A group leader overcomes hardship and escapes poverty with support from TYM loans

Thanks to the opportunity to access TYM’s financial services, Ms. Pham Thi Phuong received her first loan of VND 2 million in 2009 to start her business. By using the loan effectively, her family were able to overcome poverty and hardship, build a spacious home, and achieved a stable and comfortable life.

The story of Ms. Pham Thi Phuong, a resident of Hamlet 4, Lam Thanh Commune, Nghe An Province, formerly Chau Nhan Commune of Hung Nguyen District, is widely known as an inspiring example of a Catholic group leader who overcame poverty through TYM’s support. Born and raised in a farming family, she experienced a difficult and challenging childhood. In 2006, Ms. Phuong married Mr. Pham Minh Nho. At that time, neither of them had stable employment, they did not own a house, and had to live in a temporary shelter. After the birth of their first child, her husband became ill, making their already difficult circumstances even harder.

According to Ms. Phuong, meeting TYM was a turning point that helped her family achieve the life they have today. She recalled that in early 2009, she first gained access to TYM’s financial services through what she described as a fortunate opportunity. During her first loan cycle, she was only able to borrow a small amount ranging from VND 1 million to VND 2 million, with repayment required according to the agreed schedule. With the VND 2 million loan from TYM, despite having no profession and no prior business experience, Ms. Phuong started small-scale trading. In the early days, she went to riverside markets and local markets to buy shrimp and fish from fishermen, then resold them at small markets or supplied them to restaurants for profit. Over time, she gradually became familiar with the business and expanded into selling a wider range of products.

As the first member of Center 68 to join TYM, Ms. Phuong became well known for her role as a group leader. She actively participated in women’s activities in her community as well as parish activities. Hardworking and diligent, she not only worked tirelessly but also knew how to use TYM loans effectively to improve her household’s economic conditions. Borrowing from TYM brought many benefits. TYM staff closely supported clients and provided dedicated guidance. In addition to making weekly loan repayments, clients could also save according to their own financial capacity. By the end of the loan cycle, clients could both complete repayment and receive their accumulated savings, which could then be used as additional capital for business or family needs. Recognizing the important role of TYM, Ms. Phuong actively encouraged other women in her community to join and access TYM loans. Initially, only a few women participated, but the number gradually increased. Today, Center 68 has 55 clients.

Since then, Ms. Phuong has remained closely engaged with TYM activities. Beyond borrowing, she has helped strengthen solidarity and mutual support among group members, encouraging them to actively improve their livelihoods. Year after year, after repaying one loan she would apply for another, with her loan amount gradually increasing. She now accesses loans of up to VND 50 million. She mainly uses these loans to expand her trading business, purchasing and selling a variety of products such as chickens, ducks, and ragworms, allowing her to scale up operations and increase her income. Combined with weekly savings contributions, she gradually built financial security. As a result, in 2012, after the government introduced a resettlement policy for households living in flood-prone areas, her family was able to build a spacious two-story house equipped with modern household necessities. From that point on, her family officially escaped poverty.

Looking back on the difficult years, Ms. Phuong remains deeply grateful to TYM for giving her the opportunity and motivation to improve her life. Through TYM’s loan products, client benefits, and the dedicated support of staff at TYM – Hung Nguyen Branch, she gained the confidence to expand her business, secure a stable income, support the education of her three children, and build the comfortable and happy life her family enjoys today.

Ms. Nguyen Thi Minh Diu, Deputy Director of TYM – Hung Nguyen Branch, shared:
“To date, TYM has supported many families facing hardship to improve their livelihoods. Ms. Pham Thi Phuong is a typical example. Although her initial loan amount was small, knowing how to use the capital effectively made a significant difference. In addition to successfully developing her household economy and escaping poverty, Ms. Phuong is also highly dedicated and responsible in her role as Group Leader of Center 68, and TYM highly appreciates her contributions.”

As of October 31, TYM – Hung Nguyen Branch had disbursed VND 169.107 billion out of the planned VND 197.834 billion, achieving 89 percent of the annual target. Outstanding loan portfolio reached more than VND 115.351 billion out of the planned VND 131.338 billion, achieving 97 percent. The repayment rate remained at 100 percent. Outstanding savings balance reached more than VND 198.036 billion out of the planned VND 213.581 billion, achieving 99 percent.

In addition, throughout the year, TYM regularly organized community activities in coordination with the Women’s Union at various levels. These activities included the healthy dance competition “Healthy and Beautiful Rhythm”, women’s volleyball tournaments celebrating International Women’s Day on March 8 and Vietnamese Women’s Day on October 20, gift support for 45 member families facing hardship on July 27, support for the construction of three subsidized houses worth VND 180 million, and support for schools and healthcare facilities in six rural development units totaling VND 90 million.

TYM has also carried out many meaningful and humanitarian initiatives, including support for 10 foster children with funding of VND 38 million per year for at least three years, free health checkups for 873 clients worth VND 523.8 million, 50 scholarships worth VND 25 million for disadvantaged children, and relief support for families affected by floods.

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