Microfinance

How We Measure Poverty in Vietnam

What does it mean to be poor in Vietnam? In Hanoi in the late 80s, poverty was all around. Most of the population then was living under the international poverty line ($1.25 per day). Because there were no living standard surveys to measure poverty, there was no clear indication of what it meant to be poor. A rich person at that time was someone with either a motorbike or a television set, while a poor one was a street beggar or someone who did not have enough rice to eat. …

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Microfinance

What are small and medium enterprises?

On 11 March, the Government issued Decree No. 39/2018 / ND-CP detailing some articles of the Law on Support to Small and Medium Enterprises. This Decree clearly stipulates criteria for determining small and medium enterprises. Criteria for determining small and medium enterprises Accordingly, the decree stipulates that small and medium enterprises are classified by size including micro enterprises, small enterprises and medium enterprises. Micro enterprises in the fields of agriculture, forestry, fishery and industry and construction have an average number of laborers participating in social insurance not exceeding 10 persons…

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Financial Inclusion Microfinance

Vietnam’s financial inclusion priorities: Expanding financial services and moving to a ‘non-cash economy

It’s nighttime and the streets are bustling in Vietnam’s cities and towns. Buoyed by years of strong growth, the country has a burgeoning middle class with purchasing power to sustain restaurants and cafes, full and open late into the night, busy retailers and a high penetration of mobile phones – more than one per person. The economy, however, continues to run on cash and a majority of adults still don’t have formal financial services such as a basic transaction account. Moving to a “non-cash” system is a priority for the…

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Financial Inclusion Microfinance Value chain

VIETNAM MICROFIANCE INSTITUTION BECOME TO PROFESSIONAL ORGANIZATION, BECOME TO THE FIANANCIAL INTERMEDIATION AND SOCIAL INTERMEDIATION

Microfinance works to improve economic conditions for poor clients, help them increase their incomes and improve their lives, by providing financial services to them. In fact, the poor often have difficulty accessing formal financial services due to a number of barriers, especially without collateral, when accessing formal credit services. In addition, MFIs are aiming to provide long-term clients with the ability to access sustainable financial services. Thus, microfinance is considered as a development tool for the poor, not just a financial service and it targets the following specific development goals:…

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Microfinance

Research Report on “Microfinance Products and Services: Current State and Development Solution”

Microfinance institutions (MFIs) worldwide and in Vietnam are strong in providing products and services suitable to poor and low-income customers as their vision, strategy and business model from inception focus on this market segment. However, along with the robust development of information technology, digital financial services, agent banking as well as the trend and strategy of financial inclusion development across the globe and in Vietnam, these strengths have gradually become weaknesses. In this context, this study focuses on: (i) systematizing theories and practical experiences in the world related to microfinance…

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Microfinance

Decision 20/2017-QD-TTg, date 12/6/2017 on regulations on activities of microfinance programs and projects

On June 12, 2017, the Prime Minister issued Decision No. 20/2017 / QD-TTg regulating the activities of microfinance programs and projects of political organizations, society, non-governmental organization. Subjects of application under the Decision are political organizations, socio-political organizations and non-governmental organizations; The ministries, the ministerial-level agencies, the agencies attached to the Government, the People’s Committees of the provinces and cities, the organizations and individuals involved in the operation of microfinance programs and projects of political organizations, Socio-political organizations and non-governmental organizations. 1. Conditions for registration of microfinance program or project…

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Microfinance

Rabobank visits the value chain of Quynh Luu

On March 1-3, 2017, a team of RaboBank correspondents from the Netherlands visited and interviewed the implementation of Rabobank funding to support pineapple farmers in Quynh Luu and Nghe An through VietED Fund. Within the framework of the visit, the Rabobank’s correspondent greatly admired the will of the local people and was impressed by the work that VietED has been doing to help farmers overcome poverty. Officials from VietED sent a reporter from RaboBank to visit the pineapple forest in Quynh Luu and stopped visiting the pineapple field of Bui…

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Microfinance

Study Report on “Microfinance in Vietnam: The real situation and policy recommendations”

Vietnam Microfinance Working Group (VMFWG) has published the Study Report on “Microfinance in Vietnam: “The real situation and pocily recommendations”. This Report creates an overall picture which reflects the real situation of operating environment, policy and regulatory framework for microfinance institutions.  Additionally, this Report does not concentrate on theories while deeply analyzing, evaluating comprehensively the current situation of microfinance activities of licensed microfinance institutions and programs/ projects in Vietnam. On that basis, recommendations and proposals taking practical and concrete actions to remove the present “knot” are expected to produce a…

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