The Interactive Relationship between productivity and social performance of formal microfinance institutions in Vietnam

Abstract

 Activities of microfinance institutions with the goal of improving access to financial services for microfinance customers and along with operation sustainability of microfinance institutions. In particular, productivity and social performance are the factors affecting activities and the goals of microfinance institutions. This paper analyzes the interaction between the productivity and social performance of formal microfinance institutions, that were licensed by the State Bank of Vietnam. Through regression analysis of the panel data carried out in the period of 2010- 2017, this study shows that productivity and social performance have a relationship to interact with each other. Based on the research results, this paper proposes recommendations to strengthen the interaction between the productivity and social performance in order to contribute to ensuring social objectives, increasing income and operation sustainability of formal microfinance institutions in Vietnam.