Micro-finances Make Up for 4% of Vietnam GDP: ADB
Outstanding micro-finances in Vietnam have accounted for 4% of the country’s gross domestic product, according to the Asian Development Bank (ADB).
ADB and Japan are helping Vietnam bring its unregulated micro-finance programs into the formal sector so that it can provide increased financial support for the poor.
In a statement released in early Oct from Manila, where the bank is headquartered, ADB announced that the Japan Fund for Poverty Reduction is extending a US$1.5 million grant to help the Vietnamese government formalize its microfinance sector.
Micro-finance is dominated by Government-subsidized programs led by the State-owned Vietnam Bank for Social Policies (VBSP) and Public Credit Funds. However, they have struggled to meet the financial needs of the poor and offer limited services.
Vietnam’s GDP is forecast to grow 5%-5.2% this year, compared to 6.3% in 2008. (saigontimes)
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