FACTORS AFFECTING THE ABILITY TO ACCESS OFFICIAL CREDIT OF FARMER HOUSEHOLDS IN THANH HOA PROVINCE

Abstract

Currently, the network of formal credit institutions operating in rural Vietnam is increasingly widespread, somewhat limiting the practice of usury. However, rural people still find it difficult to access formal credit, so they have to get loans from the informal sectors to meet their daily expenses as well as capital needs for production. This article uses the Binary logistic regression model to analyze the factors affecting the ability to access official credit of farmer households. The model is also employed as a basis to propose some solutions to improve the access to official credit of local households in Thanh Hoa province in particular and rural areas of Vietnam in general.