Determinants of Access to Bank Credit for Agricultural Households in Vietnam

Abstract

This study examines the determinants of access to bank credit for agricultural households in Vietnam. Although there have been many positive developments, there is still a big gap in the economy when agricultural and rural areas are compared with urban areas; many agricultural households are still living in poverty. With the assumption that the improvement of access to capital will help people escape from poverty to become rich, this paper provides evidence of determinants of access to bank credit, as well as the granted amount of credit capital for agricultural households. The data is collected from a survey of 1560 agricultural households , conducted in August 2013. The results show that the level of education of the householder, value of collateral, household income, householder experience and credit history, can affect access to bank credit.