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The nature of NGO microfinance in Vietnam and stakeholders� perceptions of effectiveness

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Abstract

The microfinance industry in Vietnam, particularly those sponsored by non-government organisations (NGOs), has experienced rapid expansion in recent years. While there have been anecdotal reports alluding to their contribution in alleviating poverty, a systematic analysis of this issue has been lacking. In a bid to help address this shortcoming, this paper reports on data that was obtained during a survey and interview process that incorporated various stakeholders including financial donors, NGO-sponsored microfinance institutions (NMPs), village leaders and NMP members and non-members. Firstly, the nature of NMPs is described - their objectives, target groups and the financial products they offer. Secondly, perceptions of NMPs effectiveness are discussed from the standpoint of various stakeholders. NMPs are found to be at a critical juncture. While their activities are widely perceived to contribute to poverty alleviation, their future viability is clouded by donor requirements that they become financially self-sufficient. At the same time, certain government policies make achieving this goal very difficult.

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  • James Laurenceson & Hong Son Nghiem, "undated". "The nature of NGO microfinance in Vietnam and stakeholders� perceptions of effectiveness," EAERG Discussion Paper Series 0305, School of Economics, University of Queensland, Australia.
  • Handle: RePEc:qld:uqeaer:03
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    File URL: http://www.uq.edu.au/economics/eaerg/dp/0305.pdf
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    Cited by:

    1. Ahmad, Usman, 2011. "Efficiency Analysis of Micro-finance Institutions in Pakistan," MPRA Paper 34215, University Library of Munich, Germany.
    2. repec:ilo:ilowps:386000 is not listed on IDEAS
    3. Thi Lan, Le. & Tran, Nhu-An., 2005. "Towards a viable microfinance sector in Viet Nam : issues and challenges," ILO Working Papers 993860003402676, International Labour Organization.

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