Vietnam is a potential market for microfinance services due to a strong demand for capital and financial services in order to develop its agriculture and rural areas in general, and household economy in particular. Sustainable microfinance will support the economic growth, and today it is renowned globally as a key poverty reduction tool, not only in Vietnam but in many other developing countries. However, many microfinance institutions (MFIs) in Vietnam still need external financial support to implement their activities.
It has been proved that a sustainable development of a MFI depends on its capacity to have more customers, expand its operating area, develop and diversify its products and services, and improve its liquidity. However, it is not easy to achieve this target to serve the poor while MFIs still depend on external funds in spite of their effective operation. Moreover, under the legal framework, it is impossible for these MFIs to mobilize public savings and attract investment from other organizations.
Recently, the legal framework and microfinance regulations have been amended to support the development of MFIs, namely the approval of “National Microfinance Strategy to 2020” and the release of several guidance documents regarding to microfinance operation and management. However, some gaps in these documents have not been filled to serve the best operation of MFIs. These barriers have been preventing MFIs from accessing to public savings while their capital is more and more limited. Therefore, a sustainable development has not been achieved by many MFIs.
In order to meet the demand of organizations and individuals on understanding the impact of policies on strategies to access and attract fund for microfinance activities, Vietnam Microfinance Bulletin No.20 focuses on the theme of “Microfinance: Policies and Capital”. We hope that all readers will enjoy reading the information and the experiences shared by researchers, policy makers, and microfinance practitioners.
The Editorial Board would like to sincerely thank to the organizations and individuals who have contributed to the release of this Bulletin No.20 on “Microfinance: Policies and Capital”. We also hope that the Bulletin No.20 would be available to all readers interested in Vietnam microfinance in the process of integration and development.
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