About Microfinance and Community Development Institute (MACDI)

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The Microfinance and Community Development Institute (MACDI) is a not-for-profit non-governmental organisation that was established in 2007.Through its microfinance programme Microfinance Fund for Community Development (MFCDI) it has been providing loans to low-income sectors of the population, primarily women, since 2008. Its head office is in the city of Hanoi and most of its activities are in northern and central Vietnam. While MFCDI focuses on microfinance, MACDI undertakes a wider range of development interventions, particularly undertaking research and publicising the results, promoting tourism, and providing training related to gender and domestic violence, sustainable agriculture, sanitation and environmental protection, food security, biogas and climate change.


What is MACDI's mission?

MACDI’s mission is to provide microfinance services with an emphasis on lending to the rural poor and low-income individuals and groups and small and medium enterprises to improve their living standards and realising their business goals.


What types of financial services does MACDI provide?

Mostly MACDI provides individual loans through joint liability groups for periods of between 3-36 months, most commonly loans are provided for between 6-12 months and used for purchasing agricultural inputs and animal husbandry. More than 90% of its borrowers are women.


How much interest does MACDI charge?

Microfinance institutions (MFIs) charge higher rates of interest for several reasons. Firstly, the administrative costs of making many small loans are much higher than making fewer larger loans; secondly, they take more time assessing the feasibility of applications and thereby reducing risk because borrowers cannot offer traditional forms of collateral nor do they have salaried incomes; thirdly MFIs often operate in geographically remote areas with low population densities and this means that they incur greater operational costs; and fourthly they often accompany loans with a range of training and technical advice. In addition, inflation is generally higher than in countries such as the UK. The rate of inflation in Vietnam can be found below. MACDI charges an interest rate of 1% per month on all loans, except those given for construction of biogas plants which attract a rate of 0.5-0.8% depending upon the length of the loan. Rates are flat in urban areas and declining in rural areas. There is a standard application fee of 5,000 Vietnamese Dong (about US$0.25) for all loans.


Does MACDI provide any training?

Yes, MFCDI does undertake extensive training on non-finance related matters such as promoting awareness of health issues, sustainable agriculture, financial management for the poor, sanitation and environmental protection, business management, domestic violence and gender within the same communities that receive loans. It has specialised training staff employed for this purpose.


Where can I find out more information about MACDI?

MACDI maintains an informative website and also posts data on Mix Market.


MACDI: Basic facts and figures

Full name:   Microfinance and Community Development Institute
Address:   No 15, 22 -324 alley, Thuy Khune Street, Tay Ho, Hanoi, Vietnam
Established:   2007
Proportion of loans given to women:   93%
Average loan size:   US$221
Total number of active borrowers:   4,608
Outstanding loans portfolio:   US$1,020,173
Portfolio at Risk (PAR) at 30 days:   1.70%

This information was updated in June 2018

Vietnam: Basic facts and figures

Capital:   Hanoi
Official language:   Vietnamese
Currency:   Vietnamese Dong
Population:   94,44 million
Life expectancy at birth:   73.06 years
Adult literacy rate:   94.5%
Access to improved water source:   98%
Human Development Index ranking:   116 (out of 188 countries)
GDP per capita:   US$2,052.3
Inflation:   1.27%
Infant mortality rate:   18 per 1,000 live births

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