Microfinance Fund Management – Case Studies in Vietnam and the World

Abstract

Microfinance in Vietnam provides primary financial services to people with low incomes and poor households, who are often excluded from the formal financial system. The goal of microfinance is to help poor people escape poverty and improve their quality of life. Microfinance activities in Vietnam are managed by the State Bank of Vietnam through a system of legal documents. There are 3 types of microfinance institutions: Official microfinance institutions: Licensed by the State Bank; Semi-official microfinance institutions: Licensed by the People's Committee of the province or city; and Microfinance programs and projects: Implemented by non-governmental organizations and social organizations. Microfinance has achieved many positive results: Minimization; Job creation; Promote socio-economic development. However, microfinance also has some limitations: Accessibility is not high, and Core performance is high risk. To develop solid microfinance, it is necessary: There is close coordination between state management agencies, microfinance organizations, and non-governmental organizations; There is policy support to raise people's awareness. Microfinance plays an important role in promoting economic and social development in Vietnam.