$600,000 package to promote microfinance as key element of economic development.
On May 12 in Hanoi the State Bank of Vietnam (SBV) and the Asian Development Bank (ADB) organized a “Kick-off Workshop: Policy and Advisory Technical Assistance Supporting Microfinance Development Program (TA 8587 VIE)".
The project TA 8587 VIE: Supporting Microfinance Development is funded by a $600,000 non-refundable loan to Vietnam and is the latest project of ADB to support the microfinance sector, with the aim of creating a large financial market and giving power and opportunity to impoverished low-income earners. The project selects participants based on full information disclosure, to guarantee the security of borrowers and credit providers, and the borrower’s repayment capacity.
The project includes four parts: building a policy and legal environment that allows the microfinance sector to develop sustainably; improving the management and supervision of microfinance; strengthening financial institutions engaged in microfinance; and building the financial infrastructure necessary to support the development of microfinance.
To support the development of a microfinance platform the project plans to establish a professional training system that is comprehensively monitored and adjusted as required. The ADB will support the platform by providing financial information such as credit ratings and details on available credit packages. Through the development of microfinance programs the ADB hopes to support its promotion and bring such programs to a higher level in Vietnam, making microfinance an essential component of the country’s economic development.