Microfinance in Vietnam: Three Case Studies

This paper evaluates the following microfinance related projects in Vietnam:

• The Vietnamese - Belgian Credit Project or the VBCP project;
• Participatory Watershed Management in Hoanh Bo District, Quang Ninh Province or the FAO project;
• Development of Dairy Support Activities in Southern Vietnam project, or the Dairy project.

These projects have been funded by the Belgian Government - while the VBCP and the dairy projects have been implemented by the Belgian Technical Cooperation (BTC), the FAO project has been implemented by the Food and Agriculture Organization (FAO). The paper discusses the following aspects of these projects:

• Objectives, design and approach;
• Product features such as interest rates, peer pressure, savings and non-financial services;
• Legal environment and relations with the formal financial sector;
• Management information and control systems.

Finally the author concludes that while it is possible to design good microfinance schemes in Vietnam at present, their future viability depends on:

• Evolution of a legal framework for the microfinance organizations;
• Development of the financial system in the country.