Few rural families able to access credit: report
Hanoi (VNS/VNA) - Although access to credit is seen as a key
factor in ending poverty, just 29 percent or so rural households have
received loans, a new report says.
Released on November 8, the report titled “Characteristics of the
Vietnamese rural economy: Evidence from a 2016 rural household survey in
12 provinces of Vietnam” was compiled by the Central Institute for
Economic Management (CIEM), World Institute for Development Research
under the United Nations University (UN-WIDER) and Institute of Labour
Science and Social Affairs (ILSSA).
The report says that a survey of 2,669 families found improvement in
rural households’ living conditions but a low percentage of access to
credit.
Finn Tarp, director of UNU-WIDER, said that the report showed an
increase in the poverty percentage under criteria developed by Ministry
of Labour, Invalid and Social Affairs (MoLISA) for monitoring short-term
poverty.
The report also found that gaps in education and healthcare among
surveyed localities have been widening with the northern mountainous
provinces of Lai Chau and Đien Bien still being left behind.
Poverty was significantly higher in areas populated by ethnic minority communities, it said.
The signs of improvement in living conditions seen in rural areas had
to with improvement in toilets, waste management and the use of gas
instead of firewood for cooking.
Tarp recommended Vietnamese policymakers concentrate on
narrowing existing gaps and addressing inequalities to make sure the
vulnerable in society have the support they need to better their lives.
On the other hand, Thomas Markussen of Copenhagen University,
representative of the land research group, appreciated Vietnam’s
efforts in improving the land tenure situation and accelerating
investments.
He emphasised the positive correlation between good land management and
investment choices, a decrease in the disadvantages women experience in
land ownership.
Nguyen Dinh Cung, head of CIEM, pointed to the significance of individual business households in attracting investment.
In comparison to the 2014 report, households with business licenses
increased by 29.5 percent while household production decreased by 56.2
percent.
More than 58 percent of land was used for rice plantation and
the surveyed families typically sold 30 percent of their rice yield,
the survey found.
Feasible plans
The poorest and most vulnerable groups still found it very difficult to
access credit, the report said, adding that there were noticeable
differences among localities in this regard.
Only 768 households of the 2,669 surveyed had obtained loans, a little
over 28 percent. It also found that credit access of ethnic minority
groups was increasing, while that of the second-tier wealthy group
(classified on the basis of criteria set by the Labour Ministry) was
decreasing.
Cung said that rural households had to take present feasible plans to access loans.
“Credit is not only an approach to eradicate poverty in the short term.
It is the momentum for better production and specialisation in
agriculture.
Therefore, social organisations like the Women’s Union or
Farmer's Union should carefully study rural households’ demands and
instruct them on efficient use of credit to end poverty and boost
prosperity.
These organisations should also be a bridge connecting farmers with investors for better access to credit,” Cung suggested.-VNA