The project will be located in Can Gio, a rural district of Ho Chi Minh City. Dan Xay, in the centre of Can Gio, lies 45km from the edge of Ho Chi Minh City proper. In 1991 Can Gio was designated as a protected and environmental forest; the Agricultural Department of Ho Chi Minh City has, however, been involved in reforesting this mangrove forest, the largest in southern Vietnam, since 1978. Reforestation was necessary due to the destruction of an estimated 57% of the mangrove forest by chemical defoliation during the second Indochina war.

The living conditions of many of the Can Gio people, living in both the forest and the village are very low. A major socio-economic survey undertaken in An Nghia village (located at the edge of the forest area) in 1991, found that families classified as poor or very poor suffer from a lack of cash temporarily or permanently over the year. Female headed households were more likely to be classified as very poor. The intrusion of saline water makes rice cultivation difficult in the northern part of the district and impossible in the south. For many families both in the village and in the forest poverty is such that they have to take their children out with them during the day, in order to collect snails and crabs for sale. Studies undertaken over the intervening period, including those made by SCC this year, show that little has changed. It is these families that we are targeting.

By giving families access to credit which would otherwise be inaccessible or only available from moneylenders at very high rates of interest we hope to give them the chance to improve their standard of living without encouraging dependence. Households are free to use their loan as they wish. For the poorest households access to loans for consumption purposes is an important means of stabilising their household economies. Our fieldwork has shown a high proportion of families to have erratic incomes; most households have to survive periods of several months each year with little or no income. Coupled with exceptionally high demands on the household budget at certain times of year (Tet, Vietnamese new year) or celebrations (weddings) or the need to cope with disaster (flood, disease and so on) families need a source of capital that is available at non ruinous rates. The flexibility of the loans given by SCC has been designed to enable beneficiaries to cope with such demands. Where households do borrow for consumption purposes, this may free up other sources of income for productive investment.

To provide the poorest people with easy and flexible access to capital in order to invest as they wish at affordable rates of interest.

Increase the income of the family and raise living standards.

Encourage groups to develop a register of responsibilities to be followed by the borrower.

To increase the number of children attending school on a regular basis.

Provide a forum, in future years, for the dissemination of the information with regard to basic maternal and child health care knowledge and family planning, by the Women's Union. We shall also promote the UNICEF "Fact for Life".

Strengthen the organisational capacity of the Women's Union, and increase their membership in the forest.

Compulsory savings to demonstrate creditworthiness and to add to the self confidence and self esteem on the beneficiaries. The savings fund shall also act as another source of credit and aid in creating a sustainable programme.

Help the poorest people to realise their own potential and gain confidence in their own abilities to solve the difficulties they face in their everyday lives.

Provide extension service and/or technical training for participants.

Support the Forest Protection Households in their important ecological role and engender a co-operative responsibility towards the use of the forest.

Support and consolidate SCC's existing educational, environmental and health activities in the area.

• Increase in net incomes of participants.
• More children attending school, and more regularly.
• Expansion of credit programme coverage.
• Improvement in living standards and accumulation of household capital.
• Minimum of 150 loans given to households in the first year, rising to 300-400 loans by the end of the third year.
• Training given in accounting and bookkeeping.
• Extension advice and training given, as required by participants.
• Creation of savings fund for participants with instant access which will eventually be available for use as an additional loan fund.
• Interest paid on loans which shall pay for administration costs.
• Increasing confidence in savings signified by increases in levels of weekly deposits.