the strong support of the Vietnam Chamber of Commerce and Industry (VCCI) and the Women’s Union, the Association began to gain momentum. They immediately began raising awareness to establish the reputation and image of the association, collaborating with different agencies, organizing management trainings and other key events. Members have since organized several study tours and forums and on marketing, raising capital and management.

It is now a totally stand-alone association. Members have worked hard to attract more businesses and the question of how to bring benefits to members is always the focus of the discussions. They recently added 40 new members to their rolls and are presently at 100.

Member services

The Association has developed four ‘clubs’ at the local level. Together they address managerial skills building and knowledge, market research, business law, enterprise law and investment law. A delegation also went recently to the APEC meeting on women business leaders. This included a trade fair, for which the delegation brought three displays. This offered a rare chance for local businesswomen to learn and to market their project to the world. Association members have also participated in a high profile delegation to Laos, the US, Japan, France, Germany and Austria.

Other issues addressed by Thanh Hoa Women’s Business Association:

• Attracting capital investment.
• Women and economic integration.
• Exchanging experience in business and supporting each other.

As a result of the Association’s work, members are more self-confident, experienced and knowledgeable, and their businesses attract more clients. Their success has caught the attention of the local government, which has since added women to their ranks on the People’s Committee.

Harnessing the power of BAs to reduce poverty

To support poor women, the Thanh Hoa Women’s Business Association has facilitated micro-credit services from the Agriculture and Rural Development Bank, the Social Policy Bank, the National Employment Fund, and international donor projects. The group has disbursed VND 997,247,000,000 worth of loans to 248,436 women to invest in household businesses and stabilize their family lives. And as good corporate citizens, the Association also contributes to charity, raising their profile and setting a good example.

Turning points

The lasting achievement of the Thanh Hoa Women’s Business Association has been to create a healthy business environment where enterprises can cooperate and support each other in looking for markets, tightening organization, developing business channels and streamlining production. What the Association does will promote its image and reputation to attract new members and create more opportunities for women entrepreneurs.

Lessons learned

• Thanh Hoa Women’s Business Association has defined certain specific targets based on the nature of member businesses. These relate to capital sources, business administration capacity and experience, customer relations and market information. But there are still gaps in administration, planning and finances. The office is also small and limited in its capacity and members must still find time away from family. In some cases, businesses lack business information but the Association itself cannot provide what they need.

• Most of the member businesses start with little or no experience so they lack basic knowledge and skills in business administration. The mutual support among the members helps them catch up. They become more self-confident, knowledgeable and experienced in doing business.

• Education and capacity of the Association’s members differ from one area to the next so the group should be specific to the locality. This also creates a chance and an enabling environment for woman entrepreneurs to speak up.

• The support of other related organizations to the Association is important. For instance, the Provincial Women’s Union should have measures to support enterprises, put the activities of the Association in its mission, contribute to development and organize trade promotion for the Association’s members.