Viet Nam: Microfinance Development Program (Subprograms 1 and 2)
The Microfinance Development Program was formulated to support government efforts in improving the overall quality and capacity of microfinance, focusing on (i) an improved policy and regulatory environment, (ii) increased operational and supervisory capacities, and (iii) financial infrastructure development in line with the national Microfinance Development Strategy. The program consisted of two subprograms to address existing constraints in the sector that included (i) lack of supportive policy and regulatory environment, (ii) inadequate regulatory and supervisory capacity, (iii) weak microfinance institutions, and (iv) inefficient financial infrastructure. Subprogram 1 focused on policy and regulatory reforms, supervisory capacity building, operational and institutional development, and financial infrastructure development. Subprogram 2 followed through with the achievements of subprogram 1 and continued to support the government’s comprehensive reforms—covering the same broad areas as subprogram 1—to achieve self-sustaining microfinance operations leading to improved financial services, greater financial inclusion, and deepened finance sector.
This report validates the completion report’s assessment of the program. IED overall assessment: Successful.