Luận văn the microfinance for the poor in vietnam

Graduate Business School
Dissertation Cover Sheet 2011-2012
Student name: LONG BUI THANH
Student number: 2826149
Course: MSCAF Stage/year: 3
Subject: Master of Accounting and Finance Management
Study Mode: Full time x Part-time
Lecturer Name: Suzanne Burdis
Dissertation Title: The microfinance for the poor in Vietnam: The case of Tra Vinh province
Date submitted: 13/9/2013
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The microfinance for the poor in Vietnam:
The case of Tra Vinh province
Research dissertation presented in partial fulfillment of
the requirements for the degree of MSc in Accounting
and Finance Management (HETAC & NTU)
Graduate Business School
Griffith College Dublin
Dissertation Supervisor: Dr. SUZANNE BURDIS
Candidate Name: LONG BUI THANH
2013
Candidate Declaration
Candidate Name: LONG BUI THANH
I certify that the dissertation entitled:
The microfinance for the poor in Vietnam: The case of Tra Vinh province
Submitted for the degree of: MSc in Accounting and Finance Management is
the result of my own work and that where reference is made to the work of
others, due acknowledgment is given.
Candidate signature:
Date:
Supervisor Name:
Supervisor signature:
Date:
Acknowledgements
I dedicate this work to my supervisors, Suzanne Burdis, who gave me much
good knowledge on my dissertation. I would like to thank my mom, dad,
brothers and sister who have always been there when I needed them and
believed in me even when I did not. I really thank so much my wife and my
daughter whom give beliefs and hopes in my life.
Abstract
The microfinance for the poor in Vietnam:
The case of Tra Vinh province
This study examines real situations of microfinance programs for the poor in Tra Vinh
province, Vietnam. Besides, the study also analysed the impacts of microfinance operations
in poverty reduction from 2010 to 2012 at Tra Vinh province. Namely, the study measured
the effectiveness’s microfinance for the poor and weakness’s poverty reduction policies in
Tra Vinh province. The study conducted to survey the poor’s measurements in access to
microfinance sources. Therefore, the research presented recommendations about appropriate
polices that can contribute practical solutions in poverty reduction through microfinance
programs at Tra Vinh province, Vietnam.
Table of contents
Candidate Declaration
Acknowledgements
Abstract
Table of contents
1. INTRODUCTION ……..…………………………………………………………….1
1.1 Overview …………………………………………………………………………….1
1.1.1 Overviews of Vietnam …………………………………………………………..1
1.1.2 Overviews of Tra Vinh province ………………………………………………1
1.2 Research objectives and Aims ……………………………………………………….4
1.3 Structure of dissertation ……………………………………………………………...6
2. LITERATURE REVIEW ………….………………………………………………..8
2.1 Introduction ………………………………………………………………………….8
2.2 The nature of microfinance ………………………………………………………….8
2.3 Microfinance policies at some developing countries in the world…………………11
2.3.1 Bangladesh …………………………………………………………………………..11
2.3.2 India (SEWA Bank)…………………………………………………………………15
2.3.3 Indonesia (Bank Rakyat Indonesia)……………………………………………...16
2.4 Microfinance policies at Vietnam ………………………………………………….16
2.5 Microfinance in the context of Tra Vinh province, Vietnam ………………………21
3. RESEARCH METHODOLOGY ………………………………………………….23
3.1 Introduction ………………………………………………………………………...23
3.2 Research Objective …………………………………………………………………23
3.3 Research strategy …………………………………………………………………..24
3.4 Methods for data collection ………………………………………………………...25
3.4.1 Primary data ………………………………………………………………………..26
3.4.2 Advantages and disadvantages of primary data ……………………………….27
3.4.3 Secondary data …………………………………………………………………….28
3.4.4 Advantages and disadvantages of secondary data ……………………………28
3.5 Possible techniques for analyzing data ……………………………………………29
3.6 Access and research ethics issue ………………………………………………….29
4. RESEARCH ANALYSIS …………………………………………………………31
4.1 Introduction ……………………………………………………………………….31
4.2 Analyzing real situations of the poor people at Tra Vinh province……………….31
4.2.1 Information of the poor at Tra Vinh province …………………………………31
4.2.2 A summary of the poor in Tra Vinh province ………………………………….34
4.3 The realty of getting access to microfinance programs in the Tra Vinh province.37
4.3.1 Information on microfinance providers in Tra Vinh province ……………..37
4.3.2 Evaluating microfinance operations in Tra Vinh province ………………...42
4.4 Measuring the effects of microfinance programs ………………………………..44
4.5 Comments about microfinance programs for the poor at Tra Vinh province……46
4.5.1 The effectiveness of microfinance programs at Tra Vinh province………..46
4.5.2 Limitations of microfinance programs at Tra Vinh province ……………...47
5. RECOMMENDATIONS AND CONCLUSIONS ……………………………..48
5.1 Evaluating the impacts of microfinance programs for the poor in
Tra Vinh province ……………………………………………………………48
5.1.1 The success of microfinance programs for the poor in Tra Vinh
province in past three years …………………………………………………….48
5.1.2 Weakness of microfinance programs for the poor in Tra Vinh
province in past three years …………………………………………………..49
5.2 Recommendations for microfinance programs in the futures …………………50
5.2.1 The long term microfinance strategy for the poor in Vietnam ……………50
5.2.2 Direct microfinancing solutions for the poor in Tra Vinh province……..51
5.3 Conclusion …………………………………………………………………….52
5.3.1 Results of my research …….…………………………………………………..52
5.3.2 Limitations of my dissertation ………………………………………………..52
5.3.3 Experiences of research ………………………………………………………52
Reference …………………………………………………………………………..54
Appendix A: Survey questionnaire - The microfinance for the poor: The case
of Tra Vinh province, Vietnam……………………………………………………..57
Appendix B: Table 4.7 - Statement of the poor household data in Tra Vinh
province 2010 – 2012 ………………………………………………………………60
The microfinance for the poor in Vietnam: The case of Tra Vinh province
2013
Chapter 1
INTRODUCTION
1.1 Overview
1.1.1 Overviews of Vietnam
Vietnam is a nation was damaged significantly by a terrible war in long time and it was ended in
30/4/1975. There are many challenges for Vietnam economy that was over Vietnamese people.
Most of the Vietnamese people lived in poverty stricken life, and the big numbers of Vietnamese
people were illiterate after the end of the Vietnamese war. The Vietnam economy depended on
completely aids from communist countries in the war such as Soviet Union. And then,
Vietnam was a socialist country and had a subsidy economy. After the end of the war, Vietnam
economy also depended on many aids from socialist countries. Governmental economy showed
many weaknesses in control and management based on socialist models. Especially, there is a
failure of Soviet Union and communist countries in the world that effected significantly for
Vietnam economy. Besides, there was an economic embargo with Vietnam from America after
they failed Vietnamese war. Therefore, Vietnam had not opportunities access to developed
countries in the world. Vietnamese leaders were very bad economic management knowledge and
they always leant social economy model which are causes of Vietnam economy were very weak
from 1975 to 1986. In addition, corruption was a big problem in Vietnamese government that
was created a drawback perspective for Vietnam economy.
In recent years, Vietnam economy has been changed significantly in many sides. Vietnam is one
of the countries with higher economic growth in Asia pacific (behind China and India). After
1986, Vietnamese leaders looked many weaknesses in economic management and the failure of
socialist model. The Vietnam changed completely economy that considered a period of reform in
Vietnam economy. Besides, American government decided to lift the embargo toward Vietnam.
Vietnam could open accessing to all countries in the world. These are reasons for significant
Vietnam economy growth.
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The microfinance for the poor in Vietnam: The case of Tra Vinh province
2013
Besides the success of economy, Vietnam also showed the interests in poverty reduction. There
were 60% Vietnamese population in 1990 lived a miserable condition after the war and the rate
of poor population reduced 10% Vietnamese population in 2012 according to poverty standards
of United National Organization (World Bank, 2012). There were about 8.85 million Vietnamese
poor people, about 2.8 million poor households (Asia Development Bank, 2012). From these
points show that was an effective change in the poverty reduction at Vietnam. The percentages of
poor people reduced significantly in the past years. However, the numbers of poor people
occupied a big amount of population. The poor always were disadvantages of economic changes.
There are still more challenges facing the poor people day by day. As the economy grows so it
also creates high inflation, the increase of cost of goods adds to the disadvantages faced by the
poor in the life. Most of the poor lived in remote and rural areas and their jobs were complete
farming. They always were low education and limited opportunities accessing to modern
information. Therefore, they had to face poor life in long time.
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The microfinance for the poor in Vietnam: The case of Tra Vinh province
2013
Chart 1: Vietnam Map
(Source: www.en.vietnamitasenmarid.com)
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The microfinance for the poor in Vietnam: The case of Tra Vinh province
2013
1.1.2 Overviews of Tra Vinh province
Tra Vinh province is one of the poorest provinces in Vietnam. Tra Vinh province was established
in 1992. Public infrastructures were very poor, the most of nature was agriculture and
aquaculture. Local government invested too slowly in poverty reduction. There was about 21 %
of population is the poor in 2012 in Tra Vinh province and there was 52 % of poor people are
Khmer, Khmer is ethnic minority (Department of Labor and Social Welfare Service of Tra Vinh
province, 2013). The number of the poor always is a big interesting of local government and
local people in many past years. Most of the poor lived in lack of many sides such as low
education, lack of material facilities, lack of modern information, etc. Especially, Khmer
objectives were many disadvantages of poor life conditions. They had customs living in remote
regions far urban areas such as shanties, home villages, and they limited to communicate modern
society which created limitations of modern information, education, and modern society.
Chart 2: Tra Vinh province Map
(Source: www.en.vietnamitasenmarid.com)
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