Microfinance is a young peculiar movement aimed at both economic and social objectives.
Microfinance was established on the basis of providing the poor with loan capitals without requiring mortgaged assets with the hope that the poor can have access to this service to improve their conditions. Thus, microfinance is faced with several challenges mainly due to lack of knowledge and trust .
In 1990s, microfinance was introduced in Vietnam through different channels; different purposes of usage, approach methods, partners/practitioners with different knowledge, technology and management capability.
The only legal flow for microfinance service implementation during the past two decades has been Vietnam’s administrative system (the authorities, functional agencies, socio-political organizations but few VGO)
- In co-operation with Vietnam Television produce programs like Grameen Integration & Vietnam
4. Attracting leaders to participate in the microfinance process
- Invited former Prime
Minister Vo Van Kiet to
visit a staff training
- Organized a meeting between Professor, Dr. Muh. Ynut and former Prime Minister Vo Van Kiet - Invited Vice Prime Minister Phan Van Khai to visit GB - Reported to senior leaders of the National Assembly, Vice Prime Minister Nguyen Khanh and ministers of related ministries - Invited senior leaders to visit offices
4. Attract leaders to participate in microfinance process
Invited local leaders at commune or province level to take
- Microfinance organizations receive more attention from the local authorities (for example, in Da Nang, Thanh Hoa CQ promotes the establishment of social funds while in Ha Tinh and Quang Ninh there are more open policies on CQ’s activities on Microfinance)
- Microfinance activists have more trust in their future and thus actively reinforce their resources to transform into Microfinance organizations.
Challenges and solutions (1) Solutions Workshop organization, field visits, individual persuasion, inviting to national and international workshops, international experts’ opinions Big challenges Influential people’s knowledge on Microfinance at different levels leads to different viewpoints on policy issuance
Challenges and solutions (2) Solutions All international organization (UNICEP, UNDP, UNFPA, FAO) together with INGOs and Vietnam partners co-organize a conference to give recommendations to the Government of Vietnam Challenges -The authority suggested one organization (VBP) be in charge of all capital (1995-1996)
Challenges and solutions (3) Actively and continually enhance MFOs 4- Instructing documents. Decrees fail to be issued in time Solutions Persistently persuade relevant authorities to revise the policies through results of international activities Challenges 3 - Current policies still conflict with the reality (law-regulated capital, safe proportion, staff standards, headquarter…)
Challenges and solutions (4) Seeking sponsors or sharing costs among organizations High costs for advocacy Solutions In-depth discussion, explaining or maintaining opinions when submitting to relevant agencies Challenges Loose connection between member organization and the network in advocacy activities