In most Asian countries including Vietnam, inadequate access of small farmers and microentepreneurs including women and the poor to effective financial services presents a major challenge. Such services must include facilities to deposit microsavings, access to microcredit for production, consumption and emergencies, and the provision of some basic insurance. Only viable financial institutions with sound practices will be able to respond to the evergrowing demand of the microeconomy for such services and to contribute to its growth. They may be initated by banks, governmental or nongovernmental development organizations. They may start with any appropriate legal form, be it informal or semiformal, and might eventually be upgraded to the status of a local bank.
Sound practices are crucial to the sustainability of microfinancial services.