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2012 has been a year of significant achievements for VMFWG, with a focus on building a professional and sustainable microfinance industry in Vietnam.
Our accomplishments included providing quality services based on member’s needs, with 90% of members happy with VMFWG’s services in 2012. The number of VMFWG members increased quickly from 67 to 84 during the year, ensuring we continue to be a strong representative network. We maintained our strong commitment to improve sustainable operations, with financial contribution to 10% of operational cost in 2012.
Through targeted training, we developed the capacity of 149 participants from MFIs, State Bank of Vietnam, Banking Academy, and other related organizations. The Microfinance National Bulletin No 18 published. And for the first time, we were able to develop and publish a Microfinance Industry Profile in Vietnam with participation from 34 MFIs, providing information about MFIs and increasing opportunities for a cooperation and connection between MFIs and donors/ investors.
The second MFI has a license in 2012. Vietnam is one of very few countries with regulation on microfinance together with a formal financial system mentioned in Credit law in 2010. 90% of comments from VMFWG’s members and partners on the draft circular guiding financial policy for microfinance operation in Vietnam were accepted by the Ministry of Finance. Finally, we finished the year on a high note, hosting the Vietnam-Citi Micro Entrepreneurship Awards in December 2012, honoring 53 micro entrepreneurs, 15 credit officers and 10 MFIs for outstanding achievements in microfinance. We also faced many challenges in supporting sustainable and professional microfinance development in Vietnam, especially with existing legal regulations on microfinance interest rates and tax, which will continue to be a big issue for MFIs in the coming year. The VMFWG is not yet fulfilling its advocacy role and needs to develop a stronger voice to government agencies and policy makers in Vietnam. In addition, the VMFWG needs to create a higher-level legal status as an Association on Microfinance supported by The State Bank of Vietnam.
Social performance and monitoring has not been paid enough attention from MFIs as currently only 7 MFIs publish their performance report in MIX social performance reporting standards. We wish to improve these issues in the coming year
To see full version of VMFWG Annual Report 2012, please click here