Chuyên đề thực tập recommendations and conclusion

ACKNOWLEDGEMENT

This study will not be completed if the author was not received great contribution

and support from serveral individuals and organizations. Then I want to send sincere

thanks to these individuals and organizations

I am greatly indebted to my advisor Assoc. Prof., PhD. Le Thanh Tam for her

unreserved help, advice, directing, insight guidance, critical review of my thesis

dissertation, invaluable support from the first days of the author's implementation of

this project.

I am also deeply grateful National Economic University for offering me a

chance to conduct this study to finished my course.

Finally, I would like to thank my family, friends and staffs of Agribank’s branch

located in Bo Ha town who have wholeheartedly supported to help me finish this

research.

Once again, I sincerely thank individuals and organizations and wish to dedicate

the success of this dissertation to these individuals and organizations

ABSTRACT

This study identifies factors that influence the decisions to participate credits

market from formal and informal sources in areas of the East of Yen The district – a

moutainous area of Bac Giang province. Employing information from Agribank Bo Ha

– Bac Giang II bank’s branch and collected data through question people live this area,

the econometric results reveal a set of factors that have a positive effect on the choices

of formal credit, but negative in the choice of informal sources. From regression result,

we find out that income, education level, marital status, gender, and take a positive

relationship in option from formal credit but nagetive within the choice of informal

source. Another factors that statistically explains only the choice of formal sources

and a variable that only influences the use of informal sources (location). The study

helps to improve our understanding of why participation in the formal sector in local

area remains low relative to its informal counterpart. From the results, some key

recommendations are proposed to improve quality of local institutional financial

market as well as ceiling unexpectation corollary of local shadow credit market.

LIST OF CONTENT

ACKNOWLEDGEMENT.............................................................................................1

ABSTRACT..................................................................................................................2

LIST OF CONTENT.....................................................................................................3

LIST OF TABLES.........................................................................................................4

LIST OF ABBREVIATION..........................................................................................5

CHAPTER 1: INTRODUCION.....................................................................................6

1.1. Rationale:........................................................................................................6

1.2. Research Objectives:......................................................................................9

1.3. Research Question:.........................................................................................9

1.4. Research Scope:..............................................................................................9

1.5. Structure:......................................................................................................11

CHAPTER 2: LITERATURE REVIEW..................................................................11

2.1. Theoritical Framework:...............................................................................11

2.1.1. Overview about credit:..........................................................................11

2.1.2. Overview about informal credit market :............................................17

2.1.3. Characteristics of the rural credit market in Vietnam:......................27

2.1.4. The households and individuals participate in the rural credit

market:.................................................................................................................29

2.2. Literature review:.........................................................................................31

2.2.1. A brief literature view about determinants effect on credit

accessibility:.........................................................................................................31

2.2.2. Summery literature review:..................................................................37

CHAPTER 3: DATA AND METHODOLOGY..........................................................40

3.1. Data:..................................................................................................................40

3.1.1. Methods of collecting data:......................................................................40

3.1.2. Method of depth – interview:...................................................................40

.3.1.3. Survey method through questionnaires:...................................................40

3.2. Methodology:....................................................................................................41

3.2.1. Model research:...........................................................................................41

3.2.2. Explanatory variables of the study..............................................................42

3.3. Hypotheses:.......................................................................................................45

CHAPTER 4 EMPIRICAL RESULTS AND DISCUSSION......................................48

4.1. Descriptive statistic result:.................................................................................48

4.2. Regression result:..............................................................................................54

4.3. Result discussion:..............................................................................................57

4.3.1. Age:.............................................................................................................57

4.3.2. Formal education level:...............................................................................58

4.3.3. Gender:......................................................................................................59

4.3.4. Marital status:............................................................................................59

4.3.5. Income:...................................................................................................60

4.3.6. Saving:......................................................................................................61

4.3.8. Occupation of respondent:.........................................................................62

CHAPTER 5. RECOMMENDATIONS AND CONCLUSION..................................64

5.1. Conclusion:........................................................................................................64

5.2. Recommendation:..............................................................................................64

5.2.1. Recommendation for Goverment and relevant deparments and agencies :..64

5.2.2. Recommendation for local authority:..........................................................66

5.2.3. From Vietnam Bank for Agriculture and Rural Development perspective:.67

LIST OF TABLES

Table 2.1. Summary literature reviews........................................................................38

Table 3.1. The results of data collection are based on online surveys and distribution of

offline interviews.........................................................................................................42

Table 3.2.The hypotheses of each independent variable to formal credit accessibility .

.....................................................................................................................................46

Table 3.3.The hypotheses of each independent variable to informal credit accessibility

.....................................................................................................................................47

Table 4.1. Statistical sample characteristics by factors................................................49

Table 4.2. Statistical sample characteristics by credit sources.....................................50

Table 4.3: Distribution of participation in credit markets............................................52

Table 4.4:Destination of personal loans and others financial services.........................52

Table 4.5:Reasons for stopping participation in the formal credit market....................52

Table 4.6: Reasons for not participating in the formal credit market...........................53

Table 4.7: Destination of informal credit.....................................................................54

Table 4.8: Summary of data and correlation coefficient between variables.................56

Table 4.8: Summary of data and correlation coefficient between variables.................57

Table 4.10: Binary Logistic regression results of factors affecting credit accessibility

of people in the East of Yen The district......................................................................58

LIST OF ABBREVIATION

Agribank Vietnam Bank for Agriculture and Rural Development

et al. et alii, 'and others'

VBSP Vietnam Bank for Social and Policy

SBV State Bank of Vietnam

VDB Vietnam for Development Bank

LUC Land Use Certificate

JLGs Joint liability groups

JBGs Joint borrowing groups

PCFs People’s Credit Funds

VDB Vietnam for Development Bank

VND Vietnamese Dong

ROSCAs Rotating Savings and Credits Associations

SBV The State Bank of Viet Nam

GOV Government of the Socialist Republic of Viet Nam

MOF Ministry of Finance