The project is part of the cooperative activities between France and Vietnam, aiming to promote a financially and institutionally sustainable sector, in order to broaden access to financial services for Vietnamese people.

Through this project, AFD will support the Vietnamese government in implementing legal reforms in order to promote the development of microfinance.

With this new financing agreement, the total net commitments of AFD for official development assistance (ODA) for Vietnam will amount to around 1.070 billion euro.

Vietnam Investment Review - December 14, 2011

France grants Vietnam 1m euro for sustainable micro-finance

France has granted one million euro in non-refundable aid to help Vietnam develop sustainable micro-finance projects.

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 Francaise 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.

Radio Voice Of Vietnam - December 14, 2011