Vietnam Microfinance Country Profile

Encapsulating the Vietnamese microfinance sector
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This paper presents the microfinance profile of Vietnam. It describes the:

  • Need for microfinance services since 40% of the households do not have access to formal financial services;
  • Development of microfinance sector marked by government interventions through the state-owned banks and programs;
  • Growing presence of formal and semi-formal sector in the provision of financial services to rural poor;
  • Delivery models for credit with adapted group lending and Grameen Bank methodology, and deposit mobilization with compulsory savings as popular trends;
  • Efforts to enact a decree on regulation and supervision with the support of Asian Development Bank.

The paper also discusses the challenges that the sector faces:

  • Lack of comprehensive regulatory framework;
  • Government intervention and, thus, unsustainable banking practices like subsidized interest rates;
  • Credit-focus with regulatory constraints for deposit mobilization;
  • Lack of funds;
  • Lack of institutional capacities.

Finally, the paper concludes with the efforts of the various organizations to support the microfinance sector.

About this Publication

By Asia Resource Centre for Microfinance (ARCM)