Consulting on transforming into social fund for microfinance fund in Haiphong according to the Decree 148

Established from 2004 with two sources of budget which are the capital from the support to improve environment from Finland government and the capital from housing improvement project funded by World Bank, Microfinance fund in Haiphong aimed to lend poor and low income households in urban areas in order to reduce poverty and assure social livelihood. With the technical assistance and financial support from donors and Women Union in Haiphong, the microfinance fund has facilitated more than 17,000 households, of which are mainly women (63.5%) in the areas in Haiphong.

To support for the model of the fund on the basis of sustainability in the aspects of institutional, structure and legal status, the donors hoped microfinance fund in Haiphong to transform into a social fund which is step toward the establishment of microfinance institution according to current law in Viet Nam.

The aim of the consulting from MACDI was to facilitate Microfinance fund in Haiphong to transform successfully into a legal fund under the Decree of No 148/2007- ND/CP issued on 25 September 2007 and toward the direction of professionalization. This would be an intermediary step to apply for official license operating as a microfinance institution from state Bank.

MACDI’s experts built and designed 2 manuals: proposal for establishment and manual for guiding operation to meet legal needs and capacity of Microfinance Fund in Haiphong. Besides, MACDI consulted and supported the fund to hand in the application to department of Home Affairs for license of operation.