CONTENTS
OVERVIEW5. Vision, Mission and Core Values
6. Milestones
8. Message from President and CEO,
VisionFund International
10. Message from Board Chairman
12. Message from CEO
14. Board of Directors Profile
18. Senior Management Team Profile
21. Key Figures
24. Tax Paid Report
26. An Institution of International Excellence
28. Client Success Story
30. Our Products
34. Branch Network and Oprerating Areas
SOCIAL IMPACT40. Social Performance Highlights
48. Struggle and love are the keys to success in
business
50 Corporate Events Highlights
54. Environmental and Employment data at a glance
56. VisionFund continues to offer scholarships
to children in Cambodia
FINANCIAL REPORT60. Balance Sheet
61. Income Statement
62. Statement of Changes in Equity
63. Statement of Cash Flows
64. Report of the Independent Auditors
OUR PARTNERS & VISIONFUND INTERNATIONALOPERATING AREAS
66. Our Partners
68. VisionFund International Network
AS A LEADING SOCIAL MICROFINANCE INSTITUTION (MFI) IN CAMBODIA, VISIONFUND CAMBODIA IS PART OF THE VISIONFUND NETWORK, ONE OF THE LARGEST CHRISTIAN MICROFINANCE NETWORKS IN THE WORLD
Our work empowers our clients to grow successful
businesses which enable children to grow up with improved
health and education. Working in partnership with World
Vision, we are committed to long-term change which can
unlock potential for future generations.
We believe in brighter futures for children where
they can experience the love of Christ, building lives
free of need and full of promise.
We empower families to create income and jobs:
Our financial services enable impoverished households to
increase their incomes. We train clients to grow successful
businesses using their income to support their children and
families.
We unlock economic potential for communities
to thrive: Working together as part of World Vision – a
Christian relief, development, and advocacy organisation
– we enable communities to increase economic activity,
access clean water, education and healthcare, benefit from
improvements to nutrition, and provide the foundations for
local economies to flourish.
OVERVIEWVISIONOur vision for every child, life in all its fullness; our
prayer for every heart, the will to make it so.
MISSIONWe believe in brighter futures for children
Empowering families to create incomes and jobs
Unlocking economic potential for communities to
thrive.
CORE VALUESWe are Christian
We are committed to the poor
We value people
We are stewards
We are partners
We are responsive
VisionFund - Financial Empowerment from
World Vision
4 5VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
2005-2008
2003
2000
2004
1990s
20092013
20172015
2010
2011
2016
HISTORY AT A GLANCE
2014
2012
Was named as a Micro Enterprise
Development (MED), a credit
program of World Vision.
Became a registered
company called
VisionFund Cambodia
by National Bank of
Cambodia.
Licensed in March by the
National Bank of Cambodia as
VisionFund Co., Ltd.
• Received Gold Award
for Social Performance
Reporting from MIX.
• Received a “Silver Award”
on social performance
reporting from CGAP
supported by Michael & Susan
Dell Foundation and Ford
Foundation.
• Received 4- Rating out of the
highest score 5+ in the social
performance rating conducted
by Planet Rating.
• Earned a top transparency
award from the
WorldBank’s CGAP.
• Obtain a financial rating
of alpha minus (oe-) by
the Microfinace Rating
International Limited.
• Reaffirmed our social
performance rating by
Planet Rating 4-.
• Achieve Platinum
Award from MIX for its
transparency and social
mission.
• Granted MDI
Microfinance Deposit
Taking license from
NBC.
• Received Outstanding
Achievement in Social
Performance and
Award for Outreach
and Inclusion from
Oikocredit.
• Granted the Pricing
Transparency Award
from MF Transparency
• Granted S.T.A.R. Award
for Socially Transparent
and Responsible from
MIX.
• Rated BBB+ Rating by
Microtinanza Rating.
• Received top Five
Diamond Rating by MIX.
• Received a Five
Diamond Rating from
MIX for information
disclosure and best-
in-class practices and
commitment.
• Rated A+ with a stable
outlook by Planet
Rating.
• Launched Health and
Life Insurance “Double
Safety” to our deposit
customers for free of
charge.
• Granted the Best Social
Performance Award
in Asia Region at VFI
Global Leadership
Conference in Bangkok,
Thailand.
• Held official Grand Opening of
VisionFund’s New Head Office.
• Launched Embedded Insurance and
Personal Accident Account to all
loan clients.
• Awarded Client Protection
Certification from Smart Campaign
for meeting strong standards of
client care.
• Impacted more than 360,000 Children.
• Granted the Gold in the Certification of Tax Compliance
awards from General Department of Taxation of the
Kingdom of Cambodia.
• Received a highly rated assessment using Risk Management
Graduation Model tool initiated by Risk Management
Initiative in Microfinance.
• Conducted Assessment of Social Performance practices
using the SPI-4 with a 94% compliancy rate on USSPM list of
indicators.
• Became a founding member of NBC FAST Project.
Was started as an activity
of World Vision Cambodia’s
Area Development Program
(ADP).
6 7VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
to transform their livelihoods and ensure that their
children were nourished and able to attend school.
During 2017, in line with our strategic goals you had
a positive impact on the lives of 360,000 children in
Cambodia.
Our global results are a testament of the commitment
of all our staff to serving our clients. This unwavering
focus on mission is spurring innovation and efficiency.
As I conclude, let me take this opportunity to thank our
more than 8,000 staff and the boards of our various
entities for their dedication and good stewardship.
In the year ahead, let us all renew our urgency and
commitment to serving those who need our services
the most.
Sincerely
After more than two decades working with financial
service providers, businesses and development
agencies, I am excited to be part of a leading global
microfinance network that is making a difference in
the lives of millions. Economic empowerment is a vital
key in unlocking potential in the global economy and
assisting vulnerable families. VisionFund is helping our
clients in more than 30 countries prosper.
The clients we target and serve are those most in
need of our services. They are often women, living in
rural areas, smallholder farmers and almost always of
meagre resources. When I travel and meet with our
clients one thing is always evident – our clients are
hopeful and dream of a better life for their families
and children.
VisionFund is at the forefront of using innovation,
including technology and disaster recovery
programmes, to build capacity in the most difficult to
reach rural environments. It is a privilege to be part of
deepening World Vision‘s impact through VisionFund.
As the microfinance arm of World Vision, we believe
in brighter futures for vulnerable children. In 2017
we had a positive impact on more than 4.43 million
children across the globe. We have enabled their
parents and those who care for them to improve their
livelihood through our small loans, access to savings
and providing insurance.
At the end of 2017, the value of our loans exceeded
US$836 million, a 15% growth on the previous year.
These loans helped almost 1.24 million clients to
build up their businesses and increase their farm and
off-farm incomes. In 2017 we continued to prioritise
serving smallholder rural farmers. During the year 37%
of our client base were smallholder farmers working
in agriculture; 65% of these smallholder farmers were
in rural communities; and 72% of them were female
clients.
These global results would not have been possible
without the work of VisionFund Cambodia. Through
your work you helped more than 223,000 clients
message fromPresident and Ceo, Visionfund international
Michael MithikaPresident and CEOVisionFund International
8 9VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
As many Microfinance Institutions (MFI) in Cambodia
have increasingly targeted middle class and urban
clients, representing an opportunity for higher returns,
VisionFund Cambodia has worked hard in 2017 to stay
focused on our mission of being a truly privileged MFI.
VisionFund’s commitment to serving rural communities
across Cambodia brings with it costs and risks generally
not encountered by urban-focused MFI’s, creating a
challenging operating environment. Consequently, 2017
saw a rise in non-performing loans and a decline in client
numbers. However, these challenges also bring out the
best of the VisionFund Cambodia team, from innovations
related to tablet applications and mobile banking, to
working with new partners and agent networks to meet
those challenges and extend more services to clients.
However new challenges also bring new opportunities
and we were delighted to welcome Michael Spingler, with
his vast experience, to lead VisionFund Cambodia as Chief
Executive Officer in 2017. Together Michael and the
VisionFund Cambodia team have worked hard to ensure
Cambodia continues to be VisionFund International’s
flagship, with the loans and financial services offered
positively impacting 360,000 children. VisionFund’s loan
portfolio increased further to US$170 million and we
continued to serve clients from 117 branches across
every province in Cambodia. As of December 2017,
VisionFund Cambodia has nearly 145,000 borrowers
and 78,500 depositors, with 81% of those clients living
in rural communities.
I am grateful for the commitment and passion of our staff
who continue to work tirelessly to create brighter futures
for the children of Cambodia. With the leadership of our
message from Jason eVansBoard CHairman
new CEO, I am confident that VisionFund Cambodia
will continue to meet the challenges of this competitive
microfinance market by diligently managing the business
and continuing to focus on sustainable growth that
transforms lives.
The VisionFund team remain committed to achieving
our vision of life in all its fullness for the children of
Cambodia.
mr. Jason James eVansBoard Chairman, VisionFund Cambodia
National Director World Vision International-Cambodia
VISIONFUND, SERVING CAMBODIAN
COMMUNITIES
10 11VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
The year 2017 was one of the most challenging years
in VisionFund Cambodia’s history due to changes
in the operating environment and the continued
influence of agriculture price trend decreases and
climate change effects. As a Christian organisation,
our response echoed our Christian values as we
continued to focus on enriching our clients’ well-
being during this challenging period. Through the
commitment of the management team and wider
staff who work with passion to serve those in need,
we were blessed to end the financial year with good
results.
• Continued to serve our client base (made up of
81% rural and 91% women clients) with evolving
technology tools and partner base in order to bring
a cheaper, more efficient and effective product and
experience.
• Provided opportunities for real impact on our clients
and families lives through provision of income
generating and social products that positively
impacted 360,000 children. An excellent example
of this is the over 19,000 Water and Sanitation
products lent in collaboration with World Vision
and Water.org.
• Ensured processes reflect the highest standards
of client care and, in doing so, completed external
assessments by SPI4 Social Audit and Risk
Management Graduation Model scoring ratings
which exceed industry best practice.
• Demonstrated the highest operational standards
by showing transparent and respectful following
of the laws and regulations of the country. In
doing so, VisionFund received a certificate of Tax
Compliance from the General Department of
Taxation of the Kingdom of Cambodia.
• Reinforced staff development and safety as a
top priority of the organisation by engaging in
continuous capacity building (over 500 courses
message fromCeo
MR. MICHAEL JOHN SPINGLER
Chief Executive OfficerVisionFund Cambodia
provided), development of safety and security
materials and briefings, providing over 1,400 staff
helmets and other materials for staff protection when
travelling to, during and from work.
Last but not least, we thank our Lord, Jesus, who has always
guided us toward better results and achievements in this
ministry. We pray our clients, staff and all stakeholders are
successful in both their work and life!
HIGHLIGHTS
12 13VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
MR. JASON JAMES EVANS
BOARD CHAIRMAN, VISIONFUND CAMBODIA NATIONAL DIRECTOR OF WORLD VISION INTERNATIONAL-CAMBODIA
Mr. Jason Evans, a dual UK and Swiss citizen, has been
a global leader in the development field for 25 years, 16
of which with World Vision. He has lived and worked
across NGOs, cultures and continents in 11 countries
in Africa, Europe and now Asia. He is National Director
for World Vision International-Cambodia. Jason is known
for building thriving youth-focused country programmes,
strong in the areas of development and advocacy work,
with the aim to see nations shaped and changed.
Jason has significant MFI experience and has sat on boards
of VFI MFIs in Georgia (Chair from 2003 – 2006), Albania
(2006 – 2010) and Kosovo (2010 – 2012).
MR. MICHAEL JOHN SPINGLER
CHIEF EXECUTIVE OFFICERVISIONFUND CAMBODIA
Mr. Michael Spingler is a microfinance specialist with over
24 years of development experience providing strategic advice,
technical assistance and capacity strengthening services to INGOs,
NGOs, MFIs, banks, and credit unions in Cambodia, East Timor,
Egypt, Ghana, India, Indonesia, Myanmar, Mongolia, Nigeria, the
Philippines, Sri Lanka, Thailand and Vietnam. His advice, technical,
and training assistance focused on governance, strategic, business
and operational planning, operations, human resources, marketing,
financial management, product development and service delivery.
He has worked with TPC, a large Cambodian MFI, CRS and
Chemonics in senior management, regional and chief of party roles
on technical assistance and capacity building projects. Michael is
currently or has served on the Board of six other VisionFund
International MFIs in Southeast Asia.
MR. CHAP VIBOL
BOARD MEMBER, OPERATION DIRECTOR OF WORLD VISION INTERNATIONAL-CAMBODIA
Mr. Chap Vibol graduated with a Masters Degree in
Development Management from the Asian School of
Development and Cross Cultural Studies (ASDECS), he
also has a certificate IV on humanitarian assistance from
Melbourne University and attended the Humanitarian
Leadership Programme at Deakin University, Australia.
Vibol has 27 years of broad experiences in development
and about 17 years with World Vision International-
Cambodia. In his last five years as Operations Director,
Vibol has provided leadership, support and coordination
to all operations to ensure efficient and effective
programme implementation in order to meet the WVI-C
goals and objectives outlined in the National Strategy and
to ensure the integration of all projects and programmes
with communities and local partners.
MR. CHEONG CHIN KUAN
BOARD MEMBER
Mr. Cheong Chin Kuan, based in Malaysia, has more than
three decades of extensive commercial and consumer banking
experiences gained through his tenure with two leading
commercial banks. In his banking career, he rose to the rank of
Country Head, Consumer Banking for a leading foreign bank
in Malaysia.
He was also instrumental in pioneering and building the
community banking (SME) business model for the bank. Since
his retirement in 2013, he was re-engaged by a foreign bank as
their business advisor for East Malaysia.
Board of direCtors
14 15VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
MS. FIONA WHYTE
BOARD MEMBER
Ms. Fiona Whyte, a New Zealand citizen, volunteered
through the “Bankers with Vision” programme for
VisionFund Cambodia. She has 24 years of banking
experience in New Zealand, including 12 years in Foreign
Exchange Risk Management. Fiona studied International
Business and Management at Massey University in 2007.
She currently works at the Financial Markets Authority
in New Zealand.
Board of direCtor
MR.LIOW YEE KAI
BOARD MEMBER
As a regional counsel, Yee Kai’s work covers over 18 countries in Asia
and Oceania. He is a qualified Lawyer with over 16 years of experience
doing corporate and commercial legal work in Hong Kong, Singapore,
New Zealand and Southeast Asia.
Starting out as a Solicitor in New Zealand, Yee Kai went on to become
the Regional Legal Counsel and Compliance & Risk Management
Director for a wide range of companies including Motorole,
Schneider Electric and Singapore Technologies. He has also served as
an independent director on a number of companies, including listed
companies in the Hong Kong, Singapore and the US.
Yee Kai grew up in Singapore and graduated from Nanyang Technological
University with a Master in Business Administration in Business Law.
Prior to that, he obtained his Bachelor of Law from the University
of Victoria in Wellington, New Zealand. He has been admitted as a
Barrister and Solicitor of the High Court of New Zealand, and was
also a member of the Singapore In-house Counsel Association and a
member of Hong Kong In-house Counsel Association. He is fluent in
English and Mandarin, and conversant in Cantonese.
MR. CHRIS BRYAN
BOARD MEMBER
Mr. Chris Bryan, a New Zealand citizen, has a Lincoln University
degree and an agribusiness background. He has experience in rural
finance, farm management, corporate and market development,
exporting and business planning. His work included senior
management roles in the stock and station, meat and deer
industries, export marketing and investment businesses. As a
member of the New Zealand Prime Minister’s Advisory Group,
for nearly three years, he advised two Prime Ministers on matters
related to the primary sector.
Chris is a professional director and sits on the board of several
companies and community and charitable organizations in New
Zealand and off shore; he is committed to best practice governance.
16 17VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
MR. WESLEY JORDAN
CHIEF FINANCIAL OFFICER VISIONFUND CAMBODIA
Wesley Jordan joins VisionFund with over 16 years of
extensive financial and operational management experience
in banking services, project management, innovation,
and economic development. He previously served with
VisionFund in Africa. Before joining VisionFund Cambodia
he was the Finance Director of Pact Global Microfinance
Fund in Myanmar. He also held executive positions with
banks and microfinance institutions in Congo, Mozambique
and Serbia.
He is originally from the United States, where he earned
a Bachelor of Arts from the University of North Carolina
and a Master’s Degree in International Affairs at Columbia
University. Wesley is a Certified Public Accountant, licensed
in Washington State. As well as his native English he also
speaks French and Russian.
MS. TOP SOK SAMPHEA
CHIEF OPERATING OFFICER VISIONFUND CAMBODIA
Ms. Top Sok Samphea joined VisionFund
Cambodia in 2002 as the director for finance and
adminstration. She became Chief Operating Officer
in 2008. Prior to joining VisionFund, Samphea
served as a senior auditor at Ernst & Young and
PricewaterhouseCoopers. She is currently on the
Board of the Cambodia Micro-finance Association.
Born in Phnom Penh, Samphea has more than
a decade of experience in finance, accounting,
management, business planning and strategies,
auditing, administration and communications.
She earned her Bachelor’s Degree and Master’s
Degree in Business Administration from the
National University of Management, Cambodia.
She also hold a diploma of Accounting and
Administration from Noisy Le Grand College,
France.
MR. PREAP PISETH
DIRECTOR OF OPERATIONS VISIONFUND CAMBODIA
Born in Kandal province, Piseth has more than a
decade’s experiences in development, customer
services, sponsorship management, leadership
and management, and public communication
and administration. His career with VisionFund
Cambodia began in 2008. He previously served
for World Vision International-Cambodia and
the Secretariat for Public Functions of the Royal
Government of Cambodia.
Mr. Piseth obtained Executive MBA from
FTMSGlobal Academic, Singapore, accredited
by Angila Ruskn University, UK and Master’s
Degree in Business Administration from Norton
University, Cambodia. He also holds a Bachelor
Degree of Economics in Enterprise Management
and an Associate Degree in Professional Law from
the Royal University of Law and Economic (RULE),
Cambodia.
MR. VA LUONG SORIN
DIRECTOR OF IT VISIONFUND CAMBODIA
Currently serving as Director of IT for VisionFund
Cambodia, Sorin possesses progressive and extensive
experiences in IT information system management,
detailed analysis and designing of IT systems architectures,
enterprise system integration and project management.
Prior to joining VisionFund Cambodia, Sorin served as
Head of Business Support Systems and Architecture
Development with Sotelco Ltd (Beeline), an International
Telecom. He has also worked as senior IT Consultant
and as Senior Program Analyst internationally with
Management Information System Division of Satellite,
Telecom and ISP Company, Thaicom Ltd in Bangkok,
Thailand.
Sorin has a Master’s Degree in IT (MScIT) with an
International University of KMUTNB in Bangkok, Thailand.
senior management team
18 19VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
MR. CHHAY PANHA
DIRECTOR OF PEOPLE AND CULTURE VISIONFUND CAMBODIA
Panha has been in his current position since January
2016. He began his career with VisionFund Cambodia
in late 2004 as a Credit Officer and also served as a
Branch Manager.
Panha is from Kampong Thom Province, and has a
Master of Business Administration from Norton
University in 2009.
He has attended various local and international training
programs related to human resource management,
business, and leadership including programs in Bangkok,
Italy, London, Singapore, Tanzania and Tokyo.
senior management team KeY figures
December 2017 December 2016
Number of Active Borrowers 144,881 238,990
% of Women Borrowers 91% 93%
% of Rural Borrowers 81% 88%
% of Agricultural Borrowers 60% 64%
Number of Regional Offices 20 20
Number of Districts covered 189 154
Total Staff 1,389 1,489
Loan Portfolio $170,122,486 $143,688,789
Average Portfolio per Borrower $1,174 $601
Average Portfolio per Client Service Officer $254,674 $219,372
Portfolio at Risk > 30 days 1.73% 1.57%
Savings Value $45,127,590 $36,076,836
Number of Savers 78,451 71,083
Total Assets $196,023,893 $166,609,027
Total Equity $34,320,106 $31,240,445
Return on Equity (ROE) 9.39% 11.72%
Return on Assets (ROA) 1.70% 2.21%
LOANS METHODOLOGIES BY PORTFOLIO SIZE
LOANS METHODOLOGIES BY CLIENT NUMBER
Individual Lending 48.1%
Group Lending 15.30%
Group Lending51.9%
Individual Lending84.70%
20 21VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
ACTIVE BORROWERS DECEMBER 2013 - DECEMBER 2017
NUMBER OF SAVERS DECEMBER 2013 - DECEMBER 2017
SAVINGS VALUE DECEMBER 2013 - DECEMBER 2017 (US$ IN MILLIONS)
TOTAL ASSETS DECEMBER 2013 - DECEMBER 2017 (US$ IN MILLIONS)
GROWTH TREND
LOAN PORTFOLIO DECEMBER 2013 - DECEMBER 2017 (US$ IN MILLIONS)
2013 2014 2015 2016 20170
50
100
150
200
61.6
90.9
126.3
143.7
170.1
2013 2015 2016 20172014
191,974
228,948
270,341
238,990
144,881
2013 2014 2015 2016 2017
60
40
20
80
02,806
29,818
51,893
71,08378,451
2015 2016 201720142013
40302010
50
04.8
14.7
23.5
36.1
45.1
0 2013 2014 2015 2016 2017
200
150
100
5073.1
105.9
145.7
166.7
196.0
22 23VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
In the interest of fiscal transparency, we are pleased to publish our consolidated tax paid report in the table below:
* Total and Accumulated Amount from year 2003.
* Total and Accumulated Amount from year 2003.
Patent tax
Signboard tax
NBC fee per branch
Transportation tax
Value added tax
Prepayment of profit tax
Annual profit tax
Tax on salary
Withholding tax on deposits
Withholding tax on saving
Withholding tax on rental
Withholding tax on local services
Withholding tax on overseas services
Withholding tax on overseas borrowing
Total paid
Accumulated amount* (year to date)
$4,560
$8,145
$0
$3,903
$693
$162,161
$487,012
$194,130
$11,413
$57
$58,387
$30,680
$150,900
$483,742
$1,595,783
$6,296,012
$4,988
$11,427
$290,798
$3,899
$0
$215,899
$544,511
$295,756
$36,460
$820
$79,708
$64,307
$151,468
$636,931
$2,336,972
$8,632,985
$7,210
$16,446
$285,188
$4,179
$0
$306,781
$807,394
$427,216
$71,671
$3,519
$100,295
$216,860
$243,835
$979,668
$3,470,262
$12,103,247
$18,500
$47,391
$324,033
$4,041
$691
$404,178
$739,049
$640,287
$117,103
$7,280
$158,997
$219,099
$231,987
$1,195,994
$4,108,630
$16,211,877
$18,500
$70,042
$319,774
$3,670
$2,777
$390,145
$1,113,913
$464,237
$149,201
$8,360
$183,169
$124,042
$181,208
$1,100,021
$4,129,060
$20,340,937
taX Paid rePort
2013 2014 2015 2016 2017Units in US$
24 25VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
SMART CAMPAIGN CLIENT PROTECTION CERTIFICATION
Issue Date:
Issued to:
VisionFund Cambodia
Isabelle BarrèsSmart Campaign Director M-CRIL Chief Executive Officer
#20, St. 71, Sangkat Tonle Bassac,Khan Chamkarmon, Phnom Penh,
Cambodia P.O. Box 479
May 2016
UNLESS EARLIER REVOKED BY THE SMART CAMPAIGN OR BY MATERIAL CHANGES THAT AFFECT CERTIFICATION STATUS, THIS CERTIFICATE IS VALID FOR FOUR (4) YEARS WITH A RENEWAL REQUIRES TWO YEARS FROM THE DATE OF ISSUANCE.
TO REPORT COMPLAINTS REGARDING THE HOLDER OF THIS CERTIFICATE OR MISUSE OF THE SMART CAMPAIGN NAME OR LOGO, PLEASE CONTACT THE SMART CAMPAIGN CERTIFIER AT [email protected] OR THE SMART CAMPAIGN AT www.smartcampaign.org.
Award e d M ay 2016
Client Protection Certi�ed
For a complete list of entities that are currently certi�ed against the standards for implementing the Client Protection Principles, see the Smart Campaign Certi�ed Entities Directory at www.smartcampaign.org. The standards can also be found on the website.
Alok Misra
This Certifies that VisionFund Cambodia has been evaluated according to the standards of the Client Protection Certification Program and found to take adequate care to implement Client Protection Principles as promoted by the Smart Campaign.
an institution of international eXCellenCe
• MIX S.T.A.R. Award 2013: (Socially Transparent
and Responsible) recognition for completing
MIX’s social performance desk review process and
successfully meeting all 2013 S.T.A.R. requirements.
• Best Social Performance Award 2015: VisionFund
Cambodia was granted the Best Social Performance
in Asia Region at the Global Leadership Conference
in Bangkok, Thailand in March 2015.
• The Smart Campaign, a global initiative to
incorporate strong client-protection practices
within the microfinance industry has publicly
recognised VisionFund Cambodia as Client
Protection Certified for meeting strong standards
of client care in 2016.
• Granted the Gold Award by the General
Department of Taxation of the Kingdom of
Cambodia for best practice in tax compliance.
VISIONFUND HAS CONTINUOUSLY GAINED RECOGNITION AS ONE OF VFI’S TOP PERFORMING MICROFINANCE INSTITUTIONS WITHIN THE WORLD VISION PARTNERSHIP. VFI HAS A GLOBAL NETWORK OF MICROFINANCE INSTITUTION IN MORE THAN 30 COUNTRIES.
AWARDS & RECOGNITION
Since 2013, VisionFund Cambodia has been granted a
number of awards from both local and international
rating agencies and independent institutions:
• VisionFund Cambodia received the Outstanding
Achievement in Social Performance and the Award
for Outreach and Inclusion for reaching out to
disadvantaged clients from Oikocredit, a leading
global investor based in the Netherlands with a
regional office in Southeast Asia.
26 27VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
Ms. Bit Bo, 55 years old, is a farmer and a single
mother of four sons and five daughters. The family lives
in Ampil Koang Village, Nam Tao Commune, Phnom
Srok District, Banteay Meanchey Province. One of her
sons was sponsored by World Vision International-
Cambodia which allowed him to receive an education.
With only a small income from her farm, Bo feed her
children from the vegetables surrounding her house;
rarely did they have enough nutritious food. The lack
of income meant that Bo’s eldest daughter and two
sons had to drop out of school and work as labourers
to help support the family. Year after year, the family’s
living conditions didn’t get any better which meant
that Bo had to send her other two sons to also work
as labourers at the Thai-border. Bo was determined
that her younger children would have an education
and more choices than their older brothers and sister.
She decided to look at how she could improve her
rice growing business.
She took out her first loan of 1,000,000 Cambodian Riel
(US$250) from VisionFund in 2010. She used it to buy
rice seed and pay for her children’s schooling. From that
business, she could generate 200 Thai Bhat (US$6.50) and
save 80 THB (US$2.55) daily. At the end of the cycle, she
was able to purchase some household supplies including a
bed and some kitchen utensils. Her second loan of 10,000
THB (US$230) was used to buy fertiliser, her third loan
of 40,000 THB (US$1,268) she used to purchase cassava
plants, and her fourth loan of 1,000,000 Riel for purchasing
additional fertilisers. With the anticipated success of her
farming and rice field business, she applied for her fifth
loan of 40,000 THB (US$ 1,268) to buy a hand tractor.
Client’s suCCessstorY
The success of her businesses motivated her to
apply for her sixth loan of 20,000 THB (US$460).
As a result of her hard work and the loans from
VisionFund, Bo’s family is living in a decent house
containing all the necessary household supplies.
They have a bicycle, a motorcycle, a hand tractor
and more importantly Bo’s four youngest children
are going to school.
Bo said “In my life I regret that I was not able
to be educated and that I had to ask my dearest
five children to quit school. Owing to this, I really
want to thank VisionFund for fulfilling my dream in
supporting my four youngest children to receive an
education. And If I am able to get another loan, I
want to use it for buying another hand tractor and
running another business for my sons”.
My dreams have been fulfilled with the support of
VisionFund, says Bo
28 29VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
5. EXPRESS LOAN
Express Loan (EXL) is a loan for emergencies and unexpected events either natural disaster or personal dangers.
6. SOCIAL COOPERATIVE LOAN
Social Cooperative Loan (SCL) is a type of social loan product for agricultural cooperative or similar agriculture associations especially for those who are under support of WVC to support working capital needs.
7. HOUSING LOAN
Housing Loan (HSL) is a loan product offered to rural families who need funds to purchase/construct a new house or to improve or expand an existing house.
I. LOANS
1. SMALL BUSINESS LOAN
Small Business Loan (SBL) is any loan used for working capital, business assets acquisition and other businesses inputs or for IGAs (Income Generating Activities) that earn income on a daily, weekly, fortnightly or monthly basis, e.g. trading, production, services, … etc.
2. AGRICULTURE LOAN
Agriculture Loan (AL) is any loan used for inputs, expenditures, or assets of agricultural businesses or income generating activities that earn only seasonal income such as crop growing, animal raising, etc.
3. NON-BUSINESS LOAN
Non-Business Loan (NBL) is a loan used for purchasing personal or household assets such as water filters, latrines, solar energy products, bike, motorbike … etc. in order to improve the basic living conditions and impact child well-being.
4. EDUCATION LOAN
Education Loan (EDL) is a social product provided as financial support to parents or guardians who want their children to pursue further education or to learn technical skills.
Loan Size:
80,000 - 40,000,000 KHR
351 - 25,000 USD
800 - 400,000 THB
Loan Term: 3 - 48 Months
Loan Size:
80,000 - 40,000,000 KHR
351 - 25,000 USD
800 - 400,000 THB
Loan Term: 3 - 48 months
Loan Size:
80,000 - 20,000,000 KHR
351 - 5,000 USD
800 - 200,000 THB
Loan Term: 3 – 30 months
our ProduCts
Loan Size: 100 - 3,000 USD
Loan Term:
Associate Degree: 3 – 48 months
Bachelor Degree: 3 - 84 months
Master Degree: 3 – 48 months
Vocational Trainings: 3 – 24 months
Loan Size:
80,000 – 1,400,000 KHR
20 – 350 USD
800 – 14,000 THB
Loan Term: 3 – 6 months
Loan Size: 3,000 – 25,000 USD
Loan Term: 6 – 36 months
Loan Size:
1,400,001- 40,000,000 KHR
351 - 10,000 USD
14,001- 400,000 THB
Loan Term: 6-60 months
Agriculture
Small BusinessLoan 15.6%
Non Business
Non Business
Education Loan
Housing Loan
Housing Loan
Loan 61.4%
3.8%
12.2%
Loan 19.0%
0.2%
CLIENT
Loan 24.8%Loan 13.7%
0.2%
PORTFOLIO
Agriculture Loan 49.0%
Small Business
Education
30 31VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
II. SAVINGS
1. SOCIAL INVESTOR TERM DEPOSIT(SITD)
Social Investor Term Deposit (SITD) is an interest-bearing and
contract-based savings account that after requires account balance
to be placed for a specific period of time, usually until maturity date.
2. HOPE SAVING ACCOUNT (HSA)
Hope Saving Account (HSA) is a saving product designed for
entrepreneurs, workers or housewives who want to have a safe and
reliable place to save their money.
Currency KHR, USD & THB
Minimum Deposit KHR 100,000 / USD 25 / THB 1,000
Term 3 months to 36 months
Annual Interest Rate 3.25% up to 10%
Currency KHR, USD & THB
Minimum Deposit KHR 4,000 / USD 1 / THB 40
Term Unlimited
Annual Interest Rate 3.00%
3. BEST CHILD ACCOUNT (BCA)
Best Child Account (BCA) is a saving product designed to meet
the needs of the parent or relatives who wish to save for their children
below 18 years.
Currency KHR & USD
Minimum Deposit KHR 4,000 / USD 1
Term Until children reach 18 years old
Annual Interest Rate
9.60% (KHR) and 7.25% (USD)
1. INTER-BRANCH MONEY TRANSFER
Money Transfer service allows a customer in one location to transfer
or receive money in the same or a different location based on their
intended purpose.
2. INTER-BANK MONEY TRANSFER
Inter-Bank Money Transfer is a type of money transfer service that
is transacted between a financial institution (Bank and MDI) in order to
provide a convenient and real time service to their customers with the
purpose of sending money to a beneficiary account.
III. LOCAL MONEY TRANSFER
Hope Saving Account 73%
SITD 24%
Best ChildAccount 3%
ACCOUNT
HOPE
Hope Saving Account 13%
SITD85%
Best ChildAccount 2%
SAVINGBALANCE
HOPE
Type of Transaction
Cash to Cash or Account to Cash
Cash to Account or Account to Account
Currency KHR USD THB KHR USD THB
Rate 0.10% 0.10% 0.10% 0.08% 0.08% 0.08%
Min.Charge 4,000 1 40 3,000 1 40
Transfer Amount (KHR) Fee Charged (KHR)
<= 4 million 4,000
>4 million to 20 million 8,000
>20 million to 40 million 12,000
32 33VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
VIETNAMCAMBODIA
THAILAND
LAOS
MYANMA
COVERAGE AREA
REGIONAL BRANCH OFFICE
BRANCH OFFICE
BranCH netWorK and oPerating areas
CURRENTLY, VISIONFUND CAMBODIA
HAS 20 PROVINCIAL AND 119
DISTRICT BRANCHES COVERING IN
25 PROVINCES 192 DISTRICTS, 1,534
COMMUNES AND 8,788 VILLAGES.
Currently, VisionFund Cambodia has 117 districts branches covering
25 provinces, 189 districts, 1,364 communes and 6,582 villages.
34 35VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
HAPPINESS IN THE FAMILYThe hygienic practices prevalent in any society are closely linked with the values placed by the members of that society on cleanliness. The prevalent value systems to a large extent influence the degree to which people keep themselves and their surroundings clean. The majority of the writing on sanitation and hygiene practices in Cambodian society have been widely disseminated to provide a clean environment and healthy living conditions for the people.
VisionFund participates in promoting the water sanitation and hygiene requirements for people through social products such as water filters, toilets, wells, water pumps, solar panels … etc. VisionFund provide WASH (Water Sanitation & Hygiene) Loans to all customers for better healthcare and sanitation for their families.
36 37VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
Being a Christian MFI, our staff have been inspired
to work hard to contribute to achieve our social
mission and reach more poor households in rural
areas who are in need of financial services for their
livelihood and income generation activities. 2017
was a wonderful year as we started to scale up our
WASH implementation to all Branch Offices across
the country. We also rolled out Mobile Banking
successfully for our staff. As we want to provide
better service to our clients, our staff will always
think “Clients First”. In late 2017, we started rolling
our payment via agent including Wing, eMoney
and Smart Luy. True Money will be available by
early 2018. This new technology initiative enables
flexibility and choice to our clients for their loan
payments and to receive their loans.
Based on our core value, We Value People,
VisionFund strongly focus on poor households
living in rural areas. In 2017, VisionFund reached
81% clients living in rural areas and our loans
contributed to improve the lives of 360,000
children through accessing improved water
sources and sanitation. This year, our WASH loan
served 19,373 poor households in the community
benefitting 571, 652 people.
To prevent our clients from over-indebtedness
caused by unexpected issues, VisionFund provided
voluntary health and personal accident insurance
purchasing to all our clients and their family
members in partnership with French insurance
company, PKMI. Voluntary insurance cover for
health and personal accidents means that clients
and their family members do not lose financial
resources due to unexpected accidents or health
problems. In 2017, 76,329 clients including children
and family members were covered by insurance,
there were 750 cases benefitting from this
insurance with access to a total of $40,215.
SOCIAL IMPACT
38 39VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
soCial PerformanCe HigHligHts
• Reached 81% of borrowers living in poor rural areas.
• Strongly driven by gender and women’s
empowerment, 91% female borrowers.
• More than 360,000 children positively impacted by
VisionFund financial services to their parents.
• Average loan size of the grouped loan at US$346
(18% below Cambodia GDP/capita at US$1,228 –
Source: https://knoema.com/atlas/Cambodia/GDP-
per-capita), meaning that VisionFund Cambodia has
maintained a strong focus on poverty.
• More diversified social / CWB (Child Well Being)
products, such as WASH loans, LPG cookstove loans,
solar energy loans, debt relieving loans, education
loans, child’s savings, micro health & personal accidents
insurance, etc. to serve more poor households in
rural areas.
• A groundbreaking loan with an imbedded health and
personal accidents insurance product successfully
piloted and rolled out across the branches.
• A debt relieving loan product widely expanded and rolled
out to give over-indebted clients the hope associated
with the opportunity to work their way out of debt.
• Our WASH programme fully scalable with a dedicated
WASH team working closely with partners, constructors
and all other stakeholders in the communities to ensure
our clients get access to proper WASH facilities.
• CPPs (Client Protection Principles) certification award
received from the SMART Campaign for demonstrating
and complying with a strong, genuine commitment and
best practices to protecting and caring for clients.
• CWB survey found >99% of surveyed clients reported
benefits for their children because of the loan they
had received. The top three CWB Outcome Benefits
reported are:
soCial PerformanCe rePort taBle
desCriPtion deCemBer 2017 Portfolio
numBer (#) % (us$) %
Products & Services
A. Loan product
Clients for Agriculture Loan 87,061 60% 80,205,199 47%
Clients for Small Business Loan 23,166 16% 43,702,615 26%
Clients for Non-Business / Social Loans (i.e. WASHloans, green loans, education loans, and other non-business loans)
34,654 24% 46,214,672 27%
B. Savings Product
Savers for Hope Savings 57,055 73% 5,871,639 13%
Savers for Social Investor Term Deposit (SITD) 1,471 2% 38,302,572 85%
Savers for Best Child Savings 19,925 25% 953,379 2%
C. Non-Financial Products/Services
Clients insured by Safety Net of the Poor (SNP) program / micro-life insurance
161,892 99.42% N/A N/A
Clients insured by PKMI / micro-health and personal ac-cidents insurance
44,339 30.60% N/A N/A
New/incoming clients received financial education 144,881 100% N/A N/A
Best Clients selected annually 122 0.05% N/A N/A
1. Improved Sanitation (76.16%)
2. Sufficient Drinking Water (72.87%)
3. Children’s Health Cost Covered (70.08%)
40 41VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
Geography Outreach
Districts 189
Provinces / Cities 25
Client & Portfolio Outreach
Borrowers in rural areas 117,032 81% 133,581,234 79%
Women borrowers 131,817 91% 150,496,447 88%
Group borrowers 75,124 52% 26,024,953 15%
Women savers 54,241 69% 18,214,606.27 40%
Poverty Targeting and M&E
Social Performance (SP) reporting
• Key SP indicators and progress consolidated and
reported by VisionFund on a monthly basis to staff and
management for their reference, decision-making and
actions thereafter.
• Key SP indicators and SP progress consolidated and
reported by VFI on a quarterly basis to update VFI
leadership as well as the network MFIs.
Social ratings
Conducted by external party every two/ three years
(depending on the Depending on the decision of senior
managements to rate the social performance .
Social Responsibility to Staff
Staff trained/ refreshed on SPM including CPPs All staff
Staff performance appraisalTied up to social indicators to balance between social and
financial focus as well as to drive SP focus.
Social Responsibility to Clients
Client complaint mechanism All in place, such as client’s suggestion box, hotline #, walk-in
complaints, direct complaints to supervisor/ manager, etc.
Client Protection Principles (CPPs)
Institutionalised and fully complied. CPP assessment
conducted by external parties to measure how VisionFund
has implemented and complied with client protection and
client care.
Social Responsibility to Community and Environment
Key field staff trained on environmental protection Field staff trained on environmental protection to deliver
environmental protection message to clients.
Job employments Local people/ youths highly encouraged and recruited for
jobs with VisionFund.
Portion of net profit spent for creating value for clients
and communities
A certain amount of net profit annually set aside for incurred
cost on social activities/ charities/ donations to create value
for clients and communities.
Clients linked to benefit from non-financial services
delivered by NGOs and other social partners
VisionFund clients are linked to development programme
activities of NGOs and other social partners, such as WVI-C,
Water.org, RLDO, WaterSHED, Made for Life, Rotary Club/
Sustainable Cambodia, NRG, LES, PKMI, KAMWORKS, Pteah
Baitong, SNV ... etc.
desCriPtion deCemBer 2017 Portfolio
numBer (#) % (us$) %desCriPtion
deCemBer 2017 Portfolio
numBer (#) % (us$) %
42 43VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
CWB (CHild Well-Being) and imPaCt VisionFund is quite unique in our focus on children and
communities. We’re driven by our desire to improve the
lives of children living in poverty. To measure impact related
to client households and especially their children, we’ve
captured CWB data to better understand how our services
help children when their household income increases. We
measure the number of children helped and what CWB
benefits they have received from the previous loan and what
is expected to change wtih the new loan.
Based on CWB data, we found that over 99% of 62,042
sampled clients reported some types of CWB benefits for
their children because of the loan they had received. Among
those clients who said the loan helped their households and
especially their children:
soCial PerformanCe indiCatorIn 2017, VisionFund Cambodia invited an assessor from
M-CRILL to assess SPM practices using the SPI-4 module
in order to identify its strengths and areas for improvement
with respect to Universal Standards of SPM including the
Clients Protection Principal. The assessment took place from
December 5, 2017 to December 8, 2017 in two VisionFund
branch offices and at the Head office. The results revealed
that VisionFund Cambodia complied 94% on the Universal
Standards SPM list of indicators. VisionFund Cambodia
received a score of above 90% on five Dimensions (1, 2, 3,
5 & 6) of the Universal Standards SPM, and 86% on one
Dimension (4).
Client ProteCtion and ComPlianCe VisionFund takes client protection seriously, making sure that
we do no harm to clients. We’ve therefore mainstreamed
client protection, care and compliance within our daily
operational activities. We believe in “Keeping Clients First”.
We’re very proud and blessed to receive CPPs / SMART
certification from the SMART Campaign, a global initiative
to incorporate strong client protection practices into the
Credit WitH eduCation
As a socially oriented MFI, VisionFund ensures that clients
are educated on financial literacy, basic entrepreneurial
concepts, basic healthcare, etc. while they are using their
loans to generate their household income. Every new client
receives basic financial education to educate them on how
to maximise income, minimise expenses and the basic
concept of savings for the future. In 2017, we scaled up the
Embedded Education module to focus client understanding
on avoiding over-indebtedness. Feedback from clients told
us that they were satisfied with the education modules and
that their understanding had increased, In partnership with
Sustainable Cambodia (SC), a local NGO engaged in rural
development and based in Pursat province, we received
financial support from the Rotary Club of Canada to provide
business concept training to SC clients to teach them about
basic entrepreneurship know-how and get them ready to
access credit from VisionFund to improve their subsistence
livelihoods.
Our field staff work closely with WVI-C to help clients in
the community to access financial services to support their
livelihood activities and income generation. WVI-C provides
capacity building on technical know-how and when the
community is ready to produce their output, we step in
and provide the finances needed to support the community
through our financial services. Besides providing agriculture
loans to communities in WVI-C ADPs, we also provided
• 76.16% reported improved sanitation
• 72.87% reported sufficient drinking water
• 70.08% reported children’s health cost covered
• 60.33% reported additional clothing/shoes
• 43.54% reported improved basic education
• 40.31% reported sufficient food
• 19.20% reported improved housing
• 5.46% reported youth learning opportunitiesSMART CAMPAIGN
CLIENT PROTECTION CERTIFICATION Issue Date:
Issued to:
VisionFund Cambodia
Isabelle BarrèsSmart Campaign Director M-CRIL Chief Executive Officer
#20, St. 71, Sangkat Tonle Bassac,Khan Chamkarmon, Phnom Penh,
Cambodia P.O. Box 479
May 2016
UNLESS EARLIER REVOKED BY THE SMART CAMPAIGN OR BY MATERIAL CHANGES THAT AFFECT CERTIFICATION STATUS, THIS CERTIFICATE IS VALID FOR FOUR (4) YEARS WITH A RENEWAL REQUIRES TWO YEARS FROM THE DATE OF ISSUANCE.
TO REPORT COMPLAINTS REGARDING THE HOLDER OF THIS CERTIFICATE OR MISUSE OF THE SMART CAMPAIGN NAME OR LOGO, PLEASE CONTACT THE SMART CAMPAIGN CERTIFIER AT [email protected] OR THE SMART CAMPAIGN AT www.smartcampaign.org.
Award e d M ay 2016
Client Protection Certi�ed
For a complete list of entities that are currently certi�ed against the standards for implementing the Client Protection Principles, see the Smart Campaign Certi�ed Entities Directory at www.smartcampaign.org. The standards can also be found on the website.
Alok Misra
This Certifies that VisionFund Cambodia has been evaluated according to the standards of the Client Protection Certification Program and found to take adequate care to implement Client Protection Principles as promoted by the Smart Campaign.
WASH loans to community saving group in ADPs in order
to help them to be free from waterborne diseases, and be
Open Defecation Free through the building of latrines.
In partnership with Water.org, we developed WASH
education ICE material to educate clients and non-clients
to improve health and hygiene awareness and protect them
from water- and sanitation-borne diseases. We also ensured
that the community understood the need to ensure that
they did not become over indebted if they fell ill while they
were still repaying their loan. In our lending methodology,
our staff uses the ICE material to educate clients during
the loan application process. During 2017, 67,437 people
received health and hygiene education from Loan Officers
and 19,375 decided to take a loan from VisionFund to gain
proper access to WASH facilities.
CHild sCHolarsHiP
VisionFund has directly supported children’s education since
2007. From the profits that we reinvest in the communities
where we work, we identify a small number of bright
students and help them until they graduate from their high
schools. In 2017, we supported 65 children by providing
them with the study materials they need at school. We
normally spend US$100 for each child scholarship. This
programme will help these children to achieve their dream
of taking higher education.
WasH and green finanCing ensuring tHe aVailaBilitY of Clean Water, sanitation and enVironmental ProteCtion
CWB AS OF DECEMBER 2017
microfinance industry, for demonstrating and complying
with a strong, genuine commitment and best practices to
protecting and caring for clients. In Cambodia, we’re the
second MFI to receiving the CPPs/SMART certification. We
will apply the new version of CPPs when it is available.
44 45VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
VisionFund is the first MFI in Cambodia providing WASH
loans to our clients; especially, people living in remote
areas in order to help them to gain access to proper
WASH facilities and reduce associated expenses on
medical care. WASH loans were first started in 2011
through collaboration with several specialist NGOs and
social enterprises. Through technical support from Water.
org, in 2017, we diversified our WASH products to fulfil
the demands of our clients and inspire behaviour changes
in communities via aggressive sale and demand triggering
activities. As of December 2017, we provided WASH loans
to 142,828 rural households with our $11 million portfolio.
These loans positively impacted 571,652 people including
children and disabled people. Access to proper WASH
facilities meant that households spent less on healthcare
and they were able to save money for their children’s
education. We saw this progressive improvement through
improved clients repayment rates and the CWB report.
To further contribute to environmental protection and
health benefits for our clients in rural communities where
electricity is not available, we also provided loans for LPG
cook stoves and solar energy products to enable them to
save money on access to electricity and to contribute to
the global environment issue. In 2017 we reached 1,444
households by providing $575,000 on solar energy loans
and 14,258 households by providing $634,518 on LPG
cook stoves loans.
ValuaBle oPPortunities for CommunitY YoutH VisionFund offers community youth with opportunities
to be a volunteer, intern, employee or have access to an
education loan to pursue their higher education to help
them to realise their dreams. Last year, we launched the
Loan Officer Recruitment & Orientation programme
(LORO), to recruit community youth for potential
employment with VisionFund. If selected, they’re placed
on a three-month training progamme before becoming a
full-staff member. As a result of the LORO programme we
have employed over 237 community youth.
Our Education Loan (EDL) helps young people to
complete high school, attend a four-year Bachelor’s
degree programme, or a Master’s degree programme.
EDL amount is up to $3,000 and is payable in monthly
instalments for up to seven years. It aims to help
households whose children can’t pursue education or
higher education due to their financial constraints. As
of December 2017, we helped 1,192 youths to enroll at
university by using our loan.
our finanCing for Women’s emPoWerment and disaBled PeoPle
In partnership with several NGOs, including WVI-C and
Rotary Club/Sustainable Cambodia, we promote women’s
empowerment, children’s rights and to support households
with disabilities to ensure that these families can access
affordable financial services to improve their household
livelihoods.
To assist households with disabilities to generate
household income and eventually improve their livelihoods,
we provide credit for these most vulnerable/disadvantaged
groups. Currently, we’ve reached out to 819 disabled
clients using a $728,371 loan portfolio.
soCial finanCing for agriCulture CooPeratiVes (aCs) ACs play a key role in local communities catalysing growth and
economic activity and providing services for farmers, especially
the poor, as well as linking agricultural producers to markets
and buyers. In addition, ACs have many business activities such
as saving groups, loan to members, Water Service Providers,
agriculture trading and other small businesses in order to help
its members increase income and well-being.
To support this activity, we launched a Social Cooperative Loan
(SCL) with a lower interest rate to ACs, especially in the target
areas of WVI-C, to give them access to appropriate credit.
Once they generate regular income for their cooperative, they
share it with their AC members. This results in their children
being well cared for in terms of food security, education,
clothing, etc. as part of improving community CWB (Child
Well-Being). As of Decedmber 2017, we reached out to 35
ACs ($224,600 portfolio) in the target areas of WVI-C. We
will continue to work with ACs for the next year onwards to
positively impact these communities and their children.
emBedded miCro insuranCes
VisionFund is proud to work alongside our partners to bring
additional benefits through micro insurances to clients and
their households. We’ve collaborated with insurance providers/
partners to provide two types of micro insurance for loan
clients, their household members and depositors/savers:
We launched micro health and personal accident
insurance in collaboration with PKMI (Prevoir
Kampuchea Microlife Insurance), a French affiliate
insurance company, to deliver this service directly
to the borrowers and their household members.
The provision of micro health and personal accident
insurance will result in substantial improvements
to the availability and quality of rural healthcare in
Cambodia and also help the borrowers avoid over
indebtedness in case they and/or their family members
face the health issues. We offer borrowers and their
household members benefits from this insurance
coverage in terms of small surgery, in-patient
treatment and other accident-related treatments. In
2017, 76,329 clients including their family members
were insured by PKMI insurance.
micro health and personal accident insurance with savers – double safety Programme
We also worked PKMI to provide free micro health
and personal accident insurance to savers who
have deposited a minimum of US$1,500 in a term
deposit of at least six months. This insurance has
been provided to depositors since 2015 as a “Double
Safety” programme, meaning that depositors have a
double safety insurance with VisionFund in terms
of their savings and free health insurance. As of
December 2017, 1,891 depositors were covered by
insurance for the period of their deposit accessing 37
claims worth of US$4,122.
micro health and personal accident insurance with borrowers – financial protection for healthcare and disabilities
46 47VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
ប្រហ្រលជាដប់ថ្ង្រមុន លោកអ្នកមិនបានឃើញគាត់ម្ន្រក់ន្រះនៅក្នុងភូមិទ្រ
“My husband and I were struggling when my three
children attended primary school together. We only
have our farm for our family income. However, all these
worries and struggles disappeared when I received a loan
from VisionFund to open a small grocery store at home
to support the daily and other expenses for the family,”
said Mrs. Phan, 38 years old.
Before accessing their VisionFund loan, her husband and
she always thought it was the most risky move, they
feared that they might not be able to repay the loan
as they relied on the income from their potato crop.
This was a risk to her family if the price of agricultural
products fell in the market. By the end of 2014, Mrs.
Phan decided to apply for the first loan to open a small
grocery store in front of her home. This was an income-
generating machine to reduce her daily expenses. After
using the loan, she saw that their total income increased
to 100,000 Riel (US$25) daily, and she spent only 30,000
Riel (US$7.50) on everyday expenses.
There were two things that had made Mrs. Phan’s business
successful. Using the budget properly and saving some of
her daily profits. This meant that she could support her
children to higher education.
After she repaid the loan, Mrs. Phan decided to apply for
a second loan to build a rice storage room under her
house. As her family’s living conditions were improving
and she was able to increase her daily savings to 50,000
Riel (US$12.30), she decided to apply for a third loan to
buy a small refrigerator and expand her small business.
With her daily savings, she bought agriculture materials
and farm materials to support her small business and
farming activities. Her husband also helped in looking
after the farm by ploughing, irrigating and fertilising,
so that their agricultural products could be sold at an
acceptable price at the market. Smiling with joy as her
family was doing well, her children could go to school,
have proper dresses, pure drinking water, nutritious food
and a toilet in her home, Mrs. Phan told VisionFund, “I
have never dared to dream something big before I got
my loans from VisionFund, now I can say that my future
dream is to see my children grow up healthy and become
STRUGGLE AND LOVE ARE THE KEYS TO SUCCESS IN BUSINESS
i never imagined something bigbefore i got the loan from Visionfund,
now my future dream is to see my children grow up healthy and become teachers, and i want to expand my small businesses into a large-scale
shop and farmland.
teachers, and I also want to expand my small businesses
into a large-scale shop and farm.”
After using three loans, her family had properties including:
70-square-meter rice storage room, a fridge, a motorbike,
a hogg and 13 cows. Finally, Mrs. Phan said, “Struggle and
love are the keys to successful businesses.”
48 49VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
MET YERNG CHARITY CONCERT VisionFund sponsored the Met Yerng Charity concert which aims to collect
10,000 books to distribute to underprivileged children. The charity concert
at Cambodian Korean Cooperation Centre (CKCC) at the Royal University
of Phnom Penh ran over three days in July. The collected books will help to
strengthen children’s reading capacity and share an important message: “The
culture of sharing can come from everyone; it only takes simple knowledge or
a small contribution and the willingness to make it happen”.
CorPorate eVent HigHligHts
STAFF SERVICE AWARDS
To acknowledge the dedication and commitment
of staff, VisionFund celebrated numerous awards
for staff.
SIGNING MEMORANDUM OF UNDERSTANDING BETWEEN VISIONFUND AND CAMIU
VisionFund held a ceremony to celebrate the signing of a Memorandum of Understanding with Cambodian International University (CamIU) at the Conference Hall of CamIU. The ceremony was attended by Ms. Top Sok Samphea, Chief Operating Officer of VisionFund and Mrs. Chea Neang Eng, President of CamIU along with distinguished guests, lecturers and students. As part of our work to reinforce the labour force in Cambodia, VisionFund has collaborated with many prestigious universities and institutes including Human Resource University, Build Bright University, Cambodian University for Specialties, Quality Career Institute of Cambodia, and many others. VisionFund strongly believes that in order for economy and society to grow, the country needs to have qualified and potential human resources in place.
BLOOD DONATION FROM VISIONFUND’S STAFF
VisionFund collaborated with the National Blood Transfusion Centre
to donate blood for the life of our nation at the Head Office on
February 22, 2017. To help save the lives of others, 28 members of staff
donated blood. This is part of our commitment and determination to
give back to the community through our financial expertise and social
responsibility work.
50 51VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
CorPorate eVent HigHligHts
THE HUNTER
On November 2 - 5, 2017 VisionFund Microfinance was very
pleased to see The Hunter Cambodia Discovery accomplish their
mission with a refreshing and delightful result. We sponsored the
Hunter extreme adventure trek in the Aural Mountains, the highest
mountains in Cambodia. The purpose of the Hunter is to pass on
knowledge about safe trekking, hiking and camping in order to show
young people how to survive or live in the forest. The special result
is to help promote Eco-Living (eco-system) and Tourism in Cambodia
through the creation of a short documentary video to portray the
history of the Aural Mountains.
VISIONFUND STUDENT SCHOLARSHIP
From 2008 to 2016, VisionFund supported 96 scholarship students who are the children of our best clients by providing school materials.
These children were suported through to their high school graduation. In 2017, 65 children have been awarded VisionFund’s support. This
figure has dropped as some of the existing children’s parents were no longer clients of VisionFund, some had failed to progress and some had
finished their high school degrees.
INFLUENCE YOUTHS THROUGH PROJECT INSPIRE 2017
The 2017 Project Inspire theme was “Understanding the Value of
Professions”. The aim of the event was to inspire Cambodian youth to
analyse their views of the world and widen their perspectives in order
to promote peace. It was a combination of three 10 minute TED-style
talks, one 50 minute panel discussion and two performances. VisionFund
sponsored Project Inspire Cambodia and ran a motivational workshop
on June 10, 2017 at Cambodia-Korea Cooperation Center (CKCC),
Multipurpose Hall.
52 53VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
ENVIRONMENTAL PERFORMANCE INDICATORS
MATERIALS
Paper in kg/FTE(1)
Loan form in kg/FTE
Office paper in kg/FTE
WASTE
Waste paper in kg/FTE
Tissue in kg
Hand Towel in kg
Toilet paper in kg
ENERGY
Electricity in kWh/FTE
Gasoline in I/FTE
Gasoline for motorbike in liter
Gasoline for vehicle in liter
Diesel in I/FTE
Diesel for generator in liter
Diesel for vehicle in liter
Lubricant in I/FTE
EMISSION OF CO2 (EQUIVALENTS - IN THOUSANDS OF KG)(2)
Electricity
Gasoline
Diesel
WATER
Water in m3/FTE
Water in m3
Drinking water
BUSINESS TRAVEL
By vehicle in km/FTE
By motorbike in km/FTE
SOCIAL PERFORMANCE INDICATORS
EMPLOYMENT Number of staff
Female
Male
Number of staff (FTE)
2015 2016 2017
(1) FTE: Average number of full-time co-workers during the year. (2) The CO2 equivalent is referred to the Greenhouse Gas Protocol calculation principles.
33.64
11.06
22.58
1.00 1,451.86
32.15
66.26
493.92
248.90
384,342.65
1,207
50.90
4847.22
74,005
N/A
420.79
925.32
216.84
24.63
37660.03
489.02
531
10,205.45
1489
554
935
1549
24.64
6.58
18.07
2.01 1,490.98
673.20
618.74
668.11
394.81
544,565.35
2,248.30
67.01
3,784.92
89,026
N/A
508.93
1,312.35
255.23
24.0332463.44
818.31
757
9,913.52
1389
466
923
1385
39.99
17.02
22.97
2.94
1633.90
952.75
1420.79
636.70
214.76
291,269.69
1,305
51.01
4273.47
65,226
N/A
477.07
702.18
191.12
22.94
30891.46
361.01
560
8,712.75
1420
513
907
1362
enVironmental and emPloYment data at a glanCe
54 55VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
VisionFund Cambodia promotes education in the community by providing funding to various educational programmes. VisionFund Scholarship is a scholarship that focuses on children who do not have access to education in the community, especially those from rural families.
The VisionFund Scholarship provides full funding to children and youth to support their education each year until they graduate from high school. This
scholarship is available to the children of outstanding clients and also offers three years of scholarship for less-protected children. We are committed to support this programme’s development, give opportunities and encourage children, talented students and outstanding students to make sure they will graduate high school.
VISIONFUND CONTINUES TO OFFER SCHOLARSHIPS TO CHILDREN IN CAMBODIA
Before I received this scholarship, it was very difficult to go to school. After school, I had to work to help my parents and as a result my results at school were falling. I felt sorry for my parents as they had to work very hard. When I received my VisionFund scholarship we were very happy. The scholarship will help make my dream come true to go to higher education and become a lawyer in my province. Said Long Thak Kour
Yang Ban is in a happy mood since receiving his
scholarship. “It has helped my education, especially as I
no longer have to ask my parents to buy school materials
like my school uniform. This scholarship is a great
motivation, I study hard to be able to support my mother
in the future. My dream is to become an IT Programming
Engineer.“
Difficulties, struggles and advice from my parents
taught me a lot, including the importance of learning
and coaching., I have been awarded scholarships from
VisionFund over the last three years. This is truly
invaluable for me and my family as this scholarship has
helped me to pay for study materials, uniforms, and
some budget for academic study, as well as a strong
motivation to achieve my goals for next year’s high
school graduation. Said Yong Sokna
56 57VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
FINANCIAL REPORTVISIONFUND’S ROBUST FINANCIAL PERFORMANCE HAS HELPED MAINTAIN ITS ORGANISATION RANKING AMONGST CAMBODIA’S TOP PERFORMING MICROFINANCE INSTITUTIONS.
Earning a net profit of US$3.1 million for 2017, the institution has total assets of US$196 Million, equity of US$34.3 million and a return of eq uity 9.39%.
58 59VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
ASSETS
Cash on hand 8,820,574 2,184,933 6,652,246 1,647,819
Deposits with banks 60,149,374 14,899,523 49,829,728 12,343,257
Loans to customers - net 672,380,245 166,554,433 573,461,695 142,051,448
Other receivables 11,015,947 2,728,746 11,748,243 2,910,142
Amounts due from a related parties 717 178 2,443 605
Statutory deposits 23,538,252 5,830,630 16,677,939 4,131,271
Investment 61,980 15,353 61,980 15,353
Property and equipment 7,261,119 1,798,642 8,791,292 2,177,679
Intangible assets 3,117,229 772,165 3,897,863 965,535
Deferred tax assets, net 5,003,017 1,239,291 1,477,209 365,918
TOTAL ASSETS 791,348,454 196,023,893 672,600,638 166,609,027
LIABILITIES AND EQUITY
Liabilities
Deposits from customers 182,180,082 45,127,590 145,642,186 36,076,836
Amounts due to related parties 2,016,327 499,462 9,223,955 2,284,854
Other accruals and payables 34,419,237 8,525,944 23,989,423 5,942,389
Current income tax liability 4,621,548 1,144,798 3,080,761 763,131
Borrowings 429,560,992 106,405,993 364,546,639 90,301,372
Total liabilities 652,798,186 161,703,787 546,482,964 135,368,582
Equity
Share capital 86,745,700 21,487,664 52,345,700 12,966,485
Retained earnings 51,804,568 12,832,442 73,771,974 18,273,960
Total equity 138,550,268 34,320,106 126,117,674 31,240,445
TOTAL LIABILITIES AND EQUITY 791,348,454 196,023,893 672,600,638 166,609,027
BalanCe sHeet AS AT 31 DECEMBER 2017
2017
KHR’ 000 US$
Interest income 138,128,290 34,215,579 146,762,484 36,354,343
Interest expense (45,602,487) (11,296,133) (41,937,706) (10,388,334)
Net interest income 92,525,803 22,919,446 104,824,778 25,966,009
Other operating income 14,327,156 3,548,961 2,548,341 631,246
Operating income 106,852,959 26,468,407 107,373,119 26,597,255
Allowance for bad and doubtful loans (16,269,049) (4,029,985) (7,019,868) (1,738,882)
Operating and other expenses (75,576,986) (18,721,076) (82,572,909) (20,454,027)
Profit before income tax 15,006,924 3,717,346 17,780,342 4,404,346
Income tax expense (2,574,330) (637,684) (3,817,925) (945,733)
Net profit for the year 12,432,594 3,079,662 13,962,417 3,458,613
inCome statement FOR THE YEAR ENDED 31 DECEMBER 2017
2017
KHR’ 000 US$
2016
KHR’ 000 US$
2016
KHR’ 000 US$
60 61VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
At 1 January 2016
Transferred to share capital
Net profit for the year
At 31 December 2016
US$ equivalents
At 1 January 2017
Transferred to share capital
Net profit for the year
At 31 December 2017
US$ equivalents
statement of CHanges in eQuitY FOR THE YEAR ENDED 31 DECEMBER 2017
Share capital
59,809,55744,365,400 7,980,300 112,155,257
-7,980,300 (7,980,300) -
13,962,417- - 13,962,417
52,345,700 -
18,273,960 31,240,44512,966,485 -
73,771,974 126,117,674
73,771,97452,345,700 - 126,117,674
(34,400,000)34,400,000 - -
12,432,594- - 12,432,594
51,804,56886,745,700 - 138,550,268
12,832,44221,487,664 - 34,320,106
Retained earnings
TotalAdditional capitalcontribution Cash flows from operating activities
Net cash used in operating activities (41,813,406) (10,357,544) 3,043,014 753,780
Cash flows from investing activitiesAcquisition of property and equipment (1,511,127) (374,319) (5,063,091) (1,254,172)Acquisition of intangible assets (83,506) (20,685) (2,286,999) (566,510)Proceeds from disposals of property and equipment 11,270 2,792 20,333 5,037Net cash used in investing activities (1,583,363) (392,212) (7,329,757) (1,815,645)
Cash flows from financing activities
Repayments of term loan to related party (7,468,450) (1,850,000) (28,767,721) (7,126,015)Proceeds from borrowings 222,692,188 55,162,791 144,465,618 35,785,390 Repayments of borrowings (159,540,845) (39,519,655) (102,095,827) (25,290,024)
Net cash generated from financing activities 55,682,893 13,793,136 13,602,070 3,369,351
Net increase in cash and cash equivalents 12,286,124 3,043,380 9,315,327 2,307,486
Cash and cash equivalents at 1 January 56,481,974 13,991,076 47,166,647 11,646,086
Currency translation difference - - - 37,504
Cash and cash equivalents at31 December 68,768,098 17,034,456 56,481,974 13,991,076
Significant non-cash transactionsAdditional capital contribution through conversion of borrowings from a shareholder 34,400,000 8,521,179 - -
Share capital through transfer from additional capital contribution - - 7,980,300 1,976,790
statement of CasH floWs FOR THE YEAR ENDED 31 DECEMBER 2017
2016
KHR’ 000 US$
2017
KHR’ 000 US$
KHR’000 KHR’000 KHR’000 KHR’000
62 63VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
OPINION
We have audited the accompanying financial statements of VisionFund Cambodia Ltd (“the Company”), which comprise the balance sheet of the Company as at 31 December 2017, and the income statement, the statements of changes in equity and cash flows for the year then ended, and notes, comprising significant accounting policies and other explanatory information as set out on pages 10 to 62.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at 31 December 2017, and its financial performance and its cash flows for the year then ended in accordance with Cambodian Accounting Standards and the guidelines of the National Bank of Cambodia relating to the preparation and presentation of financial statements.
RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation and fair presentation of the financial statements in accordance with Cambodian Accounting Standards and the guidelines of the National Bank of Cambodia relating to the preparation and presentation of financial statements, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
AUDITORS’ RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with CISAs will always detect a material misstatement
rePort of tHe indePendent auditors (ExTRACTEd FROM FINANCIAl STATEMENT FOR ThE yEAR ENdEd 31 dECEMbER 2017 ANd REpORT OF ThE INdEpENdENT AUdITORS)
64 65VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
OUR PARTNERS
our Partners
67VISIONFUND CAMBODIA ANNUAL REPORT 201766 VISIONFUND CAMBODIA
ANNUAL REPORT 2017
VISIONFUND INTERNATIONAL NETWORK
Bolivia [FUBODE]República Dominicana Ecuador [FODEMI] Guatemala [FODEMI]
LATIN AMERICA
Honduras [FUNED]MexicoPeru [CREDIVISION]Monrovia
GhanaKenyaMalawiMali [RMCR]Drcongo
AFRICA
Rwanda [Vision Finance]Senegal [SEMFIN]TanzaniaUgandaZambia
ArmeniaAzerbaijanBosnia & HerzegovinaLondon
MIDDLE EAST &EASTERN EUROPE
ASIA PACIFIC
Kosovo SerbiaMontenegro
CambodiaIndia MongoliaMyanmar
Statistical data including total outstanding portfolio and active borrowers are found on VisionFund International website: www.visionfund.org for the latest facts and figures.
Philippines Sri LankaVietnam
Total Outstanding Portfolio: Total Active Borrowers: Average Loan: Total # of Children Impacted:Total # of Jobs Impacted: Total % of Female Clients:
US$600,732,0001,237,000
US$5694,438,000 2,607,000
72%Data at September 30, 2017
68 69VISIONFUND CAMBODIA ANNUAL REPORT 2017
VISIONFUND CAMBODIA ANNUAL REPORT 2017
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The Annual Report can be accessed in soft copy through our website: www.visionfund.com.kh or in hard copy through Email: [email protected] #398, preah Monivong blvd, boeung Keng Kang I, Khan Chamkarmorn, phnom penh, Cambodia.Tel: (855)-23 96 3 333