Factors Influencing Access to Formal Credit by Pottery Households: Case Study in Bat Trang Village, Hanoi, Vietnam

T.H.N. Nguyen, C.D. Dang, P.L. Nguyen and M.D. Nguyen

No 344449, ASEAN University for Sustainable Food System, Faculty of Economics, Kasetsart University, Bangkok, Thailand, April 18-19, 2024 from Association of Southeast Asian Nations (ASEAN)

Abstract: Diversification of rural livelihood through the development of non-farm activities is one of important policies for holistic rural development in Vietnam. However, non-farm households in general and pottery households in particular have faced with capital shortage in production process. One of reasons for their capital limitation is difficulties in formal credit access. This paper aimed to identify factors that influence pottery households’ access to formal credit in Bat Trang village, Hanoi city. By using Yamane’s formula, sample size of 167 households was determined. Descriptive statistics and Probit regression model were applied in quantitative data analysis. The results showed that households’ credit access was influenced by factors including age, educational level, collateral value asset, and return from ceramic production after tax. This study recommended that policy makers should implement a specific credit support for non-farm households in rural areas. In addition, commercial banks should loose credit requirements on collateral value assets in order to help rural non-farm households to access to formal credit, particularly banking loan.

Keywords: Agricultural Finance; Consumer/Household Economics (search for similar items in EconPapers)
Pages: 15
Date: 2024-04-28
New Economics Papers: this item is included in nep-cfn, nep-iue and nep-sea
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Persistent link: https://EconPapers.repec.org/RePEc:ags:asea24:344449

DOI: 10.22004/ag.econ.344449

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