An agreement to this effect was signed in Hanoi on December 13 by representatives of the State Bank of Vietnam (SBV), the French Development Agency (Agence Française de Developpement, AFD), and the French embassy in Vietnam.

The fund will be used to complete the legal framework for micro-finance and increase the management and inspection capacity of Vietnam’s micro-finance sector. The three-year project will start next year under the management of the SBV.

The Vietnamese Government has approved a project to develop the micro-finance system until 2020, with a focus on sustainability, raising living standards of low-income earners, assisting small-scale businesses, ensuring social security, and reducing poverty.

To achieve this, SBV Deputy Governor Le Minh Huong says it is essential to build a synchronous legal environment in line with the development of micro-finance in Vietnam, and increase the capacity of State management agencies.

The AFD Country Director in Vietnam, Jean-Marc Gravellini, said that his agency has provided nearly 400 million euro to develop micro-finance projects in 25 countries. The successful implementation of the project in Vietnam will open a new chapter of cooperation between AFD and the SBV, as well as the governments of two countries, he added.

 

(VOVNEWS)