Marketing Plan

Project Number: 42492-012
November 2011
Viet Nam: Technical Training Manuals for

Microfinance Institutions in Vietnam
Advance Course in Business Planning: Planning for

Transformation
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COURSE OUTLINE
Course ADVANCE BUSINESS PLANNING COURSE FOR MFIs – BUSINESS

Name PLANNING FOR TRANSFORMATION
Target Board Members, Managers, Chief Accountant, Credit Manager, Branch
Participants Manager
Course 2 days
Duration
Learning By the end of the course, the participants are able to:
Objectives  Gain knowledge and skills in developing business plans geared
towards formalization of MFIs.
Course  Opening Activities  Overview of Business Planning
Outline o Welcome Remarks Concepts and Practices
o Introductions: Trainer, Guests, o Changing Business
and Participants Environment
o Project Overview o Microfinance Industry
o Leveling of Expectations Development
o Training Objectives and o Business Planning
Agenda Processes
o House Rules
 Development of Business Plan  Development of Business Plan
o Vision and Mission o Setting Objectives
Statements o Solution Systems
o SWOT Analysis o Roadmap and Financial
o Analysis of Competition Plan
 Implementation and Evaluation of  Closing Activities
Business Plan o Evaluation
o Implementation and o Closing
Evaluation
o Development of Individual
MFI Business Plan
Delivery Plenary/Lecture; Small Group Discussions; Exercises; Coaching; Post-
Methods Training Test.
Materials Computer, LCD Projector, Flipcharts (A0 Paper), Meta Plan Cards,
Needed Calculators, Paper, Pens, Tapes, Prizes, Stapler, Paper Clips, Training Kit
(Agenda, PPT Presentations, Notepad, Pens, ID), Financial Statements of
MFIs.
Handouts MFI MOM Tien Giang Presentation; Discussion Content; MFI Factsheet 3.4
version
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INSTRUCTIONAL DESIGN AT A GLANCE
Part I OPENING ACTIVITIES

Session 1 Introductions
Activity 1 Registration, Welcome Remarks, and Introductions
Activity 2 Leveling of Expectations
Activity 3 House Rules
Part II BUSINESS PLANNING FOR TRANSFORMATION
Session 1 Overview of Business Planning Concepts and Practices
Activity 4 Changing Business Environment of MFIs
Activity 5 Microfinance Industry Developments
Activity 6 Business Planning Processes of MFIs
Session 2 Development of Business Plan
Activity 7 Vision and Mission Statements
Activity 8 SWOT Analysis
Activity 9 Analysis of Competition
Activity 10 Setting Objectives
Activity 11 Solution Systems
Activity 12 Road Map and Financial Plan
Session 3 Implementation and Evaluation of Business Plan
Activity 13 Implementation and Evaluation of Business Plan
Activity 14 Development of Individual MFI Business Plans
Part III CLOSING ACTIVITIES
Session 1 Wrap Up and Evaluations
Activity 15 Evaluation
Activity 16 Closing
HANDOUT
1 MFI MOM Tien Giang Presentation
2 Discussion Content
3 MFI’s Factsheet 3.4 version (Excel Software for Financial Planning)
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INSTRUCTIONAL DESIGN SCRIPT
PART I OPENING ACTIVITIES

SESSION 1 INTRODUCTIONS
Activity 1 Registration, Welcome Remarks and Introductions
Purpose  To register the participants and distribute the training kit.
 To introduce the ADB/JFPR-SBV Project, the guests, trainers and
participants.
Objectives By the end of the activity, the participants are able to:
 Receive complete set of training kit.
 Know the project, host organizations, guests, trainers, and participants.
Time Materials Steps/Method:
30 minutes Attendance Registration:
Sheet 1. The support staff facilitates the registration of the
Training Kit:: participants and the distribution of training kits at least
- Agenda 30 minutes before the start of the training.
- Notepad 2. The support staff checks completeness of the contents
- Pen of the training kits with the participants.
- ID 3. The support staff ensures participants write their names
- Training on the IDs and wear the IDs at all times during the
Material training.
4. The support staff ensures all equipment, facilities,
supplies and materials required for the training are
available.
10-15 Brief profile of Welcome Remarks: Speech
minutes host 1. The Training Coordinator introduces the host
organizations organizations (SBV, ADB, JFPR, ADB Consultants,
and guests etc.) and guests (if any).
2. The host organizations and guests deliver their
welcome remarks.
Brief profile of Introduction of the Trainers: Speech
the trainers 1. The Training Coordinator welcomes and introduces the
trainers (the lead trainer and co-trainers, if any).
2. The Training Coordinator gives the floor to the lead
trainer to start the training.
Profile of the Introduction of the Participants: Plenary; Small Group
Participants, Discussions
Registration 1. The lead trainer welcomes the participants.
Sheet, 2. The lead trainer asks the participants to introduce
Computer, themselves.
Slide 3. The lead trainer acknowledges each participant and
Presentations, welcomes them to the training.
Flipcharts, 4. When all participants have introduced themselves, the
Stands, Pens, lead trainer takes note of the profile of the participants,
Papers, thanks the participants and moves to the next activity.
Tapes, LCD
Projector
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Activity 2 LEVELING OF EXPECTATIONS
Purpose  To determine what are the participants’ expectations from the training.
 To validate whether these expectations can be met by the training.
 Present their motivations and expectations from the training.
 Know the course agenda and validate coverage of their expectations
with the trainers.
 Identify items or issues that cannot be covered by the training.
10 minutes Computer, Plenary
PPT Slide 2, 1. The support staff provides sheets of paper and pens to
Paper, Pens, the participants.
Flipchart for 2. The lead trainer asks the participants to share their
“Parking expectations from the training by drawing a reflection of
Lot”, Stands, their expectations on a sheet of paper and presenting
Tapes, LCD same to the groups.
Projector 5. The lead trainer acknowledges each participant’s
presentation, summarizes the motivations to attend
PPT Slide 2- and expectations from the training.
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Training Objectives and Agenda:
3. The lead trainer presents the training objectives and
agenda to the participants and validates expectations
that can be covered by the training.
4. The lead trainer also identifies items that cannot be
covered, if any, and places them to the “Parking Lot”.
Note: The Parking Lot is a place where the trainer

can write issues, items or any concern that is
covered by the training. This is visited at the end of
the training to determine whether items have been
covered or need to be discussed in other venue.
5. The lead trainer summarizes the participants’ outputs

and asks the participants for more inputs or questions.
6. When there are no more questions, the lead trainer
thanks the participants and moves to the next activity.

Activity 3 HOUSE RULES
Purpose To ensure that the participants get the optimum learning from the course.
 Define and agree on appropriate behaviors for the duration of the
training.
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 Define and agree on appropriate penalties for violations of the house
rules.
5-10 minutes Flipcharts, Plenary
Stands, 1. The lead trainer asks the participants what could help
Pens, Tapes them achieve optimum learning from the training and
lists them on a flipchart.
2. The lead trainer may initiate discussions by providing
standard or frequently mentioned house rules. Such
house rules may include: coming on time, turning off or
placing on silent mode the mobile phones, participating
actively, respecting others, etc.
3. The lead trainer verifies acceptability of the responses
with the participants by asking them to agree on each
item.
4. When there are no more additions, the lead trainer
shares his expectations if not yet covered by the listed
items.
5. The lead trainer thanks the participants and closes the
session by asking the participants to be always
reminded of the house rules for the duration of the
training.
6. The lead trainer posts the flipchart to the wall and
moves to the next activity.
Note: Having completed the introductions, the expectations

and the house rules, the participants are now ready to start
with the main topics in the course.
PART II BUSINESS PLANNING FOR TRANSFORMATION

Session 1 Review of Business Planning Concepts and Practices
Activity 4 Changing Environment of MFIs in Vietnam
Purpose To introduce the changes in business environment of MFIs in Vietnam
 Refresh understanding of the business planning concepts and practices in
MFIs.
 Understand the changing environment of the MFIs and how to cope with
this.
Time: Materials: Steps/Method:
PPT Slide 5-7, 1. The lead trainer reviews with the participants the business
Paper, Pens, planning concepts and practices in MFIs.
Flipchart, 2. The lead trainer focuses discussions on the business
Stands, environment of the MFIs particularly, on the Sector
Tapes, LCD environment and Competition environment.
Projector 3. The lead trainer asks the participants what elements in the
business environment affect the MFIs. The lead trainer
summarizes responses and validates appropriate
responses from the participants. The responses may
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include: economic, culture, population, technique, political,
global, etc.
4. The lead trainer asks the participant their understanding of
the business environment of MFI’s in the past and present
and how this has changed. The lead trainer lists down the
responses and compares with the others to determine a
pattern such as:
In the past:
• Strategy based on internal information
• Market structure is set up
• Many elements can be calculated
• Stable forecast
At the present
• Carefully consider the environment while developing
and implementing business strategy
• Fluctuating market
• Unstable future
• Unpredictable tendencies
5. The lead trainer concludes the discussions with a
presentation of some actors in the business environment,
highlighting the category, form and number of credit &
non-credit institution operating in Vietnam.
6. The lead trainer asks the participants if there are
questions. If there are no questions, the lead trainer

Activity 5 Microfinance Industry Developments in Vietnam
Purpose To introduce the new developments in the microfinance industry in
Vietnam.
 Understand the legal framework and other developments in the
microfinance industry in Vietnam.
PPT Slide 8-9, 1. The lead trainer asks the participants their understanding
Paper, Pens, of the legal framework related specifically to the
Flipchart, transformation of MFIs in Vietnam. The lead trainer
Stands, summarizes responses which may include: Decree 28,
Tapes, LCD Decree 165, Decree 148 (77), SBV Circulars 02, 07, 08,
Projector and 15, etc.
2. The lead trainer validates appropriate responses and
MFI MOM moves to the next activity, an exercise:
Tien Giang 3. The lead trainer asks the participants to form groups of
Presentation three people and discuss the following:
a. Why do MFIs need to be transformed?
b. What are the benefits of transformation?
c. What are the activities to be conducted for
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transformation of MFIs?
4. The lead trainer provides the groups 5 minutes to discuss
and 3 minutes to present their outputs. The lead trainer
asks for two volunteer groups to present while the other
groups observe and provide feedback.
5. The lead trainer summarizes and validates the
appropriate responses which may include:
 For the 1st question: It is because of: legal
requirements, need to be more professional, the donor
requested, would like to be a independent and
professional MFI, would like to expand their MFI,…
 For the 2nd question: Because the MFIs can mobilize
saving from public, can borrow loan from other credit
institution, can mobilize more investors, sustainable …
 For the 3rd question: The activities are: Transform the
management system, capacity building for staff, recruit
professional staff, study legal requirements.
questions. If there are no questions, the co-trainer
presents the experiences of MFI MOM Tien Giang on the
transformation process, its advantages and challenges.

Activity 6 The Business Planning Processes
Purpose To review the businesses planning processes of MFIs.
 Refresh understanding of the business planning process.
65 minutes Computer, Plenary; Games
PPT Slide 10- 1. The lead trainer asks the participant their understanding of
11, Paper, the business planning processes. The lead trainer
Pens, summarizes their responses and presents the business
Flipchart, planning process.
Stands, 2. The lead trainer then asks the participant their
Tapes, LCD understanding of a good business plan. The lead trainer
Projector summarizes the responses and emphasizes that:
“Good business plan need to be: Easy to understand;
Appropriate; Sustainable; Feasible and Transparent.”
questions at this point. If there are no questions, the lead
trainer moves to the next activity, exercises.
4. The lead trainer asks the participants to form five groups
and discuss the requirements of the MFIs for sustainable
development. The lead trainer provides the groups with 30
minutes to discuss and 3 minutes to present.
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5. The lead trainer asks two volunteer groups to present
their outputs while the other groups observe and provide
feedback.
6. The lead trainer invites the co-trainer to share their
experiences with the participants.
7. The lead trainer summarizes the points raised during
presentation and concludes the discussions.
thanks the co-trainer and the participants and moves to
the next activity.

Session 2 Development of the Business Plan
Activity 7 Vision & Mission Statements
Purpose To introduce the vision & mission of MFI
Objectives By the end of the activity, the participants are able to :
 Understand the principles behind the vision & mission of MFIs.
PPT Slide 12- 1. The lead trainer asks the participants to share their
18, Paper, MFI’s vision & mission. The lead trainer summarizes the
Pens, responses from participants and emphasizes that:
Flipchart,  To develop vision, the MFI have to answer the
Stands, question: “What kind of organization does the MFI
Tapes, LCD want to become?” and the vision should shared
Projector among all stakeholders in order to: Create unity of
interests; Reduce daily monotony; Create
Handout: opportunities and challenges.
Discussion  To develop the mission, the MFI have to answer the
Content question: “What is our business?” and mission are:
Statement of long-term objectives; Differentiating the
organization with other organizations; Determine why
the organization should exist; Statement of trust;
Statement of purpose; Statement of philosophy;
Statement of principles of operations .
moves to the next activity, an exercise.
3. The lead trainer asks the participant to keep the same
groups as the last exercise. The lead trainer asks the
groups to develop the Vision and Mission Statements of
a sample MFI.
4. The lead trainer provides 30 minutes for the groups to
discuss and 5 minutes to present. The lead trainer asks
two volunteer groups to present while the other groups
observe and provide feedback.
5. The lead trainer summarizes points from the
presentation and concludes the discussions with the
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presentation of actual Vision and Mission statements of
a sample MFI MOM Tien Giang.
the next activity.

Activity 8 SWOT Analysis
Purpose To introduce the SWOT analysis technique to complement the
business planning process.
 Understand the concepts and practice SWOT analysis technique.
90 minutes Computer, Plenary; Small Group Discussions
PPT Slide 19- 1. The lead trainer asks the participants the need to do
20, Paper, SWOT analysis. The lead trainer summarizes responses
Pens, and emphasizes that:
Flipchart, SWOT analysis:
Stands,  Make use of strengths to take opportunities
Tapes, LCD  Make use of strengths to avoid challenges
Projector  Improve weaknesses by taking chances
 Reduce weaknesses
Handout:  Avoid risks
Discussion 2. The lead trainer concludes the discussions with a
Content presentation of SWOT analysis.
moves to the next activity, exercises.
4. The lead trainer asks the participants to form five
groups and analyze the MFIs’ competition. The lead
trainer provides the groups 15 minutes to discuss and 5
minutes to present their outputs.
5. The lead trainer asks two volunteer groups to present
while the other groups observe and provide their
feedback.
6. The lead trainer summarizes the points raised, validates
the appropriate responses and concludes the
discussions.
8. The lead trainer asks the participant to maintain the
same groups as the last exercise and discuss the
content of the handout.
9. The lead trainer provides the groups 30 minutes to
complete the exercise and 3 minutes to present. The
lead trainer asks for two volunteer groups to present
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while the others observe and provide feedback.
10. The lead trainer summarizes the points raised and
emphasizes that:
 Strengths: main competitive advantages; main
competitive capabilities; main income – generating
activities; best activities
 Weaknesses: business areas not available;
insufficient resources; insufficient activities; reason
for business loss; activities/ areas need to be
improved.
 Opportunities: main advantages; areas where there
is no competitors; new technology; new demands by
customers
 Challenges: Obstacles to be overcome; competitors
with attacking strategy; successful competitors;
unfavorable economic conditions; government laws
and policies. Changes in business environment,
factors vulnerable to losses.
concludes the discussion, thanks the participants and
PART II BUSINESS PLANNING FOR TRANSFORMING MFIs

Activity 9 Analysis of Competition
Purpose To practice to analysis competitive of MFI
Objectives By the end of the activity, the participants will have:
 Able to analysis competitive of the MFI
60 minutes Paper, Pens, Plenary; Small Group Discussions
Flipchart, 1. The lead trainer asks the participant to maintain the same
Stands, groups as the last exercise and discuss the content of the
Tapes, LCD handout.
Projector 2. The lead trainer provides the groups 30 minutes to
complete the exercise and 3 minutes to present. The lead
Handout: trainer asks for two volunteer groups to present while the
Discussion others observe and provide feedback.
Content 3. The lead trainer also invites the co-trainer to share
experiences of the competition of MOM – Tien Giang to
the groups.
concludes the discussion, thanks the co-trainer and the
participants, and then moves to the next activity.
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Session 2 Develop Business Plan
Activity 10 Setting Objectives for a Business Plan
Purpose To introduce concepts of setting objectives for a business plan.
 Understand the concepts and practice setting objectives for the Business
Plan.
Time: Materials: Steps:
75 minutes Computer, Plenary; Small Group Discussions
PPT Slide 21- 1. The lead trainer asks the participant to maintain the
22, Paper, same groups as the last exercise and discuss the
Pens, content of the handout.
Flipchart, 2. The lead trainer asks the participants to share the
Stands, objectives of their MFIs. The lead trainer summarizes the
Tapes, LCD responses from the participants.
Projector 3. The lead trainer then presents the format that can be
used to develop the MFI’s objectives. The lead trainer
Handout: asks the participants to develop their MFIs objectives
Discussion using the format presented.
Content 4. The lead trainer provides the groups 30 minutes to
5. The lead trainer also invites the co-trainer to share
the groups.
6. The lead trainer summarizes the points and concludes
the discussions with:
“The objective is aligned with Vision and Mission;
According of areas of operations; According to
organizational functions/model; Financial/operational
indicators.”

Activity 11 Solution System
Purpose To introduce the concept of solution system for MFIs.
 Understand the concepts of solution system for the MFIs.
75 minutes Computer, Plenary; Small Group Discussions; Exercises
PPT Slide 23- 1. The lead trainer presents and explains the solutions
24, Paper, system to the participants.
Pens, 2. The lead trainer asks the participants if there are
Flipchart, questions. If there are no questions, the lead trainer
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Stands, moves to the next activity.
Tapes, LCD 3. The lead trainer asks the participant to maintain the same
Projector groups as the last exercise.
5. The lead trainer then presents the format that can be
Handout: used to develop the MFI’s objectives. The lead trainer
Discussion asks the participants to determine the solutions for the
Content MFIs based on the presentation.
8. The lead trainer also invites the co-trainer to share
the groups.
9. The lead trainer summarizes the points and concludes
the discussions with emphasis on the following:
Strategic plan
 Allocate resources
 Set up List of activities
 Identify mission
 Set objectives
Marketing strategy
 Compete to deliver products and services in the
market
 Select market, market segments
 Set up marketing mix
• And solution can solve problem of:
 ORGANIZATION
 HUMAN RESOURCE
 MARKETING
 RISK CONTROL
 FINANCIAL
 INFORMATION SYSTEM

Activity 12 Road Map & Financial plan
Purpose To introduce the concepts of road map and financial plan for MFIs.
 Understood the concepts and practice developing roadmap and financial
plan for the MFIs using the Excel Software.
150 Computer, Plenary; Small Group Discussions; Exercises
minutes PPT Slide 25, 1. The lead trainer introduces the Excel software for
Paper, Pens, financial planning (Factsheet 3.4 version) to the
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Flipchart, participants.
Stands, 2. The lead trainer asks the participants if there are
Tapes, LCD questions at this point. If there are no questions, the
Projector lead trainer moves to the next activity, exercise.
3. The lead trainer asks the same groups to develop the
Excel implementation process (road map) for MFIs. The lead
software of trainer provides the groups 20 minutes to discuss and 5
Financial minutes to present
Planning 4. The lead trainer asks for two volunteer groups to
(Fact Sheet present while the other groups observe and provide
3.4 version) feedback.
5. The co-trainer presents the experiences of MFI MOM –
Tien Giang. The lead trainer summarizes the points
raised and concludes the discussions.
7. The lead trainer asks the same groups to develop the
financial plan for the MFIs. The lead trainer provides the
groups 20 minutes to discuss and 5 minutes to present
8. The lead trainer asks for two volunteer groups to
present while the other groups observe and provide
feedback.
9. The co-trainer presents the experiences of MFI MOM –
Tien Giang. The lead trainer summarizes the points
raised and concludes the discussions.
the next activity.

Session 3 Implementation and Evaluation of Business Plan
Activity 13 Implementation and evaluation of business plan of MFIs.
Purpose To introduce to the process of implementation and evaluation of
business plan of MFIs.
 Understand the process and practice implementation and evaluation of
business plan of MFIs.
30 minutes Computer, Plenary; Small Group Discussions; Exercises
PPT Slide 26- 1. The lead trainer asks the participant the requirements for
32, Paper, implementation of business plans. The lead trainer
Pens, summarizes the responses from the participant and
Flipchart, emphasizes that:
Stands,  “A best strategy cannot be successful if it is not well
Tapes, LCD performed!” (Bernard Riemann).
Projector  Implementing strategy means make/ accept changes
 Less than 10% of strategies are successfully
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implemented
 Errors in implementing the strategy:
 Errors in market segmentation
 High costs for results obtained
 Failure in competition…
 Successful implementation of strategy:
 Good products, services
 Availability of capital
 High value added and technological content
 Efficient and transparent MIS
2. The lead trainer then asks the participant the indicators
being used in the evaluation of business plans. The lead
trainer summarizes responses which may include:
Consistency; Consonance; Feasibility; Advantage.
questions at this point. If there are no questions, the lead
trainer moves to the next activity, an exercise.
4. The lead trainer asks the participants to maintain the
same groups and discuss the challenges/difficulties
encountered in the evaluation.
discuss and then asks the groups to share their outputs.
The responses may include:
 Increase in environment’s complexity
 Difficulty predicting future with accuracy
 Increasing number of variables
 Rate of obsolescence of plans
 Domestic and global events
 Decreasing time span for planning certainty
The trainer emphasize: Strategy Evaluation Should:
 Initiate managerial questioning
 Trigger review of objectives & values
 Stimulate creativity in generating alternatives
6. The lead trainer summarizes the points and then
introduces and explains the contents of evaluation from
slides. The lead trainer invites the co-trainer to present
the actual activities of the MFIs.
concludes the discussions, thanks the co-trainer and the
participants, and moves to the next activity.

Session 3 Individual MFI Business Plan
Activity 14 Development of Individual MFI business plan.
Purpose To practice development of individual MFI business plan.
 Develop the individual business plans for the MFIs.
15
60 minutes Flipcharts, Plenary; Small Group Discussion
Stands, Pens, 1. The lead trainer asks the participant to form groups by
Tapes, organization. The lead trainer asks groups to review all the
Computers outputs of the exercises.
2. The lead trainer asks the groups to develop the business
Handout: plans for their own MFIs.
Discussion 3. The lead trainer provides the groups 30 minutes to
Content complete the exercise and 5 minutes to present the
outputs. The lead trainer asks for two volunteer groups
while the other groups observe and provide feedback.
4. The lead trainer summarizes the responses and
encourages the participants to complete the plan so they
can present to their respective MFIs.
5. The lead trainer asks the groups if there are questions. If
there are no questions, the lead trainer thanks the co-
trainer and the participants, and moves to next activity.
PART III CLOSING ACTIVITIES

SESSION 1 Wrap Up and Evaluations
Activity 15 Evaluations
Purpose To validate whether the training objectives have been met.
 Validate achievement of the training objectives, participants’ training
expectations, and resolve “parking lot” issues.
 Complete the evaluation form.
15-20 Pens, Plenary; Post Training Evaluation
minutes Agenda, 1. The support staff distributes the evaluation forms to the
PPT Slide 3, participants and asks them to fill up the form.
Computer, 2. The support staff provides a short explanation on the
LCD content and how the form should be filled up by the
Projector participants.
Evaluation 3. The support staff collects the forms from the
Forms participants.
4. The training coordinator reviews the training objectives
against the learning experiences of the participants
along with their expectations from the training.
5. The training coordinator reviews the issues listed in the
parking lot, if any and tries to resolve such issues.
6. The training coordinator asks the participants if they
want to share anything to the group.
7. The lead trainer asks the participants if all is clear. If
there are no questions, the lead trainer thanks the
participants and moves to the next activity.
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PART III CLOSING ACTIVITIES
SESSION 1 Closing
Activity 16 Closing Remarks
Purpose To officially mark the end of the training.
 Complete the requirements of the training.
 Receive the certificate of completion.
15-20 Certificates Plenary
minutes 1. The training coordinator requests the representatives of
host institutions (e.g. ADB, SBV) to deliver the closing
remarks.
2. The training coordinator thanks all the people that
supports the delivery of the training (ADB, SBV, PMU,
MFI, others) and thanks the participants for the hard
work and active participation.
3. The hosts’ organization representatives issue the
certificate of completion to the participants.
4. The host, trainers and participants pose for the group
picture.
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PRESENTATION MATERIAL
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HANDOUTS
FORMALIZATION OF MICROFINANCE INSTITUTIONS IN VIETNAM
“Business Planning” Course

Discussing contents for Group 1
Influential factors and prediction of impacts on MFIs in Vietnam
1. Determine content and degree of influence of each factor to MFIs in 3-5 years.
No. Factors Contents and Influence
(1) Economy
(2) Culture, Social
(3) Population structure
(4) Politics/ Laws
(5) Sector Environment
Competitive
(6)
Environment
(7) Technology
(8) Global
(9) Others (if any)
2. Order by the influence of each factor (No. 1 is the most important) and then sum up the
effects of establishment, restructuring and development of MFIs in Vietnam in the next 3-
5 years.
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Regulation on the establishment and licensing of MFIs in Vietnam - Conversion requirements
and issues for developing and implementing business plans
1. Discuss the advantages and difficulties in meeting licensing conditions for MFIs.
Circular 02/2008/TT-NHNN State Bank’s Proposal
1. There is need for small scale financial 1. There is a need to establish and operate a
activities. microfinance organization.
2. There are opinions of People's Committees 2. There is minimum charter capital equivalent to
in provinces and cities. the regulated legal capital.
3. There is minimum charter capital equivalent 3. There is organization and operation Charter of
to the regulated legal capital. micro-finance organizations in accordance with all
4. There are office buildings and facilities, legal regulations.
technology and information systems to ensure 4. There is a feasible business plan for the first
the operation of financial institutions of small three years of operation.
scale. 5. There are administrators, operators and
5. There are administrators, operators and executives meeting the conditions prescribed.
executives having civil act capacity in full and 6. There are members contributing capital to
having professional qualifications in establish a microfinance organization who meet the
accordance with the operation of financial conditions specified.
institutions of small scale. 7. There are office buildings and facilities,
6. There is a feasible business plan for the first technology and information systems to ensure the
three years of operation. operation of financial institutions of small scale.
7. There are foreign forms and elements. 8. There is approval of People's Committees in
provinces and cities.
2. How are the feasible business plan requirements shown in the business plan/ strategy of
MFIs in five years?
Circular 02/2008/TT-NHNN State Bank’s Proposal
a) Operational objectives of financial a) Operational objectives of MFIs;

institutions of small scale; b) Proposed location for activities; planned location
b) Proposed location for activities; planned for setting branches (including new branches and/or
location for setting branches (including new existing branches for MFIs);
branches and/or existing branches for small c) Criteria for MFI customers and expected number
scale financing institutions); of individuals, households satisfying this criteria in
c) Criteria for small scale financial customers proposed area of operation;
and expected number of individuals, d) Expected products and services that are to
households satisfying this criteria in proposed provide to customers, other customers; and
area of operation; expected regulations and conditions for each
d) Expected products and services that are to product or service;
provide to small-scale financial customers, e) Proposed organizational structure and personnel;
other customers; and expected regulations and f) Information and communication technology will be
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conditions for each product or service; used;
e) Proposed organizational structure and g) Risk management systems, internal control
personnel; systems and internal audit integrated with each
f) Information and communication technology business process, solutions for emergency
will be used; situation;
g) Risk management systems, including h) Balance sheet, profit/loss statement, portfolio
testing, internal control systems and internal projection for the next three financial years;
audit; i) The proposed social impact of MFIs in the area.
h) Balance sheet, profit/loss statement,
portfolio projection for the next three financial
years;
i) The proposed social impact of small-scale
financial institutions in the area.
36

Define vision, mission and value system of MFIs
1. Assume a name for the MFI of the group.

2. Discuss and determine vision for the MFI of the group with the following suggestions:
- Vision clearly shows desired future image of MFIs (or desired future state). The vision
should be clearly stated future prospects on the basis of orientation, analysis, long-term
forecasts which are reliable, sound and viable, attractive, engaging all members of the MFI to
trust and hope for the future. Vision is a long-term goal, pointing out the connection between
present and future.
- A good vision should demonstrate:
 Clear, realistic, easy to remember;
 Orientation of course of action towards the future;
 Create incentives;
 Demonstrate strategic thinking based on good and reliable forecast.
3. Discuss and determine mission for MFI of the group with the following suggestions:
- Mission expresses rationale of existence and development of the MFI, is expectation that
the MFI desire to perform based on customer needs and areas of priority / focus.
- Suggested questions for determining the mission of the MFI.
 What products-services does the MFI provide?
 Where and when does the MFI provide those products-services?
 Who are client groups for MFI?
 What are the values of products and services offering to customers?
 What are the competitive advantages of the MFI?
 What are the benefits to the community from the MFI?
4. Discuss and determine value system for the MFI of the group with the following suggestions:
- Value system shows the consistent philosophy of MFI’s development as an
organization on the basis of awareness of the fundamental values of social community. The
value system shows expectation, ideal that all the MFI pursue in the process of formation and
development.
- The contents of the value system can be:
 Important things that the MFI wants to achieve;
 Expectations that the MFI pursues in a changing context and environment;
 Orientation of actions for the MFI;
 Demonstration of attitudes, behaviors of MFIs...
37

SWOT Analysis of MFIs in developing and implementing business plans.
1. Identify at least three competitors in the local area.

2. Perform analysis of strengths, weaknesses with the above competitors according to the
following table of suggestions:
STRENGTHS MFI Competitor1 Competitor 2 Competitor 3
Main competitive advantages
Main competitive ability
Primarily activities that bring income
Best activities
WEAKNESSES
Business areas lacked
Resources lacked
Inefficient activities
Reasons for loss of business
Activities / issues to improve
3. Group Discussion on Opportunities and Challenges according to the suggestions in the

following table:
OPPORTUNITIES Main content

Main favorable trend
Gap has not been joined by rivals
New technology
New demands from customers
CHALLENGES
Obstacles to overcome
Competitors with offensive strategy
Successful competitors
Unfavorable economic conditions
Laws, government policies
Business climate change
Factors susceptible to damage
3. To be successful, which strengths should be developed and which weaknesses should be

overcome or can any other strengths be improved by the MFI of the group? Does the group
need to adjust the vision, mission and value system discussed above?
38

Competitive Analysis.
1. Analyze five competitive forces of MFIs with the following suggestions:
First competitive force- providers

 Level of focus on the supplier.
 Impact of inputs to cost and difference.
 Cost of switching suppliers.
 Availability of alternative inputs
Second competitive force - buyer/ customer
 Base element, the lever of paying for services.
 Service value scale used by customer.
 Information and customer level.
 Level of sensitivity to price of services.
 Ability to identify differences in the products and services.
 Motives, main purposes of customers ....
Third competitive forces- new institutions entering the market
 Advantages of scale and cost.
 Government policies.
 Cost of switching suppliers.
 Access to other distribution channels.
 Preferred products and services expected ...
Forth competitive forces- replacement products
 Cost of conversion to replace the services.
 Tendency of customers to alternative service.
 Utilities and comparative price of new replacement services....
Fifth competitive forces- Current competitors of MFIs
 Barriers to exit from the market.
 Growth rate of industry and centralization of industry.
 Difference in the product.
 Measures to encourage customers....
2. Discuss ways to create competitive advantages for MFIs on the basis of the above analysis (See
example).
Limit the power of suppliers Limit the power of buyers
 Establish partnerships with suppliers  Establish partnerships
 Increased dependency of suppliers on  Increased loyalty and binding
commercial banks  Increase incentives and value
 Set up information on costs and manners of  Eliminate price effects and mediating in the
providers purchase decision
 Acquire providers
Limit the threats from new organizations joining Limited threats from substitute products
the industry
 Raising value of the minimum scale to ensure  Legal activities
39
effective activities  Increasing switching costs
 Creating image, marketing/ brand to create  Making alliances and cooperation
barriers to entry market by improving customer  Survey of tastes/ priorities of clients
engagement  Participate in market of substitute products and
 Protection of intellectual property rights make an impact in that area
 Alliance with related products/ services  Emphasize the differences (real or perceived)
 Tightly binding relationships with suppliers,
customers
 Implementation strategies retaliation
4.5 Limit intra-industry competition
 Avoid price competition; Create difference for products;
 Reduce activities beyond capacity; Focus on different market segments;
Communicate with competitors
40

Identify the objectives of making business plan for MFIs.
1. Discuss and identify the most important objectives of the business plans of MFIs in five years’
time:
- Objectives are to ensure requirements of SMART Goals (Specific, Measurable, Agreed
upon, Relevant, Time-bound).
- Objectives should closely follow the identified vision and mission of MFIs.
- Objective 1: ……..…………………………………………………………………………..
…………………………………………………………………………………………………
…………………………………………………………………………………………………
- Objective 2: ……..…………………………………………………………………………..
…………………………………………………………………………………………………
…………………………………………………………………………………………………
- Objective 3: ……..…………………………………………………………………………..
…………………………………………………………………………………………………
…………………………………………………………………………………………………
2. Discuss and identify performance indicators to achieve the above objectives of MFIs.
- Performance indicators help to track objective achievement of MFIs. Performance
indicators can also be understood as "baby" objectives or detailed objectives of the "goal tree".
- Example of presentation of performance indicators:
Objective Performance Results Measuring way Timeline
indicators
Objective 1 Indicator 1
Indicator 2
Indicator 3
……..
Objective 2 ……..
……..
……..
41
“Business Planning” - Course

Identify detailed solutions/ plans in the business plan of MFIs.
1. Discuss and identify solutions to the organizational model of MFIs.

- Legal person/ legal form.
- Operating areas and main features of the proposed operating areas.
- Main contents of operation charter.
- Organizational model of MFIs and a brief function description of each component.
- Advantages and challenges of MFIs when applying the new organizational model.
2. Discuss and identify solutions for human resources of MFIs.
- Main job positions and job description of the positions.
- Plans for recruitment, training, employment and development of human resource.
- Human resources inside and outside MFIs.
- Advantages and challenges of MFIs in human development.
3. Discuss and identify solutions for marketing of MFIs.
- Groups of target customers (segment, characteristics).
- Strategic marketing for services (7P) in the field of microfinance:
+ Product
+ Price
+ Place
+ Promotion
+ People
+ Process
+ Physical Evidence
4. Discuss and identify solutions for information systems of MFIs.
- Solutions for software applications.
- Communication Solutions.
- Technology infrastructure: devices, databases, security...
5. Discuss and identify financial solutions for MFIs.
- Equity capital and resource formation of equity.
- Main financial indicators to be achieved.
- Orientation of loan portfolio and credit investment.
- Solutions to the equity capital.
6. Discuss and identify solutions for risk management of MFIs.
- Policy of general risk management.
- Main risks to be managed.
- System of internal control...
42

Financial plan for business plan.
1. Identify and evaluate results of raised interest rates, outcome interest rates, rate of minimum
safety and income of MFIs with the following information (unit: million):
Using the capital Value Interest Capital Value Rate
Cash on hand 50 0.00% No term cash deposits 520 6.00%
Deposits at state banks 30 7.00% Term deposits 300 8.00%
Deposits at commercial banks 50 9.00% Savings 1,250 11.00%
Loans secured by real estate 1,840 Loans from state banks 500 10.00%
Capital for entrusted
- Short-term loans 950 16.00% 550 9.00%
investment
- Medium-long term loans 890 18.00% Other equity 30 5.40%
Other guaranteed loans 1,260 Own capital 150 15.00%*
- Short-term loans 630 16.50% Total capital: 3,300
- Medium-long term 630 18.00%
Fixed assets 70
Total use of funds: 3,300
Income and other expenses of the Fund Value

Expenditure 250
Depreciation of assets 10
Cost of services purchased from outside 12
Cost of general provision 15
2. Constructing plans for the next year of MFIs with the following information:
- Use of funds: cash and deposits increase 20%, loans increase by 30%; assets 78 million VND.
- Capital: savings increase by 40%, additional entrusted funds 400 million VND; 94 million VND
of other capital.
- New collection from payment service is 35 million and expenditures for staff is 280 million.
- Assuming no change in other items.
3. Assessing raised interest rates, outcome interest rates, rate of minimum safety and income of
MFIs.
43

Develop roadmap for business plan.
Discuss and determine roadmap for implementation solutions of the business plan according to
the following table:
Solutions Year…. Year…. Year….
1. Solution to complete of organizational model for MFIs.
Main activity.
Responsibility
for implementation
Criteria for Evaluation
Measurement
Demonstration
product
Financial Resources
44

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Project Number: 42492-012

Viet Nam: Technical Training Manuals for

Advance Course in Business Planning: Planning for

Course ADVANCE BUSINESS PLANNING COURSE FOR MFIs – BUSINESS

Part I OPENING ACTIVITIES

PART I OPENING ACTIVITIES

Note: The Parking Lot is a place where the trainer

5. The lead trainer summarizes the participants’ outputs

PART I OPENING ACTIVITIES

Note: Having completed the introductions, the expectations

PART II BUSINESS PLANNING FOR TRANSFORMATION

PART II BUSINESS PLANNING FOR TRANSFORMATION

PART II BUSINESS PLANNING FOR TRANSFORMATION

PART II BUSINESS PLANNING FOR TRANSFORMATION

PART II BUSINESS PLANNING FOR TRANSFORMATION

PART II BUSINESS PLANNING FOR TRANSFORMING MFIs

PART II BUSINESS PLANNING FOR TRANSFORMING MFIs

PART II BUSINESS PLANNING FOR TRANSFORMING MFIs

PART II BUSINESS PLANNING FOR TRANSFORMING MFIs

PART II BUSINESS PLANNING FOR TRANSFORMING MFIs

PART III CLOSING ACTIVITIES

FORMALIZATION OF MICROFINANCE INSTITUTIONS IN VIETNAM

“Business Planning” Course

(2) Culture, Social

(3) Population structure

(4) Politics/ Laws

(5) Sector Environment

(9) Others (if any)

“Business Planning” Course

Circular 02/2008/TT-NHNN State Bank’s Proposal

a) Operational objectives of financial a) Operational objectives of MFIs;

“Business Planning” Course

1. Assume a name for the MFI of the group.

“Business Planning” Course

1. Identify at least three competitors in the local area.

3. Group Discussion on Opportunities and Challenges according to the suggestions in the

OPPORTUNITIES Main content

3. To be successful, which strengths should be developed and which weaknesses should be

“Business Planning” Course

1. Analyze five competitive forces of MFIs with the following suggestions:

First competitive force- providers

“Business Planning” Course

“Business Planning” - Course

1. Discuss and identify solutions to the organizational model of MFIs.

“Business Planning” Course

Income and other expenses of the Fund Value

“Business Planning” Course

Solutions Year…. Year…. Year….

1. Solution to complete of organizational model for MFIs.

Criteria for Evaluation

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