| Author | Truong Chi Hieu |
| Call Number | AIT Thesis no.RD-02-21 |
| Subject(s) | Credit Vietnam Quangtri
|
| Note | A thesis submitted in partial fulfillment of the requirements for the degree of Master
of Science |
| Publisher | Asian Institute of Technology |
| Abstract | Credit provision is a critical issue in rural development. In Vietnam, even though
there has been an impressive growth in consideration from the amount of the loan provided
by formal credit institutions, the shortage of the credit has been a major constraint to the
augmentation of economic development of the rural poor as well as improvement in their
living conditions in general. Credit institutions in this study covered only formal
institutions including the Provincial bank for Agricultural and Rural Development, the
Provincial bank for the Poor, and the credit scheme of the Provincial Women's Union.
The research deals with the promotion of formal credit provisions to rural people.
Main objectives of the research are to examine the extent of credit provisions by formal
credit institutions to rural people; to assess the accessibility of credit, credit's needs
between poor and non-poor households and identify the gap between the demand and the
supply of the credit; to identify factors affecting to the credit demand and repayment ability
of rural households and the key determinants; to examine people's perception, their level
of satisfaction and the benefits gained from the credit; and to suggest recommendations to
improve the delivery of the credit of financial institutions and provide implications for
future planning. The research focused on a comparative study between poor and non-poor
households.
The research was conducted in a commune in the Central of Vietnam using a
questionnaire fro a households survey as a prime method for data collection. The research
was focused on quantitative analysis but qualitative technique was also applied.
Based on the research findings, rural people had a high need of credit but their
accessibility to credit institutions was low. Non-poor households had more favorable
condition to access to those institutions. Main purpose of loan utilization was for
production purpose. For the poor group, the credit demand of them was determined by the
degree of feasibility of business plan rated by credit suppliers and number of training
courses attended. For the non-poor households, their credit demand was influenced by the
degree of feasibility of business plan rated by credit suppliers, the degree of familiarization
with banking staff, and the value of house. Despite of low accessibility of rural households
to the formal credit, both poor and non-poor households perceived several benefits gained
from the credit at a high level.
The research concluded that the limitation of capital was the most serious problem
of the credit institutions as envisaged from insufficiency of loan size and unavailability of
credit when clients were needed. Other problems were the complicated application
procedure especially among the poor households, difficulty in having a guarantee, limited
savings capacity, inadequacy of consumption loan provided and the limitation of banking
staff and their human resource development. For the clients, their problems were low
profitability of investment capital, inability to prepare business plan and lack of
information from credit institutions and low repayment ability.
Certain recommendations were given in this research to improve the performance
of credit institutions. These were focused on restructuring of credit institutions, operational
improvements and optimization of repayment ability of the clients. |
| Year | 2002 |
| Type | Thesis |
| School | School of Environment, Resources, and Development (SERD) |
| Department | Department of Development and Sustainability (DDS) |
| Academic Program/FoS | Rural Development, Gender and Resources (RD) |
| Chairperson(s) | Soparth Pongquan; |
| Examination Committee(s) | Routray, Jayant K.;Wickramanayake, B.W.E. ; |
| Scholarship Donor(s) | Norwegian Agency for Development Cooperation
(NORAD); |
| Degree | Thesis (M. Sc.) - Asian Institute of Technology, 2002 |