MICROCAPITAL BRIEF: State Bank of Vietnam (SBV) Issues License to M7 Microfinance Limited Institution (M7-MFI)

The State Bank of Vietnam (SBV),Vietnam’s central bank, has issued an operating license to microfinance institution (MFI) M7 Microfinance Limited Institution (M7-MFI). M7-MFI was formed by merging three Vietnamese MFI social funds within the M7 Microfinance Network (M7): the Uong Bi Fund for Promoting Women, the Mai Son Support Fund for Ethnic Women and the Dong Trieu Women’s Assistance Fund [1]. Together, these institutions report aggregate assets of USD 3.09 million, a gross loan portfolio of USD 1.34 million, approximately 12,300 borrowers, USD 2.37 million in deposits and 19,600 depositors as of 2010.

By Brendan Millan, Research Associate

About M7 Microfinance Limited Institution (M7-MFI): M7-MFI was formed in 2012 by the merger of three Vietnamese MFI social funds within the M7 Microfinance Network (M7): the Uong Bi Fund for Promoting Women, the Mai Son Support Fund for Ethnic Women and the Dong Trieu Women’s Assistance Fund. Together, these institutions report aggregate assets of USD 3.09 million, a gross loan portfolio of USD 1.34 million, approximately 12,300 borrowers, USD 2.37 million in deposits and 19,600 depositors as of 2010.

About M7 Microfinance Network (M7): Also called M7 Group, M7 is a network of seven MFIs that provide microfinance services to low-income communities, especially women and their families. M7 was established in 2006. M7 does not report aggregate data to the US-based nonprofit Microfinance Information Exchange (MIX). In 2012, three of these institutions merged to form M7 Microfinance Limited Institution (M7-MFI).

About Uong Bi: Established 1995, Uong Bi is a Vietnamese microfinance institution (MFI) and member of the M7 Group. As of 2010, Uong Bi reports to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 949,000, a gross loan portfolio of USD 856,000, 3,420 active borrowers deposits of USD and 448,000 from approximately 7,150 depositors. In 2012, the institution was merged with two others to become the M7 Microfinance Limited Institution (M7-MFI).

About Mai Son: Established in 1993, Mai Son is a Vietnamese microfinance institution (MFI) and member of the M7 Group. As of 2010, Mai Son reports to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 941,000, a gross loan portfolio of USD 865,000, deposits of USD 326,000 from approximately 5,400 depositors and about 3,100 active borrowers. In 2012, the institution was merged with two others to become the M7 Microfinance Limited Institution (M7-MFI).

About Dong Trieu: Established 1997, Dong Trieu is a Vietnamese microfinance institution (MFI) and member of the M7 group. As of 2010, Dong Trieu reports to the US-based nonprofit Microfinance Information Exchange (MIX) a gross loan portfolio of USD 1.3 million, deposits of USD 651,000 from approximately 7,050 depositors and about 5,800 active borrowers. In 2012, the institution was merged with two others to become the M7 Microfinance Limited Institution (M7-MFI).

About the State Bank of Vietnam (SBV): SBV is the central bank of Vietnam. It was founded in 1951 as the Vietnam National Bank and later renamed as State Bank of Vietnam. It performs monetary and banking activities and acts as the Central Bank of the Socialist Republic of Vietnam.

Sources and Resources:

[1] Nhan Dan: “M7 Microfinance Instituation License.”, http://www.nhandan.com.vn/cmlink/nhandan-online/homepage/economics/current/m7-microfinance-institution-licensed-1.336751

MicroCapital.org Article, December 24, 2011, “VietnamSets 10-Year Microfinance Strategy, French Agency Donates $1.3m”, https://www.microcapital.org/microcapital-brief-vietnam-sets-10-year-microfinance-strategy-french-development-agency-donates-1-3m/

MicroCapital.org Article, June 13, 2011, “Rural and Microfinance in the Lower Mekong Region: Policies, Institutions, and Market Outcomes: by Binh T Nguyen, Robert Vogel; Published by Asian Development Bank (ADB)”, June 13, 2011, https://www.microcapital.org/microfinance-paper-wrap-up-rural-and-microfinance-in-the-lower-mekong-region-policies-institutions-and-market-outcomes-by-binh-t-nguyen-robert-vogel-published-by-asian-development-bank-adb/

MicroCapital.org Article, August 30, 2010, “Vietnam’s First Licensed Microfinance Institution TYM is Operational”, https://www.microcapital.org/microcapital-brief-vietnam%E2%80%99s-first-licensed-microfinance-institution-tym-is-operational/

MicroCapital.org Article, September 30, 2009, “Vietnamese Government Sets Up Working Committee on Microfinance”, https://www.microcapital.org/microcapitalorg-story-vietnamese-government-sets-up-working-committee-on-microfinance/

MicroCapital.org Article, March, 10, 2009, “State Bank of Vietnam (SBV) to Give Legal Status to Semi-Official Microfinance Institutions (MFIs); Calls for The Establishment of The Vietnam Microfinance Association”, https://www.microcapital.org/microcapital-story-state-bank-of-vietnam-sbv-to-give-legal-status-to-semi-official-microfinance-institutions-mfis-calls-for-the-establishment-of-the-vietnam-microfinance-association/

MicroCapital Universe Profile: M7 Microfinance Limited Institution (M7-MFI),  https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=M7+Microfinance+Limited+Institution+%28M7-MFI%29

MicroCapital Universe Profile: M7 Microfinance Network (M7), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=M7+Microfinance+Network+%28M7%29

MicroCapital Universe Profile: The State Bank of Vietnam (SBV), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=State+Bank+of+Vietnam

MicroCapital Universe Profile: Uong Bi, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Uong+Bi

MicroCapital Universe Profile: Mai Son, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mai+Son

MicroCapital Universe Profile: Dong Trieu, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Dong+Trieu

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

 

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