HANOI – Asian Development Bank (ADB) and the Government of Viet Nam today signed an agreement for a US$40 million loan to support the Government’s policy reforms to improve the quality, accessibility, efficiency, and competitiveness of the country’s microfinance sector under the Microfinance Development Programme.
The signatories included the State Bank of Viet Nam Governor, Nguyen Van Binh, and ADB Country Director for Viet Nam, Tomoyuki Kimura.
Kimura said Viet Nam should address the need for more responsive, inclusive microfinance services to narrow the development gaps and improve the poor’s access to opportunities and social services.
In response to the Government’s commitment to developing a market-oriented microfinance sector, ADB has approved the first microfinance development programme with technical assistance grant for Viet Nam as a continuous support to a sustainable sector development. The programme is a pipeline project in the latest ADB’s Country Partnership Strategy with the Government of Viet Nam.
The Microfinance Development Programme will seek to integrate microfinance into the formal financial sector by nurturing emerging microfinance institutions to become formal financial institutions licensed by the State Bank of Viet Nam, and at the same time, encouraging reform and restructuring of microfinance-involved state financial institutions – the Viet Nam Bank for Social Polices and the Central People’s Credit Fund.
It also helps enhance operational and supervisory capacities of microfinance, and supports the development of financial infrastructure including a training institute, advocacy programmes, and a consumer protection scheme, as well as a credit information exchange system. – VNS
Harvey Koh, Ashish Karamchandani, Robert Katz
There is growing interest in the role of market-based solutions in addressing the problems of poverty, through inclusive businesses that tap into the potential of the global poor as customers and suppliers—the so-called ‘fortune at the Base of the Pyramid (BoP).’ Encouraged by the growth of microfinance, many promising new models are emerging. This has elicited a rush to the new field of ‘impact investing’—producing social or environmental good as well as financial return—with hundreds of funds set up in just a few years and billions of dollars waiting to be invested.
|Photo credit: Acumen Fund
Zulfiqar Ali farms four acres in the village of Dabri, Punjab province, irrigated by MicroDrip irrigation kits.
But many investors report that they are struggling to find good opportunities in which to invest for impact. Why is that? Will impact investors really be able to take new models for inclusive business
all the way from idea to scale?
Meanwhile, philanthropic and aid funders are asking how they should engage with these market-based solutions. How should they harness the full potential of this early experimentation? If impact capital is the key to scaling these solutions, what then is the role of philanthropy?
Download From Blueprint to Scale – Case for Philanthropy in Impact Investing – Full Report.
Download From Blueprint to Scale – Case for Philanthropy in Impact Investing – Executive Summary.
An educational and cheerfully illustrated public service infographic on waste, water and the future of toilets.
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Low-income markets present a prodigious opportunity for the world’s wealthiest companies — to seek their fortunes and bring prosperity to the aspiring poor.
Please download the full paper at The Fortune at the Bottom of the Pyramid written by C.K. Prahalad and Stuart L. Hart.