The Vietnam Project

Business Start-up Program

November/December 2009

The start of a new career

Cocunut husk fiber

Coir spinning machines

We bought 101 coir spinning machines and gave them to people in two towns. Why 101? We had pre-ordered 100 machines, planning to give them to 50 people in each town. After distributing the first 50, one woman remained, asking why she wasn’t on the list we received from the Peoples Committee. Miss Phung, mid 50’s, blind in one eye, cares for her two aging parents. She lived about a block away, so we went to her house to check out her circumstances. We ordered a machine for her immediately, and also repaired her roof for $97.

As usual, we gave each recipient 100 kilograms of coir – shredded coconut husk fiber – to get them started. We got two price estimates for the coir which we thought were high, so we went to the factory and ordered it directly

Our total cost: $5,867, about $58 to give a family a way to earn income immediately. These machines are very popular and we plan to order another 100 for the next trip if we have adequate funding

Cows

We bought one cow for a husband and wife in their mid 40’s, both chronically ill. They cannot work regularly but are able to collect grass for the cow. Their two kids, 19 and 26, work in a factory in Saigon and send money home to help.

Our cost: $295.

January/February 2009

Coir spinning machine factory

Coir spinning machines

The coir spinning machines have been our biggest success in giving people a way to earn money. The cost of the raw material – coconut husk fiber – was down this time so our cost of getting a family started with a machine and 100 kilos of coir was only $52.47. We provide additional support to the local economy by having the machines built at a local woodshop that employs several people.

Rope ready to sell

We distributed machines to 100 people. The local TV showed up and did a news story of us giving machines to 50 people in Hung Khanh Trung.

If we have adequate funding, we plan to order 100 more machines on the next trip as we have had many requests for them.

Cows

We gave cows to three families, one in Thanh Binh and two in Thanh Ngai, all of them poor and happy to have a cow. Our cost was $344 per cow, slightly less than last September.

August/September 2008

Proud owners of a new spinning machine

Coir spinning machines

These machines have proved extremely popular with our recipients. Because we provide 100 kilos of raw material – coconut husk fiber – with each machine, people can begin earning money immediately.

We pre-ordered 60 machines and all 60 were there when we arrived. We distributed 2 in Nhuan Phu Tan, 7 in Hung Khanh Trung, 13 in Thanh An and 38 in Phuoc My Trung and have many requests for our next trip.

The cost for the coconut husk fiber was a little high when we arrived so we waited for about a month until it went down. Our cost per family including machine and raw material was $57.33, slightly lower than in January as we got a better price on the raw material.

Cows

We gave cows to 5 families, 4 in Phuoc My Trung and 1 in Thanh Ngai.

We originally went to see the Hoang family in Thanh Ngai about building a house for them, but their house looked like it would be okay for a few more years.

The dad, 41 years old, is disabled, having lost one leg in the war with Cambodia. The mom and 18 year old daughter do occasional field work or whatever is available. The 13\ year old son is in middle school. Because this family has very low income, we wanted to help them. They were very happy to receive a cow.

Each cow cost us $362. Although this is up $69 per cow from our last trip, the higher price is good news for the many people we have given cows to in the past when they have offspring to sell.

Noodle soup shop UPDATE

In January we got Nguyen Van E and Nguyen Thi Be started in a noodle soup shop business. This business has been very successful and their standard of living has improved.

December 2007/January 2008

Coir spinning machines

This is our third time around giving coconut husk fiber spinning machines to poor families. It is a very popular program because our recipients can begin earning money immediately. It also allows us to help people who do not live on a road that has enough foot/bicycle/motorbike traffic to support a small business.

Spinning machines being delivered by boat

A new business begins

The 2008 model has been rolled out. Our first venture, summer 2006, we had machines built of all metal. In the spring of 2007, because of the rapid increase in the price of metal, we ordered part metal/part wood machines. These did not prove as sturdy as we would like. We have now found a new shop to make them in another town and we have them delivered by boat. The new model is all wood, very sturdy, smooth spinning and getting good reviews from the users. And, as a bonus, they cost us less than the older ones.

We had 35 built and distributed 6 in Tan Phu Tay and 29 in Phuoc My Trung, along with the usual 100 kilos of raw material to each family to get them started. Our cost per family: $61.00.

Noodle soup shop

New noodle soup shop

We were introduced to Nguyen Van E and Nguyen The Be, both in their 50’s, by Miss Hong, our bookseller and scout. They live in a compassion house, similar to the ones we build, which was built by funds solicited in Saigon by a monk at the local pagoda. Their 28 year old son has cancer. They formerly were getting by on their own but had to sell all of their assets for medical care for their son. They are experienced at running a noodle shop but had no money to get one started.

The local dentist offered them space fronting the main street of Phuoc My Trung and we bought them two display cases, two large pots, plastic tables and chairs, bowls, spoons, chopsticks, table accessories and condiments, and gave them money to buy meat, noodles and veggies for their first day of business. They were open at 4:00am the next day and the business was an immediate success. They average about $5.00 profit a day. Our total cost to set them up in business was $243.00

Cows

We gave cows to 10 families, one in Vinh Hoa and three each in Tan Phu Tay, Phu Son and Phuoc My Trung. Our average cost per cow was $293, down from $344 last spring.

March/April 2007

Women arrive to pick up their coir spinning machines.

The project we started last summer, providing coir (coconut husk fiber) spinning machines to poor women has been a resounding success. All but one of the women are using the machines and earning money. One decided against it and her machine was given to another woman.

And, the word has spread. While we were distributing rice in the town of Hoa Loc, a Women’s Union representative asked if we would give machines to women in her hamlet, Hoa Thuan 1. We immediately agreed and ordered 20 machines. Because the price of metal has increased rapidly, we had the frames for these machines made part metal and part wood. As last time, we gave each woman 100 kilograms of start up material. Our total cost per person was about $80.

We also bought cows for nine families. After increasing rapidly with the bird flu scare, the price per cow is now down to $344.

July/August 2006

Our business start-up program has been particularly successful this trip.

A new beginning

Coconut trees are ubiquitous in Ben Tre province, and all parts of the trees and fruit are used in some way. The fibrous husk is spun into rope and used to make floor mats and other products. We had a local metal smith custom make 22 spinning machines with electric motors, and gave them to 22 families. We also gave each family 100 kilograms of coconut husk fiber to get them started. Our cost to set up a family with a way to earn money: about $70. See the letter dated August 25^th, 2006 in the Dispatches section for more details about this project. We plan to expand this program on our next trip.

Picking up the coconut husk fiber

We also bought cows for five families at a cost of $400 per cow – a little less than we paid last time. The price is down because there is some hoof and mouth disease in the country now so demand has been reduced.

January/February 2006

We purchased cows for twelve families – four in Phuoc My Trung, four in Thanh An, three in Tan Phu Tay and one in Nhuan Phu Tan – all recommended by the Peoples Committee in each town. Our average cost per cow was $424.

The Thanh family

We were also able to help the Thanh family start a bicycle/motorbike repair business. They were introduced to us by one of the teachers at the high school who also acts as a social worker. He noticed that one of the grade 11 girls, Thuy, was in very difficult circumstances and went to investigate.

Thuy’s parents, Thanh and Ut, are 52 and 49. There are five kids age 6 to 15, all in school. The home is small, dirt floor, two beds, with 1000 square meters of land on which they grow some fruits and vegetables. Their income is from spinning coconut fiber into twine which they then sell. They have five foot-pedal powered machines and can earn about sixty five cents per week per machine. They make a little extra money by selling fruit and vegetables at the front of their house. Their situation was pretty grim – not enough money for school fees, barely enough to eat.

Loading the compressor

The good news is that their house is on a main road and Mr. Thanh is an experienced bicycle/motorbike mechanic.

Much of the income of a small repair shop in rural areas comes from fixing flat tires and washing motorbikes. We bought him a used compressor, water pump and pressure regulator. They were delivered free of charge by a truck driver as an act of charity. We also built a cement platform at the front of his house as a work area and had a sign made. Our best guess is that he will have an income of about $2.00 per day from this business.

Thanh's oldest daughter spinning coconut twine

We also bought the family one electric spinning machine for the coconut husk fiber for about $31.00. With the electric machine they can produce as much twine in a day as they can in a week on the foot powered machines. Our total cost to help this family produce more income for themselves was $531.

July/August 2005

Board member Raphiel Benjamin crossing a monkey bridge to visit the home of a cow recipient

This continues to be a challenging area for us. In rural Mekong Delta the enterprise of choice is raising cows. The price of a cow went up to about $450, but our cow buyer was able to find cows for $382, about the same as we paid early this year. He did, however, have to travel further to find good cows at a price we wanted to pay. The good news is that people for whom we have previously bought cows can sell the offspring at an excellent profit. We continue to look for alternative income producing ventures.

Phuoc My Trung

Purchased cows for four families recommended by the Peoples Committee.

Thanh An

Purchased cows for three families recommended by the Peoples Committee.

January/February 2005

Board member Phuong selects a cow

This has become the most challenging part of our work. Our goal is to help poor families start income producing enterprises. Because most of our work is in rural areas, raising animals is usually the enterprise of choice and for the last couple of trips cows have been the animal of choice. The price of a cow has risen dramatically in the last year. In 1993 we were paying under $200 for a cow. In 1994 this was up to about $230 and the cost of a cow now in the Mekong Delta is about $390. This means we can’t help as many families and we continue to look for, and occasionally find, other income producing enterprises suitable to our recipients. On a brighter note, we have solidified a relationship with a new volunteer associate in Hue, Mr. Cu, and with his assistance have purchased and donated a cow at a cost of $203. We have asked him to recommend other recipients to us.

Le Thi Doi gets a cow!

Phuoc My Trung

Purchased cows for three families recommended by the Peoples Committee.

Thanh An

Purchase cows for three families recommended by the Peoples Committee.

Thuy Bang (Hue)

We purchased a cow for Ms. Le Thi Doi, at the recommendation of Mr. Cu. She is 60 years old and lives alone in a rural area outside Hue. She makes a minimal living, usually but not always enough to buy rice, by going into the forest and gleaning wood splinters with sap which woodcutters leave. She then sells these at market as firestarter. She was delighted to receive a cow, and her neighbors built a shelter for the cow and have offered their land for grazing.

June/July 2004

We have assisted 10 families in starting income producing enterprises. As we are working in a rural area, the choice is pretty much limited to raising livestock unless the family lives in town or on a road that has a fair amount of traffic. We offered them the choice of cows or pigs and all 10 families chose cows. Because of the bird flu epidemic at the beginning of the year, beef has become more expensive, and the cows now cost more and are harder to find. The last one was purchased just before we left in July.

Each cow cost $3,600,000 VND, about $230.00. This includes about $3.00 for our cow buyer (Phuong's brother) and $3.00 for transportation to our recipients' homes.

Phuoc My Trung

Eight families, seven recommended by the Peoples Committee and one recommended by Miss Hong, our book supplier. The one recommended by Miss Hong is the one I mentioned with the 14 year old developmentally disabled daughter. As a side benefit, it turns out the the girl has developed a great affection for the cow and spends hours with it every day.

Thanh An

Two families recommended by the Peoples Committee.