MICROCAPITAL BRIEF: Dariu Foundation Increases Microfinance Lending in Vietnam Amidst Inflationary Pressures, Rising Interest Rates

The Dariu Foundation (TDF), a Vietnam-based microfinance institution (MFI), amidst double-digit inflation and increasing domestic interest rates, has seen a 25-percent increase in the number of new clients served and a 47-percent increase in the number of loans disbursed during the first five months of this year compared to the same period last year. According to the English-language Vietnamese newspaper Viet Nam News, the interest rate charged by TDF has not changed since it began operations in 2007, whereas commercial banks have been raising interest rates steadily.

Mr Nguyen Van Hanh, director of TDF, reportedly made the extreme statement that “All clients who have participated in the programme now are people not living below the poverty line. Several have even become wealthy.” As of 2010, TDF reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX), total assets of USD 1.9 million, a gross loan portfolio of USD 1.7 million and 13,000 borrowers.

By Carol Kim, Research Associate

About The Dariu Foundation (TDF): TDF is a microfinance institution that began operations based in Ho Chi Minh City, Vietnam, operating in the provinces of Dong Nai and Vinh Long. Established by Tomas Trueb of Switzerland with an initial capital of CHF 400,000 (USD 512,000), TDF holds a vision of creating prosperity by combining microfinance and children’s education in the poorest households in Vietnam. According to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, TDF reported total assets of USD 1.9 million, a gross loan portfolio of USD 1.7 million, 13,000 borrowers, 10.4 percent return on assets (ROA) and 12.8 return on equity (ROE) as of 2010.

Sources and Additional Resources:

Viet Nam News: “Microcredit saves poor from inflation”, July 2011, http://vietnamnews.vnagency.com.vn/Social-Isssues/213667/Microcredit-saves-poor-from-inflation-.html

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)”, 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: “MICROCAPITAL BRIEF: Oikocredit Invests $5m in Alalay Sa Kaunlaran Inc of the Philippines, Capital Aid Fund for Employment of the Poor (CEP) of Vietnam, The TYM Fund of Vietnam and Thaneakea Phum (Cambodia) Limited”, August 23, 2010, https://www.microcapital.org/microcapital-brief-oikocredit-invests-5m-in-alalay-sa-kaunlaran-inc-of-the-philippines-capital-aid-fund-for-employment-of-the-poor-cep-of-vietnam-the-tym-fund-of-vietnam-and-thaneakea-phum-camb/

MicroCapital’s Universe Profile: The Dariu Foundation (TDF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=The+Dariu+Foundation

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

Similar Posts: