Household’s Accessibility to Formal Credit in the Suburb of Hanoi: Case Study in Hoang Van Thu Commune, Chuong My District

Abstract

In recent years, Vietnamese government has promulgated a series of policies on rural credit. Since that time, the network of formal credit for rural and agriculture has been increasingly developed in terms of both the width and the depth. As a result, households’ financial capital has been significantly improved. However, a number of households still face with difficulties in access to formal credit, so they are depended on informal credit with high interest in rural areas. Based on the methods of economic statistics and PRA techniques, this article analyzed households’ formal credit accessibility in Hoang Van Thu commune, Chuong My district, Hanoi Suburb; analyzed influencial factors on households’ formal credit accessibility; and drew out recommendations in order to improve households’ accessibility to formal credit sources.