The impact of Financial literacy on financial inclusionin Vietnam, 2021

THE STATE BANK OF VIET NAM MINISTRY OF EDUCATION AND

TRAINING

BANKING UNIVERSITY HO CHI MINH CITY

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GRADUATION THESIS

PHAN ANH KHOA

THE IMPACT OF FINANCIAL LITERACY ON FINANCIAL

INCLUSION IN VIET NAM

Supervisor: Assoc. Prof. PhD. HA THI THIEU DAO

Ho Chi Minh 2021

COMMITMENT`

This thesis is the author's study. The research results are honest in that there

is no previously published content or other content done by someone else except

fully cited citations in the thesis.

Ho Chi Minh City, 29/09/2021

Khoa

Phan Anh Khoa

ABSTRACT

This thesis explores the impact of financial literacy and financial technology

on financial inclusion in the university in Viet Nam. It employs a sample of 567

respondents sampled across the 3 regions of Viet Nam from June 2021 to August

2021. Logistic regression was used to analyse of impact of financial literacy on

financial inclusion. The following empirical findings emanate from this thesis:

financial literacy positively and significantly affect financial inclusion. The thesis

discovers that financial literacy has a significant impact on financial inclusion

through owning a bank account. Finally, it shows that financial literacy and

Fintech has a significant impact on financial inclusion. Overall, the findings of

the study provide policymakers in Vietnam with recommendations.

ACKNOWLEDGEMENT

I would like to thank my teacher Ha Thi Thieu Dao, Assoc. Prof, Ph.D., for

supporting me to complete the project successfully.

I would like to express my gratitude to all my friends who have supported me

to share my survey in student groups.

This research would not have been possible without their support.

ABSTRACT..............................................................................................................3

ACKNOWLEDGEMENT ...........................................................................................4

Chapter 1: INTRODUCTION ......................................................................................1

1.1. Problem Statement.....................................................................................1

1.2. Objectives.................................................................................................3

1.2.1. Overall objective.....................................................................................3

1.2.2. Specific objectives ...................................................................................3

1.3. Research questions.....................................................................................3

1.4. Objectives and scope...................................................................................3

1.5. Research methodology ................................................................................3

1.5.1. Data .....................................................................................................3

1.5.2. Regression method ..................................................................................4

Chapter 2: RESEARCH LITERATURE REVIEW ..........................................................6

2.1. Financial inclusion .....................................................................................6

2.1.1. Definition ..............................................................................................6

2.1.2. Financial inclusion measurement ...............................................................7

2.2. Financial literacy .......................................................................................8

2.2.1. Definition ..............................................................................................8

2.2.2. Financial literacy measurement ...............................................................10

2.3. Determinants of financial inclusion..............................................................11

2.3.1. Financial literacy and financial inclusion...................................................11

2.3.2. Control variables ..................................................................................12

2.4. Summary................................................................................................19

CHAPTER 3: RESEARCH METHODOLOGY.............................................................20

3.1. Research Data .........................................................................................20

3.2. Regression method ...................................................................................20

3.2.1. Binary logistic model .............................................................................20

3.2.2. Model specification................................................................................22

3.3. Testing ...................................................................................................25

3.3.1. Omnibus Tests......................................................................................25

3.3.2. Hosmer and Lemeshow Test ...................................................................26

3.4. Summary................................................................................................26

CHAPTER 4: RESULT OF STUDY AND DISCUSSIONS ..............................................27

4.1. Descriptive statistics .................................................................................27

4.1.1. Demographic statistics ...........................................................................27

4.1.2. Financial Inclusion Statistics...................................................................29

4.1.3. Financial literacy statistics......................................................................30

4.2. Regression results and discussions...............................................................31

4.3. Summary................................................................................................37

CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS........................................38

5.1. Conclusions.............................................................................................38

5.2. Recommendations....................................................................................38

5.3. Limitation and research future ...................................................................40

REFERENCE .........................................................................................................41

APPENDICES.........................................................................................................51