Microfinance a crucial pillar towards financial inclusion

09:58 | 17/12/2018 Finance - Banking

Microfinance activities have been acting as one of the crucial pillars towards achieving the goal of financial inclusion, said Dao Minh Tu, deputy governor of the State Bank of Vietnam (SBV), during a seminar in Hanoi on December 12.

SBV Deputy Governor Dao Minh Tu speaks at the seminar

In his opening remarks, Tu hailed the event as an ideal platform for the parties concerned to share viewpoints, knowledge and experience in developing the area of microfinance.

He stated that the world is currently faced with three major challenges, namely poverty, inequality and migration. Financial services (including savings, insurance, money transfer, payment and credit) are an important basis to deal with these global issues, and are also a premise towards the goal of sustainable, equal and comprehensive development for all the subjects in the society, especially the vulnerable groups.

The advent of microfinance aims to enhance economic conditions for poor customers, providing them with development and improvement opportunities via the provision of financial services for the poor, Tu added.

In addition to facilitating the poor’s direct access to financial and nonfinancial services, microfinance organisations also look towards strengthening customers’ capabilities to sustainably access official financial services, he said, noting that microfinance is seen as a development tool for the poor, not a merely financial service.

During the seminar, representatives from some microfinance organizations introduced an overview of the operational reality of official microfinance institutions, the impacts of microfinance in poverty reduction, as well as the provision of financial services to meet the needs of poor people and low-income earners, and the development of microenterprises in rural areas.

Immediately after the seminar, an awards ceremony for the Citi – Vietnam Microentrepreneurship Awards 2018 (CMA 2018) took place, with 30 microfinance customers and four microfinance institutions, selected from more than 100 submissions across the country, being honoured. The annual awards, funded by Citi Foundation/ Citi Bank – Vietnam, aims to recognize and honour the microentrepreneurs with initiatives in using loans effectively and the typical microfinance institutions that have significantly contributed to the implementation of the Scheme on Building and Developing a Sustainable Microfinance System in Vietnam by 2020, contributing positively to the poverty reduction of the country.

Theo NDO