FACTORS DETERMINING THE ACCESSIBILITY TO BANK CREDIT FOR BUSINESSES IN VIETNAM

Business

This study examines the factors that determine the accessibility 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. In reality, many agricultural households are still living in poverty. With the assumption that the improvement of accessibility 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 was collected from a survey conducted in April 2021 including 1560 agricultural households. The results showed that the level of education of the householder, value of collateral, household income, householder experience and credit history can all attribute to the accessibility to bank credit.

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