Determinants of Sustainability of Microfinance Institutions in Vietnam

The research project will apply multiple regression techniques, which include Pooled Ordinary least squares Regression (Pooled OLS), Fixed Effects (FEM), and Random Effects (REM), in order to analyze the factors affecting the sustainability of the microfinance institutions (MFIs) in Vietnam. In particular, the sustainability of microfinance institutions will be measured by operational self-sufficiency, financial self-sufficiency, and Gross loan portfolio. The effect of the unique mechanism of microfinance that aims to tackle the problem of information asymmetry and the impacts of other factors on the performance of MFIs in Vietnam between 1999 and 2021 will also be examined.

Efficiency Analysis of Vietnamese Microfinance Industry: A Meta-frontier DEA Approach

The research project will develop the results of the first paper in the next level by determining a scalar measurement of the "overall performance" of microfinance institutions in Vietnam in terms of achieving the dual goal of outreach (social efficiency) and sustainability (financial efficiency). The study will attempt to analyze the efficiency levels in the Vietnamese Microfinance Industry using the meta-frontier DEA approach, a non-parametric linear programming-based frontier technique. The performance of the microfinance institutions in the first paper is measured by operational self-sufficiency, which did not reflect “overall performance” in terms of achieving the dual goal of social and financial efficiency. DEA can simultaneously consider multiple inputs and multiple outputs for calculating the relative efficiency and consequently determine a scalar measurement of “overall performance” in terms of achieving the dual goal of outreach (social efficiency) and sustainability (financial efficiency).

Assessing the Social Impact of Microfinance Loans Subsidized on Borrowers. Experimental Evidence from Vietnam

The research project will investigate the detrimental effects of the subsidizing policy using randomized controlled trials (RCTs). This paper will focus on borrowers and/or communities. Experimental methods such as RCTs will be used to assess the social impact of microfinance. In particular, RCTs will be employed to identify causal effects of expanded access to microfinance on borrowers and/or communities. The existence of the Vietnam Bank for Social Policies (VBSP) is a unique feature of the microfinance industry in Vietnam. Thus, I would like to investigate the social impact of microfinance on VBSP's clients and borrowers of the semi-formal sector of the microfinance industry in Vietnam.