Stakeholders' Perspectives on Effectiveness

Abstract

The microfinance industry in Vietnam, particularly those sponsored by non-government organisations (NGOs), has experienced rapid expansion in recent years. Yet in spite of this growth, an analysis of their effectiveness has been lacking. In a bid to help address this shortcoming, this paper reports on a subset of data that was obtained during a survey and interview process that incorporated various stakeholders including financial donors, NGO-sponsored microfinance institutions (NMPs), village leaders and NMP members and nonmembers. Perceptions of NMPs effectiveness are discussed from the standpoint of various stakeholders. NMPs are found to be at a critical juncture. While their activities are widely perceived to contribute to poverty alleviation, their future viability is clouded by donor requirements that they become financially self-sufficient and at the same time certain government policies are making achieving this goal difficult.