In Vietnam, microfinance is identified as a pillar to promote financial inclusion. Adhering to the orientation, goals, and upholding the mission, Thanh Hoa Microfinance Organization has been making efforts to synchronously and effectively implement solutions to improve the quality of operations, contributing to promoting the National Financial Inclusion Strategy to 2025, with a vision to 2030, approved by the Prime Minister in Decision No. 149/QD-TTg dated January 22, 2020.

Seminar "Financial inclusion for promoting financial inclusion - current situation and solutions" organized by the Banking Strategy Institute in Hanoi, May 2024.

Pillar to promote National Financial Inclusion Strategy

Microfinance provides basic financial services to the poor, near-poor, low-income people, small and micro enterprises - segments that have not or have difficulty accessing services from traditional financial institutions. At the seminar with the theme: "Microfinance for promoting financial inclusion - current situation and solutions" organized by the Banking Strategy Institute last May, experts, scientists, and managers delved into, focused on discussing, and fully and comprehensively assessing the practical operations of a number of microfinance organizations, programs, and projects as well as the current situation of financial access of microfinance customers; analyzed the legal framework; international experience; proposed solutions to continue developing microfinance activities in our country. In particular, opinions all affirmed: Thanh Hoa microfinance organizations have been promoting their role well, making positive contributions to promoting the National Financial Inclusion Strategy.

The network of microfinance activities is close to the people, serving well and quickly the needs of the poor, low-income people, the disadvantaged, women, people living in rural areas, remote areas, small and micro enterprises, contributing to increasing the rate of people accessing and using financial services in Vietnam.

Thanks to the connection and understanding of customer needs, TCVM products and services are always designed to suit the characteristics of the customer group (easy to access, simple procedures, provided right in the community, small loans that are easy to repay). That helps TCVM maintain a network of loyal customers and continue to attract more and more customers to use the service. In 2023, the number of customers of 4 licensed TCVMs will reach nearly 500,000 people.

TCVM focuses on financial education, improving financial knowledge and skills for financial inclusion subjects; participating in solving social issues such as gender equality, enhancing the role and position of women in society... That is something that few other financial institutions are interested in doing.

Thanh Hoa TCVM - A bright spot in the overall TCVM picture

Closely following the development strategy of the microfinance sector, the banking sector, the action program of the State Bank and in accordance with the actual situation, the microfinance institution has constantly made efforts in implementing its tasks, achieving many remarkable results, contributing to the effective implementation of the National Comprehensive Financial Strategy.

Currently, Thanh Hoa Microfinance Organization operates with 4 branches and 11 transaction offices in 229 communes, 22 districts, towns and cities, with a total outstanding loan balance of VND 468 billion, and a total number of borrowers of 19,755 people. The organization's loan capital has motivated customers to boldly invest in production and business, increase income, gradually stabilize and improve family economy, enhance the position of women in the family and community; significantly contributing to hunger eradication, poverty reduction and social security in the locality.

General Director of Thanh Hoa Microfinance Organization Nguyen Hai Duong answered press interviews on the sidelines of the discussion.

Along with efforts to expand the area and diversify financial products, Thanh Hoa Microfinance Institution actively researches and applies science and technology to innovate operations and improve service quality. In addition to the traditional approach of Microfinance officers directly meeting, promoting and introducing products and services to customers or through the Women's Union and local authorities. Thanh Hoa Microfinance Institution applies technology (via tablets and smartphones) to register loan customer information through the CCS software subsystem and online savings app to transact with customers who deposit savings right at the village cultural house with the smallest deposit amount, customers can deposit regularly without incurring travel costs.

TCVM always does a good job of disseminating, educating, sharing knowledge, skills, and management experience in the fields of finance, business, startups, micro-enterprise management, etc. for members participating in loans. At the same time, TCVM Thanh Hoa regularly organizes for its staff, employees, and Women's Union staff in localities in the province to participate in training courses, workshops, and organize propaganda on issues related to gender equality, gender violence, and sexual abuse of women and children. This is one of the practical and highly effective activities, creating sustainable values, thereby affirming the prestige, brand, and spreading humane values ​​to TCVM's customers in particular and the community in general.

During the process of construction and development, Thanh Hoa TCVM Organization focuses on and actively participates in social security activities. Since the beginning of the year, the organization has participated in many charitable and humanitarian programs and activities such as: Giving a warm house worth 50 million VND and 40 gifts worth 20 million VND in the program "Spring Solidarity - Border Tet" and the "Warm Border Love" market organized by the Thanh Hoa Provincial Women's Union in coordination with the Provincial Border Guard Command; giving a house and many gifts to households and children in difficult circumstances in Cam Thuy district in the program "Warm Tet for Children - 0 VND Tet Fair". Responding to the call of the Standing Committee of the Provincial Party Committee of Agencies and Enterprises to support the elimination of thatched houses, dilapidated houses, and temporary houses for poor households and households with difficult housing circumstances in the period of 2022-2025 in Thach Thanh district, Thanh Hoa Microfinance Organization has paid attention and supported the construction of a Great Unity house for the family of Ms. Nguyen Thi Son, Tay Huong village, Thanh My commune. Thanh Hoa Microfinance Organization and the Provincial Women's Union have supported the construction of a charity house for 2 poor and especially disadvantaged member households in Tam Chung commune (Muong Lat), with a total value of 100 million VND...

The National Financial Inclusion Strategy clearly states the goal for the microfinance sector as “developing a system of microfinance organizations, programs, and projects that operate safely, effectively, and sustainably, aiming to serve the poor, low-income people, women, and micro-enterprises with diverse, flexible, and appropriate financial products and services, contributing to the implementation of the Party and State's policies on promoting social security and sustainable poverty reduction.”

To meet the goals, on the one hand, all levels and sectors need to continue to review and perfect the legal framework on the organization and operation of microfinance institutions; improve the operational capacity of microfinance institutions; promote communication to enhance understanding of microfinance activities for customers and people; continue to encourage the development of models linking commercial banks' operations with microfinance institutions, programs and projects through the form of providing credit capital... On the other hand, microfinance institutions themselves need to be proactive, creative, mobilize all resources, and synchronously deploy solutions for development.

Mr. Nguyen Hai Duong, General Director of Thanh Hoa Microfinance Bank, shared: “In order for microfinance to play its role as a pillar in promoting comprehensive finance, it is necessary to first build a separate legal framework, suitable for practical operations and customer groups such as regulations on lending, receiving deposits... For Thanh Hoa Microfinance Bank, in the coming time, we will innovate more strongly in all aspects to achieve the highest goal of “for the development of the community”.

Article and photos: Hoang Linh