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.