Evaluating operational status of 5 People Credit Funds (PCFs) granted by the World Bank

As a component of rural financial III project, from August 2011, MACDI was invited to conduct the evaluation of operational effectiveness for 5 People Credit Fund chosen to take part in the project. The rural financial III project was funded by World Bank and managed by Bank for Investment and Development of Vietnam (BIDV). The five People Credit Funds evaluated were funds in: (i) Van Trach – Quang Binh; (ii) Cham Mat – Hoa Binh; (iii) Moc Chau – Son La; (iv) An Thanh – Binh Duong and (v) Go den – Long An.

The experts from MACDI evaluated operational effectiveness of each fund according to 3 aspects: operation, training and technical support. The aim of the evaluation was: (1) to provide a full picture about the status of operation in each fund; (ii) to provide a picture of the status of activities in training and technical support and the upcoming training needs; and (iii) to give recommendations about technical support and/or training, capacity building for each fund.

After one month of continuous working directly with each fund, the experts from MACDI composed reports for each fund and a general report about the system of People Credit Funds. In which, MACDI displayed analysis, real practices and presented suggestions for the fund’s operation. In addition to emphasizing on the necessity and urgency of training for staff of funds in order to adapt to global and national economic status in the difficult time, MACDI also provided some successful models of international credit cooperatives in developed countries (Canada, Brazil, America…) and developing countries (Philippines, Indonesia, Singapore…). The advantages and disadvantages of each model were mentioned and analyzed clearly. Besides, MACDI recommended the funds should develop products for low income people and products with high responsibility for community so that the fund could develop sustainably.