VBSP works with Ethiopian Microfinance Institutions

The event is within the framework of member relations with the Asia-Pacific Rural and Agricultural Credit Association (APRACA).

Overview of the meeting

At the meeting, two sides exchanged and discussed about microfinance, digital applications in microfinance in Vietnam and social policy credit activities implemented at VBSP.

Currently, VBSP is the largest unit providing comprehensive finance for poor households and policy beneficiaries in Vietnam. VBSP has established a management organization model and credit methods that suitable to the specific characteristics of political system in Vietnam. Besides, VBSP has been effectively operating with more than 20 programs, focusing on lending to poor households, near-poor households, post-poor households and other policy subjects.

After more than 21 years of operation, social policy credit has supported more than 6.5 million households to overcome the poverty threshold; more than 6.4 million workers get jobs; nearly 3.9 million disadvantaged students have opportunities of schooling; more than 18 million works of rural safe water and environmental sanitation built; nearly 772 thousand houses built for the poor and other policy beneficiaries, etc.

With these achievements, VBSP was honored to receive the title "Labor Hero" in the reform period awarded by the State. The World Bank also has a report recognizing "VBSP is the largest microfinance provider in Vietnam and is one of the largest microfinance organizations in Asia. The success of policy credit deployment in Vietnam has contributed to achieving the millennium goals ahead of schedule. The development journey of VBSP has brought valuable experiences to the Governments of other countries”.

On behalf of the Working Group, Mr. Ayele Bogale Gedamu - Chairman of the Board of Directors of Liyu Microfinance Organization, thanked for VBSP’s enthusiastic welcome and congratulated the achievements that VBSP has achieved in recent times. Mr. Ayele Bogale Gedamu also said that in Ethiopia, most Microfinance Organizations have a common goal of reducing poverty by providing loans and savings services through group lending. Therefore, the visit VBSP is an opportunity for the Leader Team of Ethiopian Microfinance Institutions to learn and exchange experiences on microfinance in general and current policy credit activities implemented at VBSP in particular. It also is a useful basis to help managers of Ethiopian Microfinance Institutions perform their work better when returning their country.

Within the framework of the experiential learning program, the delegation will go on a field trip to learn about social policy credit activities, microcredit, credit programs for job creation in the northern provinces of Bac Ninh and Quang Ninh./.