Poverty Reduction Cooperation Fund

TA 4638: Implementing the Regulatory and Supervisory Framework for Microfinance – Viet Nam
Financed by Poverty Reduction Cooperation Fund

Project Summary

Building on the work completed under TA No. 3741: Preparing the Framework for Microfinance Development, this TA will assist the Government to implement, monitor, and review the regulatory and supervisory framework embodied in Decree No. 28 (Prime Minister's Decree No. 28/2005/ND-CP on the Organization and Operation of Microfinance Institutions in Viet Nam issued on 9 March 2005). It aims to help develop a sound regulatory and supervisory environment for the microfinance sector that encourages market-oriented, financially self-sustainable microfinance institutions (MFI) that can contribute to poverty reduction and the country's economic growth.

The will undertake the following:

1. assist the State Bank of Viet Nam (SBV) and Ministry of Finance (MOF) to prepare the various legal documents required by Decree No. 28 and to revise supervisory manuals and procedures to be consistent with the decree;
2. conduct participatory workshops with key stakeholders, including mass organizations and international development agencies, to seek their views on TA activities and draft outputs to disseminate knowledge on final outputs;
3. organize smaller roundtable discussions with key stakeholders as needed;
4. sponsor SBV branch staff and other local officials to two study tours;
5. train SBV staff to implement the new framework; and
6. prepare a framework for monitoring sector development with a view to future improvements to the policy and legal framework that will promote further development of microfinance.

• TA Report