Macroeconomic determinants of operational self-sufficiency amon formal financial institutions: The case of Vietnam

Abstract

This paper analyzes the impact of macroeconomic factors on sustainability of formal microfinance institutions in
Vietnam, focusing on economic growth and inflation. The dependent variable selected to assess the sustainability
of MFIs is operational self-sufficiency (OSS), return on assets (ROA) and return on equity (ROE). Using panel data
regression model, the study shows that, while economic growth has a negative impact on sustainability, inflation
has a positive impact. In addition, the study found a positive relationship between the size of the organization and
the sustainability. The study is structured into 4 parts: (i) Research Overview, (ii) Research model and method,
(iii) Results and discussion (iv) Conclusions and recommendations.