Vietnam’s poverty rate has reduced dramatically in recent times thanks to incentive policies for the poor, and poverty reduction is still the Government’s long-term goal, said Governor of the State Bank of Vietnam (SBV), Nguyen Van Giau.

Mr Giau made the statement at the Asia Microfinance Forum 2008 which was held at Melia Hotel in Hanoi from August 26-29 under the theme “Microfinance in the 21st century: Future Trends and Opportunities”.

The forum was attended by financial experts and representatives from over 20 countries, making it one of the most significant microfinance events in the region and the largest international microfinance in Vietnam so far.

The SBV Governor said the poverty rate dropped to 14 percent in 2007 from 1993’s figure of 58 percent. About 70 percent of Vietnam’s population are living in rural areas and have low income in comparison with international standards. The increase in poor houses will pose challenges to the nation’s social policies and welfare, he added.

Mr Giau noted that the SBV has made a great effort in adjusting monetary polices and implementing the Government’s measures to curb inflation and stabilise the macro-economy. The Asia Microfinance Forum 2008 is an important event to seek solutions for reducing poverty and boosting cooperation among Asian countries in the field of finance.

The four-day forum, jointly organised by PlaNet Finance Group, the European Union and the SBV, will focus on the challenges and innovations that will have the greatest impact on microfinance in the coming decades and provide a vision fỏ the future of microfinance, especially in Asia.

Speaking at the opening ceremony, former State Vice President Truong My Hoa said that the forum is of great significance to Vietnam’s current cause of national industrialisation and modernisation. Vietnam ha gained remarkable achievements in poverty reduction over the past time, and is trying to reduce the poverty rate to 10 percent in 2010. This is not an easy task for microfinance organizations in particular and for the whole nation in general in its international economic integration process, she noted.

According to Chandula Abeywickrema, Chairman of the Banking with the Poor Network (BWTP) and Deputy Managing Director of Sri Lanka's Hatton National Bank, said that there is growing awareness of the benefits that microfinance partnerships can produce. It can broaden the range of services available to the poor. Microfinance institutions often have excellent access to poor clients in remote places. By entering into partnerships with others they can help increase their clients' access to services and have a meaningful impact on their livelihoods, he said.

The Asia Microfinance Forum 2008 aims to identify future challenges and opportunities arising from areas such as financing and investment, new technologies, and environmental issues. It will encourage the effective development of innovative microfinance products and approaches between and among stakeholders in Asia, as well as strengthening partnerships and cooperation among microfinance service providers, financiers and regulators in the region.

Source: VOV