Case Study

Habitat for Humanity Vietnam Partnering with MFIs to Improve Housing for the Poor

Exploring strategic considerations for MFIs and NGOs entering the housing finance market in Vietnam
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This study explores strategic considerations for MFIs and housing NGOs entering the housing finance market. It is part of a series of microNOTES addressing current issues in housing microfinance. Habitat for Humanity-Vietnam (HFH-VN) established partnerships with two different types of Vietnamese microfinance providers, Womens Union of Kien Giang Province (WU-KG), and Capital Fund for the Employment of the Poor (CEP). WU-KG and CEP took different approaches to incorporating technical assistance from HFH-VN. This study assesses the outcomes of each approach. It demonstrates the role of technical assistance from a housing NGO for planning, design, and construction along with housing microfinance products offered by the two MFIs. Conclusions include:

  • Strategic considerations for MFIs include how to access low cost funds, share risk, diversify products and services, build institutional capacity, and provide incentives to staff;
  • Strategic considerations for housing NGOs in microfinance include long term viability of partnerships, accessing support for best practice microfinance and ensuring that partners are like-minded;
  • Potential conflicts between housing NGOs and MFIs include resistance from MFIs to providing non financial services, and lack of a clear definition of poverty focus.

About this Publication

By Kruize, A.D., Mitten, L. & Johnston, C.