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Assessing the Operating Efficiency for the Vietnam Microfinance Institutions and Implication for the Transmission

Author

Listed:
  • Pham Hong Linh

    (Banking faculty, Banking Academy of Vietnam, Hanoi, Vietnam)

  • Nguyen Thi Thu Trang

    (Banking faculty, Banking Academy of Vietnam, Hanoi, Vietnam)

Abstract

This paper investigates the operating efficiency of Vietnam microfinance institutions (MFIs) in formal and informal sectors during the period from 2010 to 2015 through the operating self-sufficiency ratio, return on asset ratio and return on equity ratio. The results show that the ratios of formal MFIs were higher than these of informal MFIs. Then authors recommend that the informal MFIs in Vietnam should concentrate on operation management rather than transforming to formal MFIs by all means.

Suggested Citation

  • Pham Hong Linh & Nguyen Thi Thu Trang, 2017. "Assessing the Operating Efficiency for the Vietnam Microfinance Institutions and Implication for the Transmission," Review of Business and Economics Studies, CyberLeninka;Федеральное государственное образовательное бюджетное учреждение высшего профессионального образования «Финансовый университет при Правительстве Российской Федерации» (Финансовый университет), issue 1, pages 54-59.
    • Handle: RePEc:scn:031730:17011628
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