On the 31st of May 2017, in Hanoi, Deputy General Director of TYM, Ms. Dao Thanh Trang attended in a roundtable discussion on the role of the private sector in promoting Financial Inclusion in Vietnam. The talk was led by Queen Maxima as the United Nations Secretary General’s Special Advocate for Financial Inclusion to promote access to financial services.
TYM participated in the roundtable discussion with the Dutch Queen on Financial Inclusion
Financial inclusion is the provision of appropriate and convenient financial services, especially for low-income and vulnerable people to increase the opportunities of assessing financial services, thus enhancing the livelihood, augmenting cash flow of investment capital and of savings, thereby boosting economic growth. Financial inclusion is an important foundation for economic development and poverty reduction. Financial inclusion is implemented in five main ways: Development of new products, diversifying networks of financial service providers, financial infrastructure development, protection of financial service users and universalizes financial education.
Microfinance plays a crucial role in implementing financial inclusion, especially in emerging countries like Vietnam. As the very first official licensed microfinance institution (MFI), alsoone of the largest MFIs in Vietnam, TYM was invited to attend and contribute ideas during the talkon financial inclusion with Queen Maxima. At the discussion, TYM’s representative, Ms. Dao Thanh Trang,informed theQueen about the situation of microfinance sector in Vietnamhighlightingits acheivements and challenges. TYM also made suggestions to create favorable conditions for the growth of MFIs and maximizethe capacity of MFIs to effectively promote financial inclusion. Queen Maxima highly valued the ideas of TYM and those of the other institutions participated in the talk; these initiatives will be important inputs for the Queen’s meeting with Vietnamese government authorities concerning the establishment of appropriate policies and regulations to create favorable conditions for advancing financial inclusion in Vietnam.
Other articles on the activities of Queen Maxima of the Netherlands in Vietnam:
Vietnam National Assembly Chairwoman Nguyen Thi Kim Ngan received Queen Maxima
In the afternoon on the 31st of May 2017, Vietnam National Assembly Chairwoman Nguyen Thi Kim Ngan received Queen Maxima of the Netherlands.
At the meeting, Chairwoman Ngan emphasized that Vietnam would like to receive support from the United Nations to develop financial inclusion.
The Chairwoman said that she will assign one of the National Assembly’s committees to supervise agreements. She added that Vietnam has the Bank of Social Policy providing financial services to the poor and disadvantaged people in rural, mountainous and remote areas. However, due to the weakness of working conditions and poor infrastructure in those regions, the performance of the bank in such areas is not high. Thus, Vietnam wants to receive more support from the international community including the Netherlands in this area.
Queen Maxima highly appreciated the the State Bank of Vietnam’s work in drafting the national plan for financial inclusion. Nevertheless, the Queen reiterated that the process shall need the contributions of related ministries and agencies, especially the private sectors and NGOs. She asserted that such a professional system shall attract prestigious institutions to invest in financial inclusion enhancing economic growth.
Asking Ductch Queen tosupport Vietnam to mobilize funding resources and technical assistance
Deputy Prime Minister Vuong Dinh Hueproposed Queen Maxima, asthe United Nations Secretary General’s Special Advocate for financial inclusion, assist Vietnam in mobilizing funding resources and technical assistance from the United Nations and other international organizations to effectively implement financial inclusion.
On the 1st of June2017, Deputy Prime Minister Vuong Dinh Hue greeted Queen Maxima of the Netherlands on the occasion of her working visit to Vietnam.
The visit aimed to better the ties between the Netherlands and Vietnam. It was also an opportunity to share information and experiences in promoting financial inclusion in Vietnam.
The Deputy PM expressed his eagerness to receive and work with Queen Maxima while insisting that this was a chance for both sides to talk about the mission and vision for the draft, issuance and implementation of financial policies. This event is a milestone for relations between the two nations.
Queen Maxima said that during this visit, she and related Vietnamese authorities discussed financial inclusion strategies of with effective and strong liquiditywhich meets the socio-economic needs of people. In particular, attention was paid to the policy of micro-credit for SMEs, an enormous resource for the growth of jobs and the economy.
In addition, according to Queen Maxima, the content of this topic is not only about credit policy, but also the areas of savings and insurance to help people avoid risks in businesses.
The high number of people in Vietnam using cell phones creates favorable conditions for the creation of IT solutions to accelerate financial inclusion.
Agreeing with the Queen’s evaluations, the Deputy PM was aware that three crucial factors for growth are the sustainability of the economy, society and the environment. The comprehensive growth agenda was adopted by Vietnam and was included in the APEC-2017 Ministerial agenda.
Over the past years, Vietnam has applied many policies related to financial inclusion through microfinance and agricultural credit, credit security for SMEs and the poor, occupational loans and student loans.
However, Vietnam needs to have financial inclusion policies, at the same time provide communication skills training to policy implementers and beneficiaries to better acknowledge their financial rights and obligations. The dissemination of financial inclusion policy needs to ensure market principles, and the role of the Government must be in line with the market situation.
The Deputy PM proposed the Queen of the Netherlands, in her capacity as the United Nations Secretary General’s Special Advocate for Financial Inclusion, support Vietnam in mobilizing financial resources and technical assistance from the United Nations and other international organizations for the effective dissemination of financial inclusion.