[8 Dec 2014] - The Asian Development Bank (ADB) is providing $1 million technical assistance for Strengthening Microfinance Sector Operations and Supervision to develop formal microfinance and promote financial inclusion in Viet Nam. The technical assistance is funded by the Japan Fund for Poverty Reduction a grant basis. The technical assistance aims at strengthening both operational and supervisory capacities to develop market-oriented microfinance, which will eventually better serve clients nationwide in need for a variety of quality financial services provided through the banking system.
ADB has been supporting the Government of Viet Nam in developing the microfinance sector since 2000. The ongoing Microfinance Development Program is the first full-scale assistance from ADB, including 2 Subprogram Loans with a total amount of $90 million and a number of related technical assistance to support the implementation of the government’s Viet Nam Microfinance Development Strategy, 2011-2020. The technical assistance is an integral part of the Program, aiming to strengthen overall capacity of the microfinance sector and support a healthy development path to a sustainable and affordable microfinance industry integrated in the banking sector. A series of microfinance assistance is part of the overall ADB efforts to support the government reform agendas, along with promoting nonbank financial institutions, supporting small and medium-sized enterprises and reforming state-owned enterprises. The technical assistance is closely interrelated to the main Microfinance Development Program, focusing on capacity development.
The consortium AFC Consultants International and Economica Vietnam was selected to implement the technical assistance. Under the project, the first series of capacity building has been organized for the SBV (Banking Supervision Agency and various departments), the MOF (Insurance Supervision Agency, the Banking and Finance Departments), the National Financial Supervision Commission, the Ministry of Planning and Investment, etc.
In the last few months, AFC Consultants International and Economica Vietnam also worked on and discussed with a wide range of stakeholders on how to establish a nationwide formal microfinance training network in collaboration with training institutes including Banking Academy’s Microfinance Center and the Microfinance Working Group (MFWG).
In the coming years, the consortium will, in strong coordination with SBV, continue with the delivery of the outputs of the projects, including (i) training to MFIs, CCF/PCFs, and VBSP; (ii) training to SBV, MOF and MPI supervisors; (iii) Established a network of formal microfinance training; and (iv) knowledge sharing opportunities overseas.