Vietnam rural financial market- Fact dianostics and the policy implications for rural development of Vietnam

Abstract

The development of Vietnam rural sector has been given attention by different orientations and policy frameworks, of which rural finance is the key tool, notably the Decree 41 on cred- it for rural sector. The Vietnam rural financial sector has been growing and making significant contribution to its rural development by a rapid expansion of outreach and available fund sources. However, there have been remaining problems that are very likely to hinder the sector from its further development. Such problems are: (1) there is a lack of responsive and adequate financial services in rural areas; (2) a significant number of the poor households still do not have access to any microfinance services, to name a few. Thus, this paper is intented to focus on two main issues. The first is to analyze the causes of such problems, and the second is to pro- vide recommendations that are strongly expected to overcome such problems to enhance Vietnam rural development in the new decade with the Development Millenium Goal.