Viet Nam: Formalizing Microfinance Institutions

Sovereign Project | 42492-012

Summary

The project supports the ADB?s CSP 2007 ? 2010 in assisting the Government expand rural and microfinance services in rural areas focusing on developing formal licensed and supervised MFIs that operate on market principles.

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Project Name Formalizing Microfinance Institutions
Project Number 42492-012
Country Viet Nam
Project Status Closed
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 9140-VIE: Formalizing Microfinance Institutions
Japan Fund for Poverty Reduction US$ 1.50 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Finance - Finance sector development
Gender Equity and Mainstreaming
Description
Project Rationale and Linkage to Country/Regional Strategy The project supports the ADB?s CSP 2007 ? 2010 in assisting the Government expand rural and microfinance services in rural areas focusing on developing formal licensed and supervised MFIs that operate on market principles.
Impact The impact of the JFPR will be increased access to sustainable, reliable and affordable institutional financial services for the poor, especially in rural areas.
Project Outcome
Description of Outcome The outcome of the JFPR will be increased number of formal MFIs that are registered, licensed, and regulated under SBV regulations and supervisions and operate following international microfinance best practices. It is expected that from two to five unregulated microfinance programs will be transformed to formal MFIs, loans and savings products will be more diversified, and the total number of poor clients served by these MFIs will increase by at least 10,000.
Progress Toward Outcome Five participating MFIs have been approved as eligible to access SMF grant. SMF will be provided to help the participating MFIs implement the transformation, improve portfolio quality and services, and strengthen operational capacity.
Implementation Progress
Description of Project Outputs

1. Institutional profile and training needs of existing microfinance programs in transition to formal MFIs.

2. Relevant Government officials and microfinance stakeholders, SBV microfinance supervision staff, and participating MFIs have the capacity to appreciate, supervise, and conduct microfinance operations, respectively.

3. Successful pilot transformation of unregulated microfinance programs into regulated MFIs.

4. Effective project management, monitoring, and evaluation.

Status of Implementation Progress (Outputs, Activities, and Issues)

Under the 4 components A to D, the Project has delivered outputs as originally planned and has completed all key activities. Component A has completed an institutional review of MFIs, and built a database on 29 MFIs for formalization, which is being updated on a quarterly basis; Component B has conducted (i) microfinance awareness-raising workshops (12) for various stakeholders, (ii) supervision trainings for SBV, and (iii) technical trainings for MFIs; Component C on the transformation of MFIs has infused supplementary matching funds (SMF) to 5 MFIs preparing for formalization; and Component D, the PMU has ably coordinated project activities and prepared quarterly reports and reports on training delivery for submission to ADB. These activities highlight the successful implementation of the project. In addition, an impact assessment has been conducted under the Project to assess MFI formalization impact on client and non-client households.

The auditor's report has been submitted to ADB on 6 August 2013. Final liquidation of the imprest account is in progress.

Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services The proejct will provide a total of 27.5 person-months of international and national consulting services, comprising (i) an international MFI development specialist/team leader (6.5 person months); an international microfinance training coordinator (4 person-months); (iii) an international project impact evaluation specialist (2 person months); (iv) a national microfinance specialist (9 person-months); and (v) a national microfinance training specialist (6 person-months). To get the data for the project impact evaluation, the project will contract out the baseline survey and the follow-up survey to a local economic/statistic institution. To ensure timely recruitment and quality consultant performance, consultants will be recruited by ADB using the individual consultant selection (ICS) method in accordance with ADB's Guidelines on the Use of Consultants by ADB and its borrowers.
Procurement All procurements under the JFPR grant will be conducted in accordance with ADB's Procurement Guideliens (2007, as amended from time to time). Shopping for items of $10,000 or below will use the direct purchase method without seeking three (3) quotations. Upon completion of the project, equipment procured under the project will be turned over to the EA according to ADB's common practice.
Responsible ADB Officer Eiichi Sasaki
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SERD
Executing Agencies
State Bank of VietnamADB@GOSBV.ORG47-49 Ly Thai To Street
Ha Noi, Viet Nam
Timetable
Concept Clearance 16 Sep 2008
Fact Finding 22 Sep 2008 to 26 Sep 2008
MRM -
Approval 05 Oct 2009
Last Review Mission -
PDS Creation Date 08 Dec 2008
Last PDS Update 26 Sep 2013

Grant 9140-VIE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
05 Oct 2009 19 Oct 2009 19 Oct 2009 19 Oct 2011 30 Jun 2013 23 Dec 2013
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 1.50 Cumulative Contract Awards
ADB 0.00 05 Oct 2009 0.00 1.30 87%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 1.50 05 Oct 2009 0.00 1.30 87%
Title Document Type Document Date
Formalizing Microfinance Institutions: Basic Course in Risk Management Documents Produced Under Grant/Loans/TA Mar 2012
Formalizing Microfinance Institutions: Basic Course in Human Resource Management Documents Produced Under Grant/Loans/TA Mar 2012
Formalizing Microfinance Institutions: Basic Course in Introduction to Governance Documents Produced Under Grant/Loans/TA Mar 2012
Formalizing Microfinance Institutions: Basic Course in Financial Accounting Documents Produced Under Grant/Loans/TA Mar 2012
Formalizing Microfinance Institutions: Advance Course in Business Planning: Planning for Transformation Documents Produced Under Grant/Loans/TA Mar 2012
Formalizing Microfinance Institutions: Advance Course in Business Planning Documents Produced Under Grant/Loans/TA Mar 2012
Formalizing Microfinance Institutions: Basic Course in Performance Indicators Documents Produced Under Grant/Loans/TA Mar 2012
Formalizing Microfinance Institutions: Foreword and Overall Documents Produced Under Grant/Loans/TA Mar 2012
Formalizing Microfinance Institutions: Basic Course in Introduction to Financial Management Documents Produced Under Grant/Loans/TA Mar 2012
Formalizing Microfinance Institutions: Basic Course in Financial and Social Performance Analysis Documents Produced Under Grant/Loans/TA Mar 2012
Formalizing Microfinance Institutions: Basic Course in Introduction to Strategic and Business Planning Documents Produced Under Grant/Loans/TA Mar 2012
Formalizing Microfinance Institutions: Basic Course in Delinquency Management Documents Produced Under Grant/Loans/TA Mar 2012
Formalizing Microfinance Institutions: Advance Course in Financial Management Documents Produced Under Grant/Loans/TA Mar 2012
Formalizing Microfinance Institutions Grant Implementation Manuals Jan 2010
Formalizing Microfinance Institutions Grant Assistance Reports Sep 2009

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


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