Technical Cooperation
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- Technical Cooperation
- Technical Cooperation for Vietnam Bank for Social Policies
JFC-Micro cooperates with financial institutions, which are trying to overcome several challenges, in developing countries by providing its know-how in MSME finance. JFC-Micro conducts seminars in their countries and in Japan based on collaboration with ODA implementing organizations, etc.
Technical Cooperation
for Vietnam Bank
for Social Policies
JFC-Micro has provided technical cooperation for Human Resource Development to Vietnam Bank for Social Policies (VBSP) as an ODA project of Policy Research Institute (PRI) of Ministry of Finance (MOF), Japan.
Outline of VBSP
In the past decade, Vietnam has experienced the rapid transition to the market economy. The Vietnamese government has focused on the promotion of small businesses as one of the top priorities and accelerated to develop the financing system for them, in order to realize the poverty reduction by increasing the employment.
Under these circumstances, VBSP, the successor to the Vietnam Bank for the Poor, has been expanding its lending for the poor and small businesses.
| Organization | Government financial institution |
|---|---|
| Objective/ Purpose | Offering funds for the poor and small businesses |
| Established | October 2002, by a decision of the Prime Minister (VBSP has started its operations since January 2003) |
| Branch offices | 63 Branch Offices and 618 Transaction Offices |
| Employees | 8,800 |
| Outstanding Loans | Approximately USD 4,331 million |
(As of December 31, 2010)
Background of JFC-Micro's Technical Cooperation
Although VBSP started social policy-based finance for small businesses, it has faced significant problems of lacking practical credit analysis know-how since established.
Against this background, VBSP requested PRI of MOF and JFC-Micro to convey credit analysis techniques. Therefore, since June 2003, JFC-Micro has provided VBSP with its experience and know-how accumulated for about 60 years. That is quite effective for VBSP that has large portion of inexperience staff.
JFC-Micro's activities for VBSP
<Phase I> Improvement of VBSP staff's ability of credit analysis, etc.
February 10 - 19, 2003
Preliminary survey
NLFC (present JFC-Micro) conducted field survey in order to figure out current situation and needs of VBSP and to discuss the possibility of technical cooperation.
June 17 - 18, 2003
Conference on technical cooperation to VBSP and signing ceremony on Record of Discussion (RD)
Mr. Usui, Governor of NLFC (present JFC-Micro) and Mr. Kawai, Executive Director of PRI, MOF (at the time) agreed that NLFC (present JFC-Micro) would provide technical cooperation for next two years as an ODA project of PRI at the conference held in Hanoi.
October 13 - 21, 2003
The first Seminar in Vietnam
NLFC (present JFC-Micro) held "Small businesses Finance Seminar" in Hanoi, Da-nang, and Ho Chi Minh City, for branch managers and directors of credit analysis section of VBSP for two days each. A total of 135 members of VBSP participated in this seminar and learned credit analysis techniques for Micro and Small Enterprises (MSEs) through lectures including case studies.
February 4 - 20, 2004
The first Seminar in Japan
NLFC (present JFC-Micro) accepted 21 members of VBSP including branch managers and executives of the head office, who were selected from the participants on the first seminar held in Vietnam. For three weeks, they attended various lectures on small business finance practices and visited NLFC (present JFC-Micro)'s branch offices and its customers as field surveys.
May 18 - 21, 2004
Interim Evaluation
NLFC (present JFC-Micro) conducted field surveys in order to evaluate the effects of technical cooperation for VBSP at the end of the first year of this program.
October 05 - 14, 2004
The second Seminar in Vietnam
NLFC (present JFC-Micro) held "Small Business Finance Seminar" in Hanoi and Ho Chi Minh City, for 92 participants from branch managers and middle level staff of credit analysis section for three days each. NLFC (present JFC-Micro) transferred more practical credit analysis techniques through lectures including case studies and role-playings.
February 21 - March 04, 2005
The second Seminar in Japan
NLFC (present JFC-Micro) accepted 17 members of VBSP including 13 branch managers and 4 other members from the head office, who were selected from the participants on the second seminar held in Vietnam. They attended various lectures on small business finance and visited NLFC (present JFC-Micro)'s branch offices and its clients as field surveys.
May 23 - June 01, 2005
Evaluation of technical cooperation
NLFC (present JFC-Micro) evaluated the effects of technical cooperation for the past two years. NLFC (present JFC-Micro) members visited three VBSP's branch offices located in the northern, central and southern area of Vietnam, and confirmed that NLFC (present JFC-Micro)'s know-how has been of use to them to develop credit analysis techniques. As further technical cooperation, NLFC (present JFC-Micro) and PRI will support VBSP to develop "Credit Analysis Materials" consisting of (1) Credit Analysis Sheet, (2) Guide for Credit Analysis with the Job Creation Program, and (3) Collection of Credit Analysis Case Studies with the Job Creation Program.
<Follow-up> Creation of "Credit Analysis Materials"
October 3 - 7, 2005
Guidance for developing "Credit Analysis Materials" in Vietnam
Under NLFC (present JFC-Micro)'s guidance, VBSP has actively developed "Credit Analysis Materials" above. In this mission, NLFC (present JFC-Micro) staff had meetings with staff members of Credit Department and International Cooperation Department of VBSP and gave necessary instructions for these materials.
February 21 - 23, 2006
Follow-up Seminar on Credit Analysis Materials in Vietnam and signing ceremony on RD
Taking the occasion that VBSP completed "Credit Analysis Materials" above, NLFC (present JFC-Micro) and PRI held "Follow-up Seminar" for instructing VBSP branch managers on the usage of these materials. Prior to the seminar, NLFC (present JFC-Micro), PRI, State Bank of Vietnam (SBV), and VBSP agreed on the further technical cooperation in the next two years as Phrase II.
Outcome of Phase I "Credit Analysis Materials"
<Phase II>Dissemination of "Credit Analysis Materials"
June 5 - 16, 2006
The First Seminar in Japan
NLFC (present JFC-Micro) accepted 16 members of VBSP including 12 branch managers and 4 other members from the head office. In this seminar, they mainly attended the lectures on Loan management and on Loans to newly established enterprises. In addition, they visited NLFC (present JFC-Micro)'s branch offices and its clients as field surveys and learned how to evaluate MSEs for two weeks.
October 16 - 28, 2006
The first Seminar in Vietnam
NLFC (present JFC-Micro) held "Small Business Finance Seminar" for VBSP in Hanoi, Da-nang, and Ho-Chi-Minh. This local seminar was held for 138 members who represented transaction offices and staff of head office. NLFC (present JFC-Micro) transferred them practical credit analysis techniques using "Credit Analysis Materials". Participants actively took part in the case-study discussion on evaluating Micro and Small Enterprises (MSEs) in Vietnam.
March 6 - 9, 2007
Interim Evaluation
NLFC (present JFC-Micro) conducted field surveys in order to evaluate the dissemination of technical cooperation to VBSP in the first year. The staff confirmed that it had been widely disseminated to the whole of VBSP by the efforts of the seminar participants, etc.
June 11 - 22, 2007
The Second Seminar in Japan
NLFC (present JFC-Micro) accepted 11 branch managers and 5 other members from the head office of VBSP. In this seminar, NLFC (present JFC-Micro) lectured how to evaluate Micro and Small Enterprises (MSEs) in Vietnam in addition to the know-how on Loan management and Loans to newly established enterprises. Moreover, NLFC (present JFC-Micro) presented its important role in the local economy through field surveys on NLFC (present JFC-Micro)'s local branch office and its clients.
October 24 - November 2, 2007
The second Seminar in Vietnam
NLFC (present JFC-Micro) held "Small Business Finance Seminar" for VBSP in Ho-Chi-Minh, Da-nang, and Hanoi. This local seminar was held for 138 members who represented transaction offices and head office staff. The participants actively took part in the seminar program such as a case study evaluating real Vietnamese enterprise. In addition, NLFC (present JFC-Micro) visited VBSP's branch office and transaction office. Through this site survey, NLFC (present JFC-Micro) confirmed that they have effectively utilized "Credit Analysis Materials", which VBSP completed in January 2006 under NLFC (present JFC-Micro) and PRI's support, in the daily operation.
May 13 - 15, 2008
Final Evaluation
NLFC (present JFC-Micro) and PRI staff members conducted field surveys to confirm the achievement of technical cooperation (Phase II) and to evaluate the project as a whole.
<Phase III>Establishment of an independent training course on credit analysis
February 17 - 20, 2009
Preliminary survey
JFC-Micro dispatched a mission with PRI in order to investigate the possibility of the next technical cooperation project. The mission team conducted hearings with executives of VBSP, as well as visited VBSP's training center, which was established in 2007, and Hanoi Branch.
November 4 - 6, 2009
Signing ceremony on RD and the first Seminar in Vietnam
JFC-Micro and other three institutions (PRI, VBSP and State Bank of Vietnam) agreed on the further technical cooperation lasting up to next two years. Based on this agreement, JFC-Micro conducted the first seminar in Hanoi. In this seminar, JFC-Micro gave lectures on credit analysis and discussed approaches for the project goal with VBSP.
March 9 - 12, 2010
The second seminar in Vietnam
JFC-Micro held a seminar for the training center (TC) staff who are supposed to conduct a lecture on credit analysis for newly recruited employees. Following TC staff's lectures as a rehearsal, JFC-Micro gave them feedback. In addition, JFC-Micro explained how to make better lecture materials, etc.
October 26 - 28, 2010
Interim Evaluation
VBSP introduced a lecture on "credit analysis methods for small enterprises" in the training courses for newly recruited staff. JFC-Micro surveyed the past achievements of this project through observing the lecture and interviewing with VBSP staff.
May 24 - 27, 2011
Seminar in Japan
JFC-Micro accepted seven staff from VBSP and conducted a 4-day seminar in Japan. They learned the system of human development and training programs from human resource development department of JFC-Micro in order to improve their training program.
October 19 - 21, 2011
Final Evaluation
JFC-Micro observed a training course on credit analysis and discussed an achievement of this project. All related institutions confirmed that VBSP conducted an independent training course on credit analysis based on JFC-Micro's know-how.
Voice from Foreign Financial Institutions
Ms. Ha Thi Hanh / General Director, Vietnam Bank for Social Policies
NLFC is the first institution that has transferred its know-how and expertise to VBSP, established in January 2003.
After reaching agreements on the contents of technical cooperation in June 2003, NLFC has held seminars 6 times in both Japan and Vietnam. In seminars, NLFC has conducted not only lectures but also practical roll-playing and case-studies, and transfer its over 55 years' experience to us so that we can easily understand.
The reason why NLFC's technical cooperation is useful is that they have made efforts to adjust their valuable experience in Japan to Vietnamese and VBSP's ways. As the result, at the end of 2005, under NLFC's guidance, we completed "Credit Analysis Sheet" and "Credit Analysis Manual", and introduced them to all branch offices. This is the first time for VBSP to complete "Credit Analysis Manual", which could be also useful for staff training. From this point, we can say that this technical cooperation is the most effective one. Moreover, in February 2006, we reached agreements on further 2 years' technical cooperation, which would transfer know-how regarding loan management and loans to newly established enterprises, in addition to credit analysis techniques.
As I heard that NLFC's role for supporting Micro and Small Enterprises (MSEs) was recognized to be necessary in the argument over the reform of government financial institutions in Japan, I am glad as if it were our case as an institution with same policy views. We would do our best in order to learn NLFC's know-how as much as possible from now on.