A workshop was held in the northern midland province of Phu Tho on September 16 to implement a microfinance support program, helping promote better access to sustainable, affordable and diversified financial services by low-income groups in Vietnam. The project, funded by Cordiad from the Netherlands with technical assistance from the International Labor Organization (ILO), will build institutional and operational capacity of microfinance stakeholders through the establishment of a network of qualified training providers, and the strengthening of the representation roles of the microfinance working group. It will also improve access to savings products for low-income groups and promote micro-insurance initiatives for the low-income population. The project emphasizes linking training institutions with resource trainers/practitioners in the area of microfinance, exploring innovative channels for distributing savings and insurance products to a greater number of poor in rural and remote areas, and enhancing the financial capabilities of low-income groups to enable them to make informed choices on money matters. Deputy Minister of Labor, Invalids and Social Affairs Nguyen Trong Dam spoke highly of the project in helping the ministry to make policies relating to poverty reduction and risk mitigation.
“Through the project, we do hope that concerned line ministries and agencies will recognize the importance and ways for effective cooperation between policy makers, microfinance service providers and social organizations for the best interest of Vietnamese people, especially low-income groups,” he said.
Rie Vejs-Kjeldgaard, ILO country director, said the project continues to demonstrate the strong commitment of the ILO in assisting the government of Vietnam in developing effective social protection policies under the framework of Decent Work for All. Microfinance has developed gradually during the past 20 years, reaching over six million low-income people in all provinces of the country. However, the microfinance sector in Vietnam has not fully realized its potential for fostering economic and social development in comparison with other regional countries, since there is no leading training institution in the sector. (vietnamplus.vn Sept 16)
