IDEAS home Printed from https://ideas.repec.org/p/ags/asea24/344449.html
   My bibliography  Save this paper

Factors Influencing Access to Formal Credit by Pottery Households: Case Study in Bat Trang Village, Hanoi, Vietnam

Author

Listed:
  • Nguyen, T.H.N.
  • Dang, C.D.
  • Nguyen, P.L.
  • Nguyen, M.D.

Abstract

Diversification of rural livelihood through the development of non-farm activities is one of important policies for holistic rural development in Vietnam. However, non-farm households in general and pottery households in particular have faced with capital shortage in production process. One of reasons for their capital limitation is difficulties in formal credit access. This paper aimed to identify factors that influence pottery households’ access to formal credit in Bat Trang village, Hanoi city. By using Yamane’s formula, sample size of 167 households was determined. Descriptive statistics and Probit regression model were applied in quantitative data analysis. The results showed that households’ credit access was influenced by factors including age, educational level, collateral value asset, and return from ceramic production after tax. This study recommended that policy makers should implement a specific credit support for non-farm households in rural areas. In addition, commercial banks should loose credit requirements on collateral value assets in order to help rural non-farm households to access to formal credit, particularly banking loan.

Suggested Citation

  • Nguyen, T.H.N. & Dang, C.D. & Nguyen, P.L. & Nguyen, M.D., 2024. "Factors Influencing Access to Formal Credit by Pottery Households: Case Study in Bat Trang Village, Hanoi, Vietnam," ASEAN University for Sustainable Food System, Faculty of Economics, Kasetsart University, Bangkok, Thailand, April 18-19, 2024 344449, Association of Southeast Asian Nations (ASEAN).
    • Handle: RePEc:ags:asea24:344449
    DOI: 10.22004/ag.econ.344449
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/344449/files/Nguyen%2C%20T.H.N.%2C%201Dang%2C%20C.D.%2C%201Nguyen%2C%20P.L.%2C%20and%201Nguyen%2C%20M.D..pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.344449?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Benedikter, Simon & Waibel, Gabi & Birtel, Serge & Bui, Cuong The & Tran, Be Thanh, 2013. "Local Entrepreneurship in Vietnam’s Rural Transformation. A Case Study from the Mekong Delta," MPRA Paper 49866, University Library of Munich, Germany.
    2. Hermann Waibel & Ulrike Grote & Shi Min & Trung Thanh Nguyen & Suwanna Praneetvatakul, 2020. "COVID-19 in the Greater Mekong Subregion: how resilient are rural households?," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(4), pages 779-782, August.
    3. Owusu, Victor & Abdulai, Awudu & Abdul-Rahman, Seini, 2011. "Non-farm work and food security among farm households in Northern Ghana," Food Policy, Elsevier, vol. 36(2), pages 108-118, April.
    4. Campero Alejandra & Kaiser Karen, 2013. "Access to Credit: Awareness and Use of Formal and Informal Credit Institutions," Working Papers 2013-07, Banco de México.
    5. Haggblade, Steven & Hazell, Peter & Reardon, Thomas, 2010. "The Rural Non-farm Economy: Prospects for Growth and Poverty Reduction," World Development, Elsevier, vol. 38(10), pages 1429-1441, October.
    6. Bruno Losch & Sandrine Fréguin-Gresh & Eric Thomas White, 2012. "Structural Transformation and Rural Change Revisited : Challenges for Late Developing Countries in a Globalizing World [Transformations rurales et développement : Les défis du changement structurel," World Bank Publications - Books, The World Bank Group, number 12481.
    7. Ashok K. Mishra & Aditya R. Khanal, 2017. "Assessing Food Security in Rural Bangladesh: The Role of a Nonfarm Economy," Frontiers of Economics and Globalization, in: World Agricultural Resources and Food Security, volume 17, pages 241-257, Emerald Group Publishing Limited.
    8. Bruno Losch & Sandrine Fréguin-Gresh & Eric Thomas White, 2012. "Structural Transformation and Rural Change Revisited : Challenges for Late Developing Countries in a Globalizing World [Transformations rurales et développement : Les défis du changement structurel," World Bank Publications - Books, The World Bank Group, number 12482.
    9. Thi Thu Tra Pham & Robert Lensink, 2007. "Lending policies of informal, formal and semiformal lenders: evidence from Vietnam," ULB Institutional Repository 2013/14285, ULB -- Universite Libre de Bruxelles.
    10. Thi Thu Tra Pham & Robert Lensink, 2007. "Lending policies of informal, formal and semiformal lenders," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 15(2), pages 181-209, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pace, Noemi & Sebastian, Ashwini & Daidone, Silvio & Dela O Campos, Ana Paula & Prifti, Ervin & Davis, Benjamin, 2022. "Cash transfers’ role in improving livelihood diversification strategies and well-being: short- and medium-term evidence from Zimbabwe," World Development, Elsevier, vol. 154(C).
    2. Rachmat Mulia & Elisabeth Simelton & Tan Quang Nguyen & Magnus Jirström, 2021. "Non-Farm Activities and Impacts beyond the Economy of Rural Households in Vietnam: A Review and Link to Policies," Sustainability, MDPI, vol. 13(18), pages 1-22, September.
    3. Van den Broeck, Goedele & Maertens, Miet, 2017. "Moving Up or Moving Out? Insights into Rural Development and Poverty Reduction in Senegal," World Development, Elsevier, vol. 99(C), pages 95-109.
    4. Liu, Jianzhi & Fang, Yangang & Wang, Ruru & Zou, Cunming, 2022. "Rural typology dynamics and drivers in peripheral areas: A case of Northeast China," Land Use Policy, Elsevier, vol. 120(C).
    5. Komikouma Apelike Wobuibe Neglo & Tnsue Gebrekidan & Kaiyu Lyu, 2021. "The Role of Agriculture and Non-Farm Economy in Addressing Food Insecurity in Ethiopia: A Review," Sustainability, MDPI, vol. 13(7), pages 1-22, April.
    6. Sinne Borby Ørtenblad & Torben Birch-Thomsen & Lukelo Roden Msese, 2019. "Rural Transformation and Changing Rural–Urban Connections in a Dynamic Region in Tanzania: Perspectives on Processes of Inclusive Development," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(1), pages 118-138, January.
    7. Kamaldeen Mohammed & Evans Batung & Moses Kansanga & Hanson Nyantakyi-Frimpong & Isaac Luginaah, 2021. "Livelihood diversification strategies and resilience to climate change in semi-arid northern Ghana," Climatic Change, Springer, vol. 164(3), pages 1-23, February.
    8. Zeeshan & Geetilaxmi Mohapatra & Arun Kumar Giri, 2022. "How Farm Household Spends Their Non-farm Incomes in Rural India? Evidence from Longitudinal Data," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(4), pages 1967-1996, August.
    9. Suttie, D. & Vargas-Lundius, R., 2016. "IFAD RESEARCH SERIES 2 - Migration and transformative pathways: a rural perspective," IFAD Research Series 280036, International Fund for Agricultural Development (IFAD).
    10. Diao, Xinshen & Magalhaes, Eduardo & Silver, Jed, 2019. "Cities and rural transformation: A spatial analysis of rural livelihoods in Ghana," World Development, Elsevier, vol. 121(C), pages 141-157.
    11. Ofori, Isaac K. & Gbolonyo, Emmanuel Y. & Dossou, Marcel A. T. & Nkrumah, Richard K. & Nkansah, Emmanuel, 2023. "Towards inclusive growth in Africa: Remittances, and financial development interactive effects and thresholds," MPRA Paper 116958, University Library of Munich, Germany.
    12. Diane Kapgen & Laurence Roudart, 2023. "A Multidisciplinary Approach to Assess Smallholder Farmers' Adoption of New Technologies in Development Interventions," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 35(4), pages 974-995, August.
    13. Moumita Poddar & Tanmoyee Banerjee (Chatterjee) & Ajitava Raychaudhuri, 2019. "An economic analysis of the determinants of pattern of institutional borrowing in India," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 21(1), pages 54-92, June.
    14. You, Liangzhi & Wood, Stanley & Wood-Sichra, Ulrike & Wu, Wenbin, 2014. "Generating global crop distribution maps: From census to grid," Agricultural Systems, Elsevier, vol. 127(C), pages 53-60.
    15. Sèna Kimm Gnangnon, 2020. "Comparative Advantage Following (CAF) development strategy, Aid for Trade flows and structural change in production," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-29, December.
    16. Chakraborty, Pallabi & Mahanta, Amarjyoti, 2024. "The role of financial and physical assets as substitute or complementary to land as collateral in credit market: Evidence from Indian households," Economic Systems, Elsevier, vol. 48(2).
    17. Kehinde, Ayodeji Damilola, 2021. "The Distributional Impact of Non-Farm Income on Output and Farm Income of Cassava Farmers in Southwestern Nigeria," 2021 Conference, August 17-31, 2021, Virtual 315857, International Association of Agricultural Economists.
    18. Van den Broeck, Goedele & Swinnen, Johan & Maertens, Miet, 2017. "Global value chains, large-scale farming, and poverty: Long-term effects in Senegal," Food Policy, Elsevier, vol. 66(C), pages 97-107.
    19. Jytte Agergaard & Cecilia Tacoli & Griet Steel & Sinne Borby Ørtenblad, 2019. "Revisiting Rural–Urban Transformations and Small Town Development in Sub-Saharan Africa," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(1), pages 2-11, January.
    20. Carol Newman & Christina Kinghan, 2015. "Economic transformation and the diversification of livelihoods in rural Vietnam," WIDER Working Paper Series 064, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    Agricultural Finance; Consumer/Household Economics;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:asea24:344449. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://asean.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.