Impact of microcredit on women’s income in Thoi Lai, Can Tho

Abstract

This paper uses the PSM propensity score comparison method and Stata apppliaction to the impact of loans from the fund to support women in economic development in Thoi Lai district, Can Tho city. The impact assessment results show that the factors of assets, loan purpose, and loan amount have an influence on the income of women and the income of women participating in the program is higher than that of non-participating women from 11,702,000 VND to 12,944,000 VND/year, this result is based on a comparison between 113 women participating and 47 women not participating in the program in 2019 in Thoi Lai district. The results imply that participating in microcredit will contribute to improving women’s income. To enhance the impact of microcredit on women’s income when participating in the program, women need to participate in many local meetings, and local government organizations strengthen coordination with unions to support women in accessing information, training, counseling and career guidance. The State should have tax and financial incentives in accordance with the law for enterprises that employ a lot of female workers.