Sustainable development of microfinance institutions in Vietnam

Abstract:

Microfinance institutions (MFIs) play an increasingly important role in the economy with the goal of financially empow- ering the poorest members of society and promoting sustainable development. The mission of MFIs around the world and in Vietnam is to “eliminate extreme poverty”, while balancing the two goals “social and financial” becomes the focus of the “microfinance promise”. Nowaday, being financially sustainable and serving society has become one of the challenges that MFIs are facing to achieve sustainable development. With data collected on the operating situation of microfinance institutions officially licensed to operate in Vietnam, the research shows positive results on financial sustainability, there- by providing management implications for the sustainable development of these organizations in the future.