VISIONFUND MICROFINANCE INSTITUTION...portfolio increased further to US$170 million and we continued...

VISIONFUND MICROFINANCE INSTITUTION

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).



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



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



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



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



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.



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



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%



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



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$



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.



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



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 Size: 3,000 – 25,000 USD


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



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



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.



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.



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



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%)



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$) %



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.



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



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.”



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.



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.



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



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



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%.



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$



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



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)



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



des

igne

d by

Cre

ativ

e Se

rvic

es U

nit

| Visi

onFu

nd C

ambo

dia

© 2

018

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

VISIONFUND MICROFINANCE INSTITUTION...portfolio increased further to US$170 million and we continued...

Documents

Transcript of VISIONFUND MICROFINANCE INSTITUTION...portfolio increased further to US$170 million and we continued...