Senior government officials visit World Vison microfinance in Danang
Text: Tran Thi Van Hong
A delegation of high-ranking government officials who are in charge of Vietnam’s microfinance paid a one-day visit to World Vision’s mircofinance programme in Danang in late 2015.
The officials studied the current challenges toward the organisation’s programme as well as the whole microfinance sector through a trip to Hoa Vang, a mountainous district of the city. Based on the findings, they will propose revisions to the current regulations, which will enable the sector’s development together with the Government’s Strategy for Micro-finance until 2020.
The delegation, led by Deputy Governor of the State Bank of Vietnam, Mr Nguyen Phuoc Thanh, was comprised of representatives from the bank and other agencies including Ministry of Planning and Investment, Ministry of Foreign Affairs, Vietnam Women’s Union and Vietnam General Confederation of Labour.
At present, many borrowers and local partners are not clear about sustainable microfinance and its interest rate applied in the country. The rate, which is driven by the market, is often higher than offered by traditional providers with a subsidy from the government, such as Vietnam Bank for Social Policies.
Responding to this issue, the deputy governor said, “Interest rate is not a key factor. What is more important is that the poor and those with low income can access appropriate loans when needed. With the loans, they can start or expand their businesses to increase their income and improve their lives. If microfinance institutions can’t cover their operation cost, how can they survive, let alone giving a hand to others?”
World Vision has promoted its microfinance program in Vietnam since 2006. The program has disbursed 68,233 loans with total value of US$22 million to 26,600 poor families and those with low income in rural areas. Their work has made sustainable impacts on more than 34,000 children to date.
The program’s competitive advantage is that besides providing loans, it offers borrowers necessary knowledge and skills such as cultivation, husbandry and saving habits in integration with World Vision’s development program in the locality. Consequently, borrowers are using the money effectively and able to not only repay the loans in full but also improve their lives.
World Vision's microfinance programme has disbursed 68,233 loans with total value of US$22 million to 26,600 poor families and those with low income in rural areas.
The work has made sustainable impacts on more than 34,000 children to date.