Assessment of microfinance institutions’ outreach in Vietnam through the relationship between the outreach and sustainability

Abstract

Microfinance has been considered as a powerful instrument to fight poverty and create income opportunities for the
low-income population, particularly in developing countries. As we know, the performance of microfinance institution
is based on the two concepts, outreach and sustainability. The microfinance institutions indeed need to be selfsustaining if they are to achieve their outreach goal of providing financial services to the poor. Besides, the greater
depth of outreach has then greatly influenced the financial sustainability of microfinance institutions. It also shows a
positive correlation between outreach and financial sustainability in each microfinance institution.