The nexus Between the Growth of Microfinance Institutions and the Macroeconomic Context in Vietnam

Abstract

Abstract:The aim of this paper is to provide an overview of the development of the microfinance sector in Vietnam and to examine the link between microfinance institution development and domestic economic factors. Particularly after reviewing previous papers conducted all over the world, this paper examines the Vietnamese market by using five years (2010)(2011)(2012)(2013)(2014)(2015) of data from Vietnamese microfinance institutions by using a descriptive statistical method. It was found that the growth of gross domestic product (GDP) and gross loans portfolio more or less have a relation. Likewise, foreign direct investment (FDI) inflow growth seems to have a link with asset development. This result also opens up several avenues for future research. Further studies could be performed to examine data with a quantitative method to test the results.

Testing the Influence of Macroeconomic Environment on Microfinance Banks’ Liquidity in Nigeria: A Vector Autoregressive Approach

“…The study of Doci (2017) used GDP growth inflation and interest rates and in contrast found that macroeconomic factors indeed have significant impact on gross loan portfolio performance of MFIs in Albania. Tran (2017) study of macroeconomic context and growth of MFIs equally established a link between growth of GDP and gross loan portfolio of MFIs in Vietnam. Hermanto and Astuti (2013) in their study of MFIs' financial activities in Java Indonesia found that even though, the two macroeconomic variables (GDP growth and inflation) used have no significant impact on MFIs' profitability, inflation exerts negative impact on NPL ratio of MFIs.…”