Workshop: Closing of TA JFPR VIE 9140 ” Formalizing microfinance institutions” & introduction of the new JFPR- Funded policy and advisory TA (PATA)

This post is also available in: Tiếng Việt (Vietnamese)

Introduction

Hanoi, Vietnam (28 September 2012) – The Asian Development Bank (ADB) and the State Bank of Vietnam (SBV) co-organized the closing workshop for the Grant Project for Formalizing Microfinance Institution and introduction of the new technical assistance for Supporting the Microfinance Sector Development both funded by the Government of Japan.

More than 100 participants attended the workshop, including representatives from the State Bank of Vietnam (SBV), line ministries and agencies, international organizations, and microfinance institutions and programs. Mr. Hirofumi Miyake, Counselor, Chief of the Economic Section represented the Japanese Embassy and made a speech at the workshop.

“A series of microfinance projects are integral part of the ADB assistance package seeking to nurture emerging microfinance institutions (MFIs) integrated into the formal financial sector, and encouraging reforms and restructuring of microfinance-involved state financial institutions’, said Mr. Eiichi Sasaki, Senior Financial Sector Specialist of the ADB.

Since October 2010, the $1.5 million Grant Project has been helping semi-formal microfinance organizations to transform and upgrade themselves to become formal MFIs licensed by the SBV. So far, 2 MFIs have been formalized and placed under the SBV’s prudential norms, which are now well positioned to further expand the outreach to poor clients with strengthened institutional and operational capacity. Several others are applying for a license. The project has also helped enhance supervisory of microfinance at the SBV.

Meanwhile, a new policy and advisory technical assistance (PATA) of $500,000 was signed on 12 September 2012 to assist the Government of Viet Nam in the implementation of the microfinance regulations and in the development of fiscal and regulatory incentives for the microfinance operating credit institutions, a microfinance credit information exchange system, and the microinsuranceregulation. The PATA is an integral part of the ADB’s $40 million Microfinance Development Program, which was signed earlier.

“The Government of Japan stands ready to join the ADB to support the Government of Viet Nam to develop a formal and sustainable microfinance sector in Viet Nam, contributing to the country’s financial sector development and balanced economic growth.” said Mr. Miyake.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2011, ADB approvals including co-financing totaled $21,7 billion.