In the morning of May 12th, 2015 in Hanoi, the National scientific conference on the role of Microfinance Institutions (MFIs) towards socio-economic development of Vietnam has been held within the framework of training and consulting programs on microfinance by Banking Academy in cooperation with the State Bank of Vietnam. The conference was attended by Prof. Dr. Nguyen Kim Anh – Deputy Governor of the State Bank of Vietnam, leaders of some departments of the State Bank, Banking Supervision Agency, Vietnam Bank for Social Policy, microfinance practitioners, microfinance organizations and institutions, as well as lecturers and researchers from institutes and universities…
The conference focused on discussing issues to realize the targets set out in the Scheme on building and development of a microfinance system in Vietnam through 2020, which was approved by the Prime Minister at Decision No. 2195/QD-TTg dated 06/12/2011.Other aims of the conference were to increase the sustainability of microfinance in Vietnam, make microfinance recognized and improve its contribution to poverty alleviation and social security.
The conference confirmed that in Vietnam, microfinance had played an active role in helping the poor and low income people to access financial services so as to develop production and business, improve material, cultural and spiritual conditions in contribution to the country’s goals of poverty reduction and people’s well-being. However, the development of Vietnam microfinance institutions in particular and microfinance providers in general was still limited due to some causes, namely: informal establishment of microfinance programs, small size, low quality services, high risks of credit and liquidity, weak risk management and information transparency, weak connection among microfinance programs and incomplete legal framework. Participating in the conference as a member of the organizer and the representative of TYM – the first official MFI in Vietnam, Mrs. Duong Thi Ngoc Linh – CEO of TYM had presented TYM’s experience during its growth and its transformation from a semi-formal microfinance organization into a formal microfinance institution. She also shared the principles of balance between social objectives and financial ones as well as the factors that helped TYM achieve current success of lifting over 100,000 members out of poverty and managing a portfolio of nearly 900 billion VND with an almost absolute repayment rate of 99,99%, etc.TYM’s experience became a valuable lesson for MFIs in Vietnam during the period of model transformation and organizational development.
After the discussion, the recommendations and comments at the conference will be compiled and sent to the State management agencies to help them complete and modify the legal framework for microfinance in Vietnam and create the best conditions for the development of microfinance sector in the near future.
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