Understanding financial inclusion in Vietnam

Abstract

The objective of this paper is to analyze the factors that affect the financial inclusion in Vietnam using the World Bank's Global Findex dataset. Analytical results show that income affects the use of official accounts and official savings. Education is positively correlated with official accounts and official savings, but is negatively correlated with the use of formal credit. Age influences official savings and the use of formal credit and this relationship is nonlinear. Sex does not impact the use of official and official savings accounts. However, being a woman tends to use formal financial channels more. The reason for not owning official accounts of individuals in Vietnam is mainly subjective (related to personal income). Being a woman and being older are less likely to use informal credit, while the lowest income-group people tend to use informal credit. From the results of this research, some policy implications are outlined to promote financial inclusion in Vietnam.