The key thrust of ADB assistance is to support the development of a market-oriented formal microfinance sector consisting of diversified financial institutions including commercial banks, financial cooperatives and microfinance institutions (MFIs), among others, that can provide a broad range of safe and affordable quality financial services to poor and low-income households and their microenterprises in a sustainable basis. ADB assistance focuses on (i) creating a policy environment conducive to microfinance, (ii) developing financial infrastructure, (iii) building viable institutions, and (iv) supporting pro-poor innovations.
|Project Name||Microfinance Sector Development Program|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Governance and capacity development
|Sector / Subsector||
Finance / Inclusive finance
|Gender Equity and Mainstreaming||No gender elements|
|Project Rationale and Linkage to Country/Regional Strategy||The key thrust of ADB assistance is to support the development of a market-oriented formal microfinance sector consisting of diversified financial institutions including commercial banks, financial cooperatives and microfinance institutions (MFIs), among others, that can provide a broad range of safe and affordable quality financial services to poor and low-income households and their microenterprises in a sustainable basis. ADB assistance focuses on (i) creating a policy environment conducive to microfinance, (ii) developing financial infrastructure, (iii) building viable institutions, and (iv) supporting pro-poor innovations.|
|Impact||A viable, market-based microfinance sector with diversified participation of financial institutions.|
|Description of Outcome||The PPTA will be implemented in two parts. Part I will carry out a sector assessment and prepare a sector development strategy. If the Government accepts the recommendations, adopts the strategy and seeks a loan, then Part II will commence to design a loan. Otherwise, the PPTA will close at the end of Part I.|
|Progress Toward Outcome|
|Description of Project Outputs||
A Draft Microfinance Sector Assessment and Key Elements to the National Microfinance Sector Development Strategy have been prepared by the consultant team, and is currently being reviewed by the Government and ADB for finalization.
The PPTA final outputs will be (i) a report of sector assessment; (ii) a draft national sector strategy; (iii) a roadmap of ADB sector assistance program; and (iv) a proposed design of an ensuing loan. The PPTA will be implemented over 12 months from February 2010 - February 2011. Items (i) and (ii) will be done in Q1-early Q2, 2010, followed by item (iii) and then (iv).
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Several consultation missions were conducted in 2010 which helped in the formulation of the proposed MSDP loan: i.e. inception mission in April, consultation mission in August, review mission in November in April 2010. A PPTA workshop was also held in August 2010.|
|During Project Implementation||The team of consultants assisted in the formulation of policy actions for the proposed MSDP loan, after detailed discussions wih the Govt.|
The PPTA will conduct a sector assessment of binding constraints to sector development. It will examine existing sector development policies, legal environment, regulatory and supervisory frameworks, institutional capacity (SBV, VBARD, VBSP, PCFs, MFIs, and NGO microfinance programs), and supportive infrastructures. It will also analyze the sector performance outcomes focusing on service provision quality, outreach, prices, efficiency, and sustainability in connection to the existing policy environment and institutional infrastructure. Based on the sector assessment, the PPTA will prepare a draft national sector development strategy to promote a viable market-based microfinance sector in Viet Nam and a sector roadmap of ADB operations to address short-, meium- and long-term plicy and institutional development priorities. The ensuing loan will be designed as the first operation of ADB sector roadmap.
The PPTA will require 11.5 person-months of international consultant services and 10 person-months of national consultant services, as follows:(i) International Microfinance Sector Development Specialist/Team Leader, 6 person months; (ii) International Financial Institution Strengthening Specialist, 4 person months; (iii) International Microfinance Legal specilaist, 1.5 person months; (iv) National Microfinance Specialist, 6 person months; and (vi) National Banking Speclialist, 4 person months
|Responsible ADB Officer||Sasaki, Eiichi|
|Responsible ADB Department||Southeast Asia Department|
|Responsible ADB Division||Public Management, Financial Sector and Trade Division, SERD|
State Bank of Vietnam
Mr Nguyen Vinh Hung
International Cooperation Department, State Bank of Viet Nam, Hanoi
|Concept Clearance||19 Oct 2009|
|Fact Finding||18 Nov 2009 to 24 Nov 2009|
|Approval||21 Feb 2010|
|Last Review Mission||-|
|PDS Creation Date||26 Nov 2009|
|Last PDS Update||14 Jul 2011|
|Approval||Signing Date||Effectivity Date||Closing|
|21 Feb 2010||18 Mar 2010||18 Mar 2010||25 Feb 2011||30 Jun 2012||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|500,000.00||0.00||0.00||0.00||0.00||0.00||500,000.00||21 Feb 2010||370,627.08|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
|Title||Document Type||Document Date|
|Microfinance Sector Development Program: Microfinance Sector Assessment||Consultants' Reports||Nov 2010|
|Preparing the Microfinance Sector Development Program||Concept Papers||Feb 2010|
Safeguard Documents See also: Safeguards
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Evaluation Documents See also: Independent Evaluation
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