About Thanh Hoa Microfinance Institution (THMFI)
Thanh Hoa Microfinance Institution (THMFI) provides loans, savings, and insurance to low-income and disadvantaged sectors of the population in Thanh Hoa province in the North Central Coast region of Vietnam. It was first established in 1998 through the collaboration of Thanh Hoa Provincial Women’s Union, Thanh Hoa Provincial People’s Committee, and a donation from the international aid organisation Save the Children United States. It is now a completely independent microfinance organisation though. It is licensed to provide financial products and services and regulated by the State Bank of Vietnam. Most of its clients (89%) are women and almost 11% of clients are from ethnic minorities.
What is THMFI’s mission?
THMFI’s mission is to be 'a microfinance organisation working for community development objectives, providing financial and non-financial service, friendly, effectively to the poor, low-income households and microenterprises in Vietnam'.
What types of financial services does THMFI provide?
THMFI provides business and consumption loans, savings accounts and it partners with an insurance company to provide life insurance and other insurance products to its clients.
How much interest does THMFI 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.
The most representative loan product of THMFI funded by Lendwithcare attracts an Annual Percentage Rate (APR)* of 21.5%
*The Annual Percentage Rate (APR) is a standard way of expressing the cost of a loan that allows for comparison between loans. It includes annual interest, insurance, and fees that the borrower must pay, and it is expressed as a percentage of the amount borrowed.
Does THMFI provide any training?
THMFI works with other organisations to provide training to its clients in areas such as financial literacy, the importance of savings, business planning, and marketing.
Where can I find out more information about THMFI?
Further information about THMFI is available from the organisation's website here.
THMFI: Basic facts and figures (June 2025)
Full name: | Thanh Hoa Microfinance Institution |
Established: | 1998 |
Average loan size: | US$1,645 |
Number of active loans: | 21,033 |
Outstanding loan portfolio: | US$20,501,573 |
Portfolio at Risk (PAR) at 30 days*: | 0.38% |
Proportion of loans given to women: | 83% |
Proportion of loans given in rural areas: | 72% |
*PAR30 is a commonly used metric that provides an insight into the quality of an MFI's loan portfolio, which is generally its major asset and therefore its greatest source of risk. It is computed by dividing the amount of delinquent loans greater than 30 days over the total amount of the loan portfolio.
Vietnam: Facts and figures (August 2025)
Population: | 101 million* |
Currency: | Vietnamese dong* |
GDP per capita: | US$4,717* |
Inflation (GDP deflator): | 1.4%* |
Life expectancy: | 75 years* |
Percentage of population living on less than $3.00 a day: | 1.6%* |
Human Development Index ranking: | 93 (out of 193 countries)** |
Infant mortality rate (per 1,000 live births): | 14*** |
Percentage of population using safely managed drinking water | 58%**** |
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