Developing sustainable microfinance has becoming a significant objective for economic development and been considered the extremely effective tool in the progress of eliminating hunger and reducing poverty when United Nations chose 2005 as “International Year of Micro-Credit”
In Vietnam, throughout about three decades, Microfinance sector has been asserting the importance in supporting the poor, low-income people to access financial, banking services in a convenient and consistent way. Therefore, developing sustainable microfinance is the important objective of Microfinance sector in the process of integration and development. With the goal towards sustainable microfinance sector, Government approved the Scheme of Developing organizational system of Microfinance to 2020 with the aim of “Establishing and developing organizational system of Microfinance safely, sustainably towards supporting the poor, low-income people, microenterprises to contribute to implement the undertakings of the Party and Government about ensuring social security and sustainable poverty reduction”. This is also a significant turning point in the evolution of developing microfinance activities in Vietnam as well as affirming the State’s acknowledgment about the role and position of microfinance in the national financial system.
It can be asserted that regulatory framework plays a very crucial role in the development of microfinance institutions in Vietnam. In facts, Microfinance Institutes are facing to lots of difficulties, challenges in the institutionalized process in order to developing activities in a sustainable way. The process of formalization of microfinance institutes is still slow since many different reasons, one of which is the issue relating to legal regulations for microfinance operation. That is also the concern of Microfinance institutes, Microfinance practitioners in the process of building strategic orientation in developing their own institutes. With the financial support from ADA – Luxembourg Organization, Cordaid – Netherlands Organization, and Citi Foundation – Citi Bank, and coming from the desire of many membership organizations of VMFWG, the content of this Bulletin 19 focused on the theme of “Microfinance Regulations in Vietnam”.
Editorial Board would like to sincerely thank the organizations and individuals who have contributed in building and accomplishing process of this Bulletin, to meet the demand of readers. We hope that the content of the Bulletin will help MFIs Vietnam attain more valuable experience to conditionally determine the direction for sustainable development in the future.
Please download this Bulletin here