NGO Microfinance in Vietnam: Stakeholders' Perspective on Effectiveness

Hong Son Nghiem,
James Laurenceson
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The microfinance industry in Vietnam, particularly those sponsored by non-government organisations (NGOs), has experienced rapid expansion in recent years. Yet in spite of this growth, an analysis of their effectiveness has been lacking. In a bid to help address this shortcoming, this paper reports on a subset of data that was obtained during a survey and interview process that incorporated various stakeholders including financial donors, NGO-sponsored microfinance institutions (NMPs), village leaders and NMP members and non-members. Perceptions of NMPs effectiveness are discussed from the standpoint of various stakeholders. NMPs are found to be at a critical juncture. While their activities are widely perceived to contribute to poverty alleviation, their future viability is clouded by donor requirements that they become financially self-sufficient and at the same time certain government policies are making achieving this goal difficult.

Keywords: Microfinance, Vietnam, NGOs, Effectiveness, viability
Stream: Economic Sustainability
Presentation Type: Virtual Presentation in English
Paper: NGO Microfinance in Vietnam

Hong Son Nghiem

PhD Candidate, School fo Economics, The University of Queensland

Mr Nghiem is a PhD Candidate at School of Economics, the University of Queensland, Australia. He obtained a Bachelor Degree on Agricultural Economics from Thai Nguyen University, Vietnam; then a Master of Economics Degree from the University of New England, Australia. He has conducted substaintial empirical research and consulting work in development sector in Vietnam in the last five years with NGOs, donors and government agencies. He was employed as an economist at the Industry Department of Lao Cai Province, then deputy director of the Rural Development Service Centre, a Vietnamese NGO in Hanoi, Vietnam. His current research is on the efficiency and effectiveness of microfinance industry in Vietnam.

James Laurenceson

Lecturer, School of Economics, The University of Queensland

Dr Laurenceson specialises in the role of finance in economic development, particularly in the context of Asian economies such as China. Also interested in the economics of higher education. He is the Vice-president of the Economics Society of Australia (Queensland Branch) and is on the Management Committee of the Association for Chinese Economic Studies (Australia). Dr Laurenceson received Teaching Awards at School of Economics, the University of Queensland in the last three academic years.

Ref: S06P0384