NIKE INAUGURATES MICROENTERPRISE PROGRAM FOR WOMEN IN VIETNAM NIKE PARTNERS WITH AN NGO IN VIETNAM TO DISTRIBUTE BUSINESS LOANS TO ENTREPRENEURIAL WOMEN HO CHI MINH CITY, Vietnam, Oct. 13/PRNewswire-AsiaNet/ -- Working through local Vietnamese and U.S. partners, NIKE announced today that it signed a three year commitment to fund a microenterprise program in Vietnam that will provide immediate financial aid to under-capitalized women who want to start their own small businesses. Believed to be the first company in its industry to launch such an effort, NIKE's program will process loans from any female resident of the Vietnamese villages of Trung An and Tan Thanh Tay. Applicants are not required to be employed by NIKE-subcontracted factories in Vietnam. Doug Stamm, Director of Global Community Affairs at NIKE, explained NIKE's vision in creating the program: "Several months ago, we began exploring this idea, because it seemed to fit naturally with NIKE's record of helping to boost economic development in the districts where factories manufacture Nike products. Although our manufacturing presence in Vietnam is less than three years old, we believe it to be the best site for this pilot program for two reasons: 1)there is a need to expand employment opportunities, and 2)the country is experiencing rapid growth." Harsh Sanai, NIKE Asia Pacific, added, "Empowering women to form profitable business enterprises will be the measure of success. We are seeing much foreign investment into Vietnam and wanted to support opportunities for native investment among this critical population. We look forward to working with Friendship Bridge,an organization with solid experience in microenterprise development, and hope to expand our joint program if this effort proves to be a success." NIKE will work with its managing partner, Friendship Bridge, to expand a business development program that Friendship Bridge has been building for over four years. An NGO working in Vietnam and headquartered in Colorado, Friendship Bridge will be responsible for management of the joint program and will oversee the applications to the program, review submitted business plans and select the recipients. Under the combined loan program, each recipient will receive a business loan of US$85 that must be repaid within six months. The loan amount was set by determining the full range of likely startup up costs for women-owned businesses in Vietnam. For instance, a rice paper business can be started with US$5 and a sewing business can be funded with US$85. In total, almost 300 women will receive business loans in the inaugural year. NIKE is providing US$25,000 for the initial launch and will conduct a two-day business training section for all borrowers before they receive the loan. Connie Ning, the President of Friendship Bridge, commented, "We are very excited about the support of NIKE. We started our program committed to alleviating poverty among the poorest of the poor in Vietnam. After four years, the project has produced some tremendous results and has provided opportunities for families to break free from poverty. We look forward to a long and rewarding partnership with NIKE." In addition to Friendship Bridge, NIKE will work with the Vietnam Women's Union and the Vietnam People's Committee to encourage local women in the two villages to submit their business plans and take advantage of the program. The Cu Chi Women's Union will be responsible for the pilot effort since the chosen villages are located in the Cu Chi district belonging to Ho Chi Minh City. There are more than 30,000 people located in these villages, of which about 55% is female. Tran Thi Ty, President of the Cu Chi Women's Union, stated, "We are in the process of putting together a list of borrowers and are very eager for the good opportunities NIKE can provide disadvantaged women. This program can help them gain income for their families, send their children to school and know more about public health. On behalf of poor women in Trung An and Tan Than Tay, we think this is very useful project." Per most microenterprise programs, there is no collateral requirement for the loans and each borrower will be asked to save money every month as a way to start building their savings habit and also to generate a good interest rate (1%) in comparison to the average 0.7% from a formal bank institute. The savings will be redistributed immediately to benefit more borrowers at a 1.2% interest rate. And 0.2% will serve as a community fund to help the villagers in times of emergency. Interest payments are to be made monthly and the principle is to be paid either monthly or will be negotiated if the business will require a longer period of time for a cash return. To create cooperative liability for the loans, five borrowers who live near each other will form a small group to meet weekly to help each other with business and financial problems. The group will be liable for any default on repayment. In addition, three to six small groups will form a larger group to meet monthly to carry out community and educational activities such as family planning and health care for children. The Cu Chi Women's Union will work together with local health centers to send in doctors every month to combine the saving activity and to train the female borrowers on public health practices, based on the guidelines of the Ministry of Health in Vietnam. For more information on NIKE and initiatives taken on behalf of its workers, please refer to www.nikeworkers.com SOURCE NIKE CONTACT: In Asia, Harsh Saini, 852-2306-2092. In U.S., Vada Manager 503-671-2875, both for NIKE (NKE)