Microfinance Country Information

Vietnam's GNP in 1995 was less than $16 billion, and the country has one of the lowest deposit rates in the developing world - less than 25% of GDP, compared with a 75% world average. It is no surprise that an estimated $2 billion is being hoarded outside the banking system and that informal credit rings are flourishing.

Balfour, Frederik, "Why are we in Vietnam?" Institutional Investor Vol. 30 No.1, p. 115-116, January 1996

Some Microfinance Institutions in Vietnam:

Vietnamese Bank for the Poor (VBP).
The Vietnam Bank for the Poor set up in January 1996 by the communist government to eliminate hunger and alleviate poverty, may not have the cachet that the fast-developing country's upwardly mobile urban classes are seeking. But the nonprofit savings and loans bank has already brought help to more than a million households across the country.

Vietnamese Bank of Agriculture (VBA).
The VBA seems to be committed to replicate a Vietnamese version of the Indonesian BRI. They have created a separate microfinance department within the Bank and plan to establish a network of specialized microfinance units for every three communes.

People Credit Fund (PCF).
The PCF is under the direct management of the Central Bank. The project is funded by ADB and CIDA with technical assistance from SDID Desjardin. As of September 1998, there were 983 caisses serving 625,000 clients and with consolidated assets of US$ 128 million .

Microfinance Resource Center (MRC).
This new center is located in the Hanoi National Economic University. The center is supported by CGAP and GRET, and is in a good position to lobby the central bank on microfinance issues and to develop human resources in this new sector.

Resource Links:

Hari Srinivas - hsrinivas@gdrc.org
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