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ISSN : 2234-3040(Print)
ISSN : 2234-3059(Online)
The East Asian Journal of Business Management Vol.3 No.1 pp.5-16

Microfinance Outreach and the Microfinance Institutions(MFIs) Sustainability:Evidence from Vietnam

Richard Chinomona*, Le Thanh Tam**

* Corresponding Author, Department of Logistics, Vaal University of Technology, Private Bag X021, Vanderbijlpark 1900, South Africa. E-mail:
**Faculty of Banking and Finance, National Economics University, 207 Giai Phong Road, Hanoi, Vietnam. E-mail:

Received: December 27, 2012. Revised: March 14, 2013. Accepted: March 18, 2013.


Purpose - Micro-finance institutions (MFIs) are critical toVietnam’s quest for poverty alleviation among the poor in the ruraland agrarian communities. The current study attempts to investigatethe impact of microfinance outreach programs undertaken by formaland semi-formal MFIs in Vietnam targeting the poor rural and agrariancommunities.
Research design, data, methodology - An enquiry was made as towhether the poor and rural communities accessed the micro credit offeredby Government supported MFIs and NGOs through their microfinanceoutreach programs. Furthermore, the current study attemptedto explore if the current mode of operations adopted by MFIs inVietnam is sustainable.
Results -The findings indicate that significant progress has beenmade in Vietnam to alleviate poverty among the poor rural communitiesthrough micro finance outreach programs.
Conclusions - There are also pointers of MFIs sustainability inVietnam. However, it still remains to be seen if the current sustainabilitypointers are long lasting without government subsidies or someinternational organizations financial support to microfinance outreachprograms.

JEL Classifications : E44, G21, G23, G32, O16, Q14, R51.


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