Vietnam: Decree on Organization and Operation of Microfinance Institutions in Vietnam

This document articulates about a government decree on the organization and operation aspects of microfinance institutions (MFIs) in Vietnam. The document is divided into chapters and provides information on:

• The general provisions of the decree, outlining the scope of regulation and the objects of application;
• Conditions under which licenses to MFIs can be issued, cancelled and revoked and the kind of procedures any MFI has to follow for the same;
• The kind of organizational structure and management an MFI should have for carrying out its administrative functions and maintaining its control over opening and stopping of operations of different defaulting units;
• The types of capital mobilization and credit activities any MFI can engage itself in;
• The accounting and reporting mechanism;
• The special control and powers that the State Bank of Vietnam has in cases of bankruptcy, dissolution and liquidation of any MFI;
• Penalties and sanctions that are likely to be invoked in case of violation of this regulation.

The document also states that the Governor of the State Bank of Vietnam, as well as all the ministers, heads of ministerial agencies and other agencies of the Government ensure the proper implementation of this decree in Vietnam so that large sections of the society can avail microfinance products and services without much difficulty.