On March 30, 2021, in Hanoi, the State Bank of Vietnam (SBV) and the Asian Development Bank (ADB) jointly organized a workshop on the assessment of microfinance development strategy in Vietnam within the framework of an ADB-funded technical assistance project.
Deputy Governor Dao Minh Tu delivers an opening speech at the workshop
Deputy Governor Dao Minh Tu attended and delivered an opening speech at the workshop. Also attending the workshop, there were representatives from several ministries, agencies, provincial people’s committees; the SBV relevant entities and several SBV municipal and provincial branches; various credit institutions, microfinance institutions; the Working Group on Microfinance, and other institutions.
In his opening speech, Deputy Governor Dao Minh Tu shared that over the past time, Vietnam has obtained many encouraging results in the economic development and sustainable poverty reduction with great contributions from microfinance operations, which have played an important role in creating opportunities for the poor and low income people to get access to financial and banking products and services, as well as in containing the growth of “black credit”. However, the SBV Deputy Governor also emphasized that microfinance institutions, microfinance programs and projects have been facing many difficulties and challenges. In response to those challenges, the legal framework for the operations of microfinance institutions has seen a lot of improvements, with a view to creating more favorable conditions for the sustainable, safe and effective development of the microfinance industry in Vietnam. That the operations of microfinance institutions are governed by the Law on Credit Institutions and other relevant legal documents is an important progress for the microfinance industry in Vietnam. This is a solid legal basis for the stable development of the microfinance industry in Vietnam.
An overview of the workshop
In addition to that, in order to have consistent and long-term orientations and strategies for the development of the microfinance operations, the Prime Minister has promulgated Decision No. 2195/QD-TTg dated December 6, 2011 approving the Scheme on the Formulation and Development of a Microfinance System in Vietnam to 2020 (Scheme 2195); issued Decision No. 20/2017/QD-TTg dated June 12, 2017 regulating the operations of microfinance programs and projects; and signed Decision No. 149/QD-TTg dated January 22, 2020 approving the National Financial Inclusion Strategy until 2025, Vision to 2030.
According to the SBV Deputy Governor, the current review of the implementation of Scheme 2195 was aimed to draw lessons and understand about practical constraints, thereby coming up with policy recommendations for the sustainable development of the microfinance industry, contributing to the effective implementation of the National Financial Inclusion Strategy.
The SBV Deputy Governor expressed his hope that the participants in the workshop would focus on discussing, exchanging and assessing the impacts, advantages and disadvantages after ten years of implementing Scheme 2195. Thereby, the SBV would have more theoretical and practical bases for advising the competent authorities to improve the legal framework, and to implement appropriate measures to achieve the targets set out in the National Financial Inclusion Strategy until 2025, Vision to 2030.
Mr. Andrew Jeffries, ADB Country Director for Vietnam, speaks at the workshop
Speaking at the workshop, Mr. Andrew Jeffries, ADB Country Director for Vietnam, shared that there are many opportunities for strong microfinance development in Vietnam. Therefore, the objectives of this workshop were to assess the microfinance development strategy in Vietnam and to share practical experience from other countries so that the relevant stakeholders can draw out their own lessons, and thereby can develop the microfinance systems in their respective countries.
At the workshop, Ms Lene Hansen, Senior Financial Specialist, made a presentation on the results of a recent assessment of the legal framework for microfinance operations in Vietnam, and shared several models of microfinance systems in the world. After that, representatives from the ministries, agencies, provincial people’s committees, etc. exchanged and discussed the impacts, advantages, disadvantages, and possible recommendations from the implementation process of Scheme 2195 on microfinance development.
On the side of the workshop, there was also an small exhibition on microfinance operations through various photos and videos shown at different booths.
Le Hang