A good example of rural finance model

Deputy PM Hoang Trung Hai - Photo: VGP

The country has completed three rural finance projects with total capital of US$548 million. The World Bank provided US$200 million for the 3rd one.

The objective of the 3^rd project is to raise economic benefits to rural private enterprises and households by enhancing their access to finance.

The expected outcomes include: improved access to financial services for rural entrepreneurs, increased capital investment made by the rural entrepreneurs as well as increased employment, and increased lending, particularly term lending to the rural private sector for capital investment by all participating financial institutions on market-based terms.

Between 2009 and 2013, this project has effectively contributed to increasing medium and long-term finance for rural economic development, poverty reduction and job creation.

Specifically, over 135,000 rural households and enterprises, including 70,000 poor households could access to the World Bank-funded capital. More than 140,000 new jobs were created within the reviewed period.

World Bank Country Director Victoria Kwakwa noted that Viet Nam has successfully realized the rural finance model. That was why the international institution decided to offer funding for the 3^rd project after the country completed the 2^nd one. It was unprecedented.

The 1^st project, deployed in 1996, provided 600,000 loans for low-income and poor households, and created 410,000 new jobs for rural residents.

Speaking at the workshop, Deputy PM Hoang Trung Hai highly valued the importance of the capital granted to Viet Nam by the World Bank and other international institutions. As a result, the country has made great achievements in improving living standard and reducing poverty rate in rural areas./.

By Hai Minh