Development of Microfinance Organisations in Vietnam
Main Article Content
Abstract
The aim of this paper is to examine the development of microfinance in Vietnam from the early 1980s. This provides a particularly interesting case study in view of the large-scale changes that have taken place in the economy over the period, which has experienced the transition from a Central Economic Planning System towards a ‘socialist-oriented market economy’, with increased integration in the world economy. Starting from a framework, or taxonomy, of microfinance organisations, the paper explores how the two main objectives of microfinance organisations - of meeting the economic needs of borrowers and being sustainable - have eventually been met using a diversity of organisational forms.
Keywords:
Microfinance; Microfinance organisations; Vietnam
References
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Ahmad, Mokbul Morshed. (2002). Who cares? The personal and professional problems of NGO fieldworkers in Bangladesh. Development in Practice, 12(2), 177-191.
Altman, Morris. (2011). Is there a Cooperative Advantage? Experimental Evidence on Economic and Social Variables as Determinants of Demand. New Zealand Institute for the Study of Competition and Regulation (Powerpoint).
An, Nguyen Thanh. (2004). Notes from Preliminiary Review on Microfinance for Poverty reduction in Vietnam.
Retrieved from http://www.microfinancegateway.org/sites/default/files/mfg-en-paper-notes-from-preliminary-review-on-micro-finance-for-poverty-reduction-in-vietnam-2004.pdf
Arun, Thankom. (2005). Regulating for development: the case of microfinance. The Quarterly Review of Economics and Finance, 45(2–3), 346-357.
Retrieved from http://siteresources.worldbank.org/INTSOCIALCAPITAL/Resources/Social-Capital-Initiative-Working-Paper-Series/SCI-WPS-08.pdf
Banerjee, Abhijit V., Besley, Timothy, & Guinnane, Timothy W. (1994). The Neighbor's Keeper: The Design of a Credit Cooperative with Theory and a Test. The Quarterly Journal of Economics, 109(2), 491-515.
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Boot, Arnoud W. A. (2000). Relationship Banking: What Do We Know? Journal of Financial Intermediation, 9(1), 7-25.
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Chaves, Rodrigo A., & Gonzalez-Vega, Claudio. (1996). The design of successful rural financial intermediaries: Evidence from Indonesia. World Development, 24(1), 65-78.
Copestake, James. (2007). Mainstreaming Microfinance: Social Performance Management or Mission Drift? World Development, 35(10), 1721-1738.
Creedy, John.& Hoang, Hien (2018a) Types of microfinance organisations, a taxonomy. Journal of Third Sector Review, Special Issue 2018 (forthcoming)
Creedy, J. & Hoang, H. (2018b) Microfinance and Joint Liability Lending. In S. Boubaker, D. Cumming & D. Nguyen (eds), Handbook of Finance and Sustainability: 241–267. Cheltenham: Edward Elgar.
Cuevas, Carlos E. (1996). Enabling environment and microfinance institutions: Lessons from Latin America. Journal of International Development, 8(2), 195-209.
Dixon, Rob, Ritchie, John, & Siwale, Juliana. (2007). Loan officers and loan ‘delinquency’ in Microfinance: A Zambian case. Accounting Forum, 31, 47-71.
Duong, Pham Bao, & Izumida, Yoichi. (2002). Rural Development Finance in Vietnam: A Microeconometric Analysis of Household Surveys. World Development, 30(2), 319-335.
Epstein, Marc J., & Yuthas, Kristi. (2010). Microfinance in culture of non-repayment. Journal of Developmental Entrepreneurship, 15(1), 35-54.
Fukui, Ryu, & Llanto, Gilberto M. (2003). Rural Finance and Microfinance Development in Transition Countries in Southeast and East Asia. Philippine Institute for Development Studies-Disscusion Paper Series.
Retrieved from http://dirp3.pids.gov.ph/ris/dps/pidsdps0312.pdf
Furubotn, Eirik G., & Richter, Rudolf. (2005). Institutions and economic theory: The contribution of the new institutional economics: The University of Michigan Press.
Goetz, Anne Marie. (2001). Women Development Workers: Implementing Rural Credit Programmes in Bangladesh New Delhi: Sage.
Ghatak, Maitreesh, & Guinnane, Timothy W. (1999). The economics of lending with joint liability: theory and practice. Journal of Development Economics, 60(1), 195-228. Retrieved from https://kb.osu.edu/dspace/handle/1811/66541
Hansmann, Henry. (1996). The Ownership of Enterprise. Cambridge, England.
Hollis, Aidan, & Sweetman, Arthur. (1998). Microcredit: What can we learn from the past? World Development, 26(10), 1875-1891.
Hung, Chikan Richard. (2006). Rules and Actions: Determinants of Peer Group and Staff Actions in Group-Based Microcredit Programs in the United State. Economic Development Quartely, 20, 75-96.
Kabosi, Joseph P., & Townsend, Robert M. (2005). Policies and impact: An analysis of village-level institutions. Journal of the European Economic Association, 3(1), 1 - 50.
Ledgerwood, Joanna. (2000). Microfinance handbook: An Institutional and Financial Perspective: The International Bank for Reconstruction and Development/THE WORLD BANK.
Online version https://openknowledge.worldbank.org/bitstream/handle/10986/12383/18771.pdf
Litvack, Jennie I., & Rondinelli, Dennis A. (1999). Market reform in Vietnam: Building institutions for development. Quorum.
McCarty, Adam. (2001). Microfinance in Vietnam: A Survey of Schemes and Issues. Survey commissioned by the British Department of International Development (DFID) and the State bank of Vietnam, accessed on 14th Jannuary 2013. Retrieved from http://huongduongtxd.com/schemesandissues.pdf.
Milgrom, Paul, & Roberts, John. (1992). Economics, organisations, and management. Prentice-Hall, Inc.
Mosley, Paul. (2001). Microfinance and Poverty in Bolivia. Journal of Development Studies, 37(4), 101-132.
Mosley, Paul, & Hulme, David. (1998). Microenterprise finance: Is there a conflict between growth and poverty alleviation? World Development, 26(5), 783-790.
Putzeys, Ruth. (2002). Microfinance Vietnam: Three case studies. University of Ghent, Belgium. Retrieved from http://www.microfinancegateway.org/sites/default/files/mfg-en-case-study-micro-finance-in-vietnam-three-case-studies-may-2002.pdf
Seibel, Hans Dieter, & Thac, Nguyen Tam. (2012). Growth and resilience of credit cooperatives in Vietnam. Cooperative Finance in Developing Economies, 2012 International Year of Cooperatives.
Stiglitz, Joseph E. (1990). Peer Monitoring and Credit Markets. The World Bank Economic Review, 4(3), 351-366.
Stiglitz, Joseph E., & Weiss, Andrew. (1981). Credit Rationing in Market with Imperfect Information. The American Economic Review, 71(3), 393-410.
Teumer, Joerg. (2011). Funding the expansion of microfinance services-some experiences from TYM. Vietnam Microfinance Working Group Bulletin, 17.
Thanh, Nguyen Xuan. (2003). Vietnam: The way to interest liberalization, Retrieved from www.fept.edu.vn/attachment.aspx?ID=3578
United States. (2011). Promoting Sustainable, Market-Based Microfinance: Viet Nam Case Study and Lessons Learned for APEC Economies. Workshop on Microfinance Best Practices Ha Noi, Viet Nam. Asia Economic Cooperation.
WorldBank. (2007). Vietnam: Developing a Comprehensive Strategy to Expand Access for the poor to Microfinance Services. In W. Bank (Ed.), Promomoting Outreach, Efficiency and Sustainability (Vol. Volume I: The Micrifinance Landscape in Vietnam). World Bank.
Ahmad, Mokbul Morshed. (2002). Who cares? The personal and professional problems of NGO fieldworkers in Bangladesh. Development in Practice, 12(2), 177-191.
Altman, Morris. (2011). Is there a Cooperative Advantage? Experimental Evidence on Economic and Social Variables as Determinants of Demand. New Zealand Institute for the Study of Competition and Regulation (Powerpoint).
An, Nguyen Thanh. (2004). Notes from Preliminiary Review on Microfinance for Poverty reduction in Vietnam.
Retrieved from http://www.microfinancegateway.org/sites/default/files/mfg-en-paper-notes-from-preliminary-review-on-micro-finance-for-poverty-reduction-in-vietnam-2004.pdf
Arun, Thankom. (2005). Regulating for development: the case of microfinance. The Quarterly Review of Economics and Finance, 45(2–3), 346-357.
Retrieved from http://siteresources.worldbank.org/INTSOCIALCAPITAL/Resources/Social-Capital-Initiative-Working-Paper-Series/SCI-WPS-08.pdf
Banerjee, Abhijit V., Besley, Timothy, & Guinnane, Timothy W. (1994). The Neighbor's Keeper: The Design of a Credit Cooperative with Theory and a Test. The Quarterly Journal of Economics, 109(2), 491-515.
Berger, Marguerite. (1989). Giving women credit: The strengths and limitations of credit as a tool for alleviating poverty. World Development, 17(7), 1017-1032.
Boot, Arnoud W. A. (2000). Relationship Banking: What Do We Know? Journal of Financial Intermediation, 9(1), 7-25.
BWTP. (2008). Vietnam Industry Assessment: A report on the Vietnamese Microfinacne Sector. Banking with the poor network. Retrieved from http://dev.bwtp.org/wp-content/knowledgecentre/books/BWTP-Corporate-History.pdf
CGAP. (2004). Building inclusive financial systems. Donor guidelines on good practice in microfinance: Washington, DC: Consultative Group to Assist the Poorest. Retrieved from http://info.worldbank.org/etools/docs/library/128742/Building%20Inclusive%20Financial%20Systems%20Donor%20Guidelines.pdf
Chaves, Rodrigo A., & Gonzalez-Vega, Claudio. (1996). The design of successful rural financial intermediaries: Evidence from Indonesia. World Development, 24(1), 65-78.
Copestake, James. (2007). Mainstreaming Microfinance: Social Performance Management or Mission Drift? World Development, 35(10), 1721-1738.
Creedy, John.& Hoang, Hien (2018a) Types of microfinance organisations, a taxonomy. Journal of Third Sector Review, Special Issue 2018 (forthcoming)
Creedy, J. & Hoang, H. (2018b) Microfinance and Joint Liability Lending. In S. Boubaker, D. Cumming & D. Nguyen (eds), Handbook of Finance and Sustainability: 241–267. Cheltenham: Edward Elgar.
Cuevas, Carlos E. (1996). Enabling environment and microfinance institutions: Lessons from Latin America. Journal of International Development, 8(2), 195-209.
Dixon, Rob, Ritchie, John, & Siwale, Juliana. (2007). Loan officers and loan ‘delinquency’ in Microfinance: A Zambian case. Accounting Forum, 31, 47-71.
Duong, Pham Bao, & Izumida, Yoichi. (2002). Rural Development Finance in Vietnam: A Microeconometric Analysis of Household Surveys. World Development, 30(2), 319-335.
Epstein, Marc J., & Yuthas, Kristi. (2010). Microfinance in culture of non-repayment. Journal of Developmental Entrepreneurship, 15(1), 35-54.
Fukui, Ryu, & Llanto, Gilberto M. (2003). Rural Finance and Microfinance Development in Transition Countries in Southeast and East Asia. Philippine Institute for Development Studies-Disscusion Paper Series.
Retrieved from http://dirp3.pids.gov.ph/ris/dps/pidsdps0312.pdf
Furubotn, Eirik G., & Richter, Rudolf. (2005). Institutions and economic theory: The contribution of the new institutional economics: The University of Michigan Press.
Goetz, Anne Marie. (2001). Women Development Workers: Implementing Rural Credit Programmes in Bangladesh New Delhi: Sage.
Ghatak, Maitreesh, & Guinnane, Timothy W. (1999). The economics of lending with joint liability: theory and practice. Journal of Development Economics, 60(1), 195-228. Retrieved from https://kb.osu.edu/dspace/handle/1811/66541
Hansmann, Henry. (1996). The Ownership of Enterprise. Cambridge, England.
Hollis, Aidan, & Sweetman, Arthur. (1998). Microcredit: What can we learn from the past? World Development, 26(10), 1875-1891.
Hung, Chikan Richard. (2006). Rules and Actions: Determinants of Peer Group and Staff Actions in Group-Based Microcredit Programs in the United State. Economic Development Quartely, 20, 75-96.
Kabosi, Joseph P., & Townsend, Robert M. (2005). Policies and impact: An analysis of village-level institutions. Journal of the European Economic Association, 3(1), 1 - 50.
Ledgerwood, Joanna. (2000). Microfinance handbook: An Institutional and Financial Perspective: The International Bank for Reconstruction and Development/THE WORLD BANK.
Online version https://openknowledge.worldbank.org/bitstream/handle/10986/12383/18771.pdf
Litvack, Jennie I., & Rondinelli, Dennis A. (1999). Market reform in Vietnam: Building institutions for development. Quorum.
McCarty, Adam. (2001). Microfinance in Vietnam: A Survey of Schemes and Issues. Survey commissioned by the British Department of International Development (DFID) and the State bank of Vietnam, accessed on 14th Jannuary 2013. Retrieved from http://huongduongtxd.com/schemesandissues.pdf.
Milgrom, Paul, & Roberts, John. (1992). Economics, organisations, and management. Prentice-Hall, Inc.
Mosley, Paul. (2001). Microfinance and Poverty in Bolivia. Journal of Development Studies, 37(4), 101-132.
Mosley, Paul, & Hulme, David. (1998). Microenterprise finance: Is there a conflict between growth and poverty alleviation? World Development, 26(5), 783-790.
Putzeys, Ruth. (2002). Microfinance Vietnam: Three case studies. University of Ghent, Belgium. Retrieved from http://www.microfinancegateway.org/sites/default/files/mfg-en-case-study-micro-finance-in-vietnam-three-case-studies-may-2002.pdf
Seibel, Hans Dieter, & Thac, Nguyen Tam. (2012). Growth and resilience of credit cooperatives in Vietnam. Cooperative Finance in Developing Economies, 2012 International Year of Cooperatives.
Stiglitz, Joseph E. (1990). Peer Monitoring and Credit Markets. The World Bank Economic Review, 4(3), 351-366.
Stiglitz, Joseph E., & Weiss, Andrew. (1981). Credit Rationing in Market with Imperfect Information. The American Economic Review, 71(3), 393-410.
Teumer, Joerg. (2011). Funding the expansion of microfinance services-some experiences from TYM. Vietnam Microfinance Working Group Bulletin, 17.
Thanh, Nguyen Xuan. (2003). Vietnam: The way to interest liberalization, Retrieved from www.fept.edu.vn/attachment.aspx?ID=3578
United States. (2011). Promoting Sustainable, Market-Based Microfinance: Viet Nam Case Study and Lessons Learned for APEC Economies. Workshop on Microfinance Best Practices Ha Noi, Viet Nam. Asia Economic Cooperation.
WorldBank. (2007). Vietnam: Developing a Comprehensive Strategy to Expand Access for the poor to Microfinance Services. In W. Bank (Ed.), Promomoting Outreach, Efficiency and Sustainability (Vol. Volume I: The Micrifinance Landscape in Vietnam). World Bank.