Viet Nam: Formalizing Microfinance Institutions
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.
Southeast Asia Department
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|Project Name||Formalizing Microfinance Institutions|
|Project Type / Modality of Assistance||Grant
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Governance and capacity development
Private sector development
|Sector / Subsector||
Finance / Finance sector development
|Gender Equity and Mainstreaming||No gender elements|
|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.|
|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.|
|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.
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|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 $10,000 or below will use the direct purchase method without seeking three (3) quotations. Upon completion of the project, equipment procured under the project will be turned over to the EA according to ADB's common practice.|
|Responsible ADB Officer||Sasaki, Eiichi|
|Responsible ADB Department||Southeast Asia Department|
|Responsible ADB Division||Public Management, Financial Sector and Trade Division, SERD|
State Bank of Vietnam
Mr. Le Minh Hung, Director General
47-49 Ly Thai To Street Hanoi Vietnam State Bank of Vietnam
47-49 Ly Thai To Street
|Concept Clearance||16 Sep 2008|
|Fact Finding||22 Sep 2008 to 26 Sep 2008|
|Approval||05 Oct 2009|
|Last Review Mission||-|
|PDS Creation Date||08 Dec 2008|
|Last PDS Update||26 Sep 2013|
|Approval||Signing Date||Effectivity Date||Closing|
|05 Oct 2009||19 Oct 2009||19 Oct 2009||19 Oct 2011||30 Jun 2013||23 Dec 2013|
|Financing Plan||Grant Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||1.50||Cumulative Contract Awards|
|ADB||0.00||07 Sep 2021||0.00||1.30||87%|
|Cofinancing||1.50||07 Sep 2021||0.00||1.30||87%|
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