US$1,34 Million for Vietnam Legal Framework Improvement

A 1 million euro grant agreement (US$1,34 million) between the State Bank of Vietnam (SBV) and the French Development Agency (AFD) was recently signed in order to support SBV for the technical assistance project “Improvement of the legal framework and strengthening of the supervision and management ability of the microfinance sector in Vietnam”.

 

AFD’s objective in microfinance is to promote a financially and institutionally sustainable sector, in order to broaden the access to financial services for more Vietnamese. Through this project, AFD will contribute to support the Vietnamese government’s will to define and implement reforms dedicated to structuring the microfinance sector in Vietnam.

 

SBV is committed to improving its performance as a regulatory and supervisory entity for Microfinance Institutions (MFI). In this context, this project will enable the conduction of an analysis of the legal and regulatory environment of microfinance in Vietnam, and will provide capacity building to the SBV to regulate and supervise the sector (trainings to SBV executives and to concerned parties in the microfinance industry).

 

With this new financing agreement, the total cumulated net commitments of AFD for public official development assistance (ODA) in Vietnam will amount to about 1,070 billion euros.