INSTITUTE OF SOCIAL STUDIES THE HAGUE THE NETHERLANDS UNIVERSITY OF ECONOMICS HO CHI MINH CITY VIETNAM VIETNAM- NETHERLANDS PROGRAMME FORMA IN DEVELOPMENT ECONOMICS Determinants of Homeownership in Vietnam A thesis submitted in partial fulfilment of the requirements for the degree of MASTER OF ARTS IN DEVELOPMENT ECONOMICS By NGUYEN NGOC TUAN BO GIAO DUC £lAO " TRUONG HQC KINH TE TP.HCM THUVItN 31'1 HO CHI MINH CITY, DECEMBER 2009 UNIVERSITY OF ECONOMICS HO CHI MINH CITY VIETNAM INSTITUTE OF SOCIAL STUDIES THE HAGUE THE NETHERLANDS VIETNAM - NETHERLANDS PROGRAMME FORMA IN DEVELOPMENT ECONOMICS Determinants of Homeownership in Vietnam A thesis submitted in partial fulfilment of the requirements for the degree of MASTER OF ARTS IN DEVELOPMENT ECONOMICS Academic Supervisor: DR HA THUC VIEN Student: NGUYEN NGOC TUAN HO CHI MINH CITY, DECEMBER 2009 ACKNOWLEDGEMENTS First of all, I would like to thank Dr Ha Thuc Vien, my supervisor, for his valuable comments and assistance Without his support and encouragement, my thesis would not be finished I also thank to my classmate Mr Nguyen Thanh Danh who advised me c:in data processing for the thesis I would like to special thank Assoc Prof Dr Nguyen Trong Hoai who has often urged and encouraged me to complete my thesis Supports from Vietnam-Netherlands Programme for MA m Development Economics' staff and classmates are fully acknowledged My heartfelt gratitude also goes to my family, particularly my wife and children who are my love and motivation during the studying time HCMC, Winter 2009 NGUYEN NGOC TUAN DECLARATION I declare that "Determinants of Homeownership in Vietnam" is my own work, that it has not been submitted to any degree or examination at any other universities, and that all the sources used or quoted are indicated and acknowledged by complete references HCMC, December 2009 NGUYEN NGOC TUAN II ABSTRACT Homeownership is considered as one of most essential needs for people living in the country It reflects the quality of life through the dwelling condition The percentage of households that own private houses is increasing year to year Furthennore, Vietnam is a developing country that is targeting to a market-oriented economy This has created many opportunities for improving its whole economy and society Consequently, the probability ofhomeownership is improved, as well However, the rate of poor households is still rather high in Vietnam This may leads to many difficulties in obtaining satisfaction from homeownership Therefore, this study is to examine determinants of homeownership of households in Vietnam on the basic of descriptive statistics and econometrics It is found that the household characteristics such as income, the number of members and assets of the household are statistically significant effect on the probability of homeownership Also, age and gender of the household heads are found to be significantly correlated its homeownership However, marital status and education attainment of the head are insignificant Other dete1minants are social-economic characteristics such as credit assistant program, immigration and employment The result is that, immigration and employment have significant effects on homeownership probability, excluding credit assistant programs Ill TABLE OF CONTENTS PAGE ACKNOWLEDGEMENT i DECLARATION ii ABSTRACT iii TABLE OF CONTENTS iv LIST F TABLES vi LIST OF FIGURES vi LIST OF BOXES • vi ABBREVIATIONS AND GLOSSARIES vii CHAPTER 1: INTRODUCTION 1.1 Problem statement 1.2 Objective of study 1.3 Research questions 1.4 Research methodology and scope of research 1.5 Structure ofthesis CHAPTER II: LITERATURE REVIEW 2.1 Theoretical literature 2.1.1 Basic terms and concepts 2.1.2 Assessment of economic theoretical approaches 2.2 Empirical studies 16 CHAPTER III: RESEARCH METHODOLOGY 21 3.1 Analytical framework 21 3.1.1 Qualitative choice models for durable goods 21 1.2 Methods of homeownership research 22 IV 3.1.3 Major determinants ofhomeownership 24 3.2 Research method 29 3.2.1 Justification of models 29 3.2.2 Econometric model specification 30 CHAPTER IV: AN OVERVIEW OF HOMEOWNERSHIP AND HOUSING SECTOR IN VIETNAM 35 4.1 An overview ofhomeownership in Vietnam 35 4.2 Changing in housing policies 39 4.3 Challenges ofhomeownership in the new economy .41 4.4 Housing demand in Vietnam: An example from Hanoi and Ho Chi Minh City 43 CHAPTER V: ECONOMETRIC ANALYSIS AND RESULTS 47 5.1 Data set 47 5.2 Logistic model ofhomeownership 49 5.3 Logistic regression results 50 5.4 Measurement of goodness-of-fit 52 5.5 Result interpretation 53 5.6 Summary 56 CHAPTER VI: CONCLUSIONS AND POLICY IMPLICATIONS S8 6.1 Conclusions 58 6.2 Policy implications , 59 REFERENCES 60 APPENDIX 65 v LIST OF TABLE Table 3.1: Variable descriptions 34 Table 4.1: Mean of determinants ofhomeownership 36 Table 4.2: Group of determinants by binary characteristics 38 LIST OF FIGURES Figure 2.1: Wage and price setting and the natural level of employment 14 LIST OF BOXES Box 4.1: Work starts on National Assembly House project .44 Box 4.2: Ho Chi Minh City (HCMC) to expand worker accommodations .46 Vl ABBREVIATIONS AND GLOSSARIES FMO :The entrepreneurial development bank of the Netherlands GEN :Gender HCMC : Ho Chi Minh City HHINC : Household income HHSIZE : Household size IMMI :Immigration LA : Lost Angeles Logit :Logistic NLSY :National Longitudinal Survey of Youth PS : Price setting PUMS : Public Use Micro-data Sample STATA : Statistics/Data Analysis U.S :United States UNDP : United Nations Development Program VHLSS : Vietnam Household Living Standard Survey ws : Wage setting WTO :World-Trade-Organization Vll CHAPTER I INTRODUCTION 1.1 Problem statement Vietnam is a transition economy that has changed from a centrally planned economy to a market economy Over last two decades, Vietnam has increasingly integrated into the larger world of economies Particularly, since joining the WTO in November 2006, Vietnam's economy has gradually tightened with the global economy strongly As a result, Vietnam's economy has grown more than 7% per year and income per capita has quickly increased from US$ 220 in 1994 to US$ 1,024 in 2008 (U.S Department of State 2009) Economic reform has also brought Vietnam into a new era of development, industrialization, modemization and urbanization Together with development process, economic growth and rapid population growth, there are appropriate 86 million people, of them 29.6% are living in cities This places a particularly important role on the development of housing sector and it has become urgently important at nowadays (Mizuno & Ishigami 1999) In 1991 Vietnamese people are allowed to have the right of owning a house by an ordinance on housing Therefore, homeownership is a wish of Vietnamese people (Geertman 2003) In according with economic growth, homeownership has become a proper demand in the life for a household because it is related to financial benefits (possible capital gains by selling a house later) and non-monetary benefits (physical health and development of children's cognitive capacities) in the future (Leppel 2007) In the perception of home owners, homeownership is embodied the personal success and happiness (Dietz & Haurin 2003) In addition, homeownership also increases local community stability and commitment in making a choice to live in where a household owns a house (Ratledge 1999) As a result, homeownership increases the demography stability in comparison with house renters that often change their accommodations (Dietz -Homeownership I Coef Std Err z P>lzl Marginal effect (e Bi) -lnHHINC 1754409 0718569 2.44 0.015 1.19 HHSIZE 1902853 0468842 4.06 0.000 1.21 ASSET 3.53e-06 1.62e-06 2.18 0.029 AGE 0297292 0040295 7.38 0.000 1.03 GEN 3028046 1177138 2.57 0.010 1.35 IMMI -1.598311 5983002 -2.67 0.008 0.2 EMPL 3162065 0442301 7.15 0.000 1.37 -1.765002 7288455 -2.42 0.015 0.17 cons From the regression result, most of the coefficients signs are consistent with the expected signs All of independent variables have positive effects on homeownership except immigration that has the negative influence Especially, the most statistically significant variables are household size, age of the household head and the number of people working in the household In the interpretation of regression result by marginal effect, one variable is explained by keeping others constant This applies for interpretation of all coefficients as the following The natural logarithm of total income of the household per year has effect on the favor of homeownership in which one percent increase in total income of the household per year leads to an increase in the odds of homeownership by 1.19 times It implies that the household is more likely to increase the favor of homeownership by 19 percent if their total income per year increases by percent Similarly, household size has also influence on the favor of homeownership By increasing by person, the odds of homeownership increases by 1.21 times That means 54 if the household has one more person, their favor of homeownership will increase 21 percent The total value of fixed assets of the household is less likely to affect on the favor of homeownership When fixed assets value increases by thousands Dong, the odds of homeownership not increase It implies that the favor of homeownership of the household is less likely to be effected by their assets Age of the household head has less effect on the favor ofhomeownership as well If age of the household head increases by year, the odds of homeownership increase by 1.03 times In other word, the favor of homeownership will increase percent when age of the household head increases by year The gender of the household head has more influence on the favor of homeownership Male household heads are more likely to be favor ofhomeownership by 1.35 times (or 35 percent) than female household heads Immigration has a negative effect on homeownership The household heads that are not registered as permanent residence are less likely to own a house by 80 percent than those who are permanent residence In other words, the favor of homeownership of immigrant households is less than that of local households by 80 percent The number of persons working in the household has strong effect on the favor of homeownership If the household increases person who is working for wage, salary and production/service in agriculture, forestry, aquaculture then the favor of homeownership will increases by 1.37 times or 37 percent Besides statistical significance of explained variables, there are three omitted variables (MARITAL, EDU and CRED) that are not statistical significance at 5% level in the unrestricted model that is explained as the follow For MARITAL variable, the possible reason is that in developing country like Vietnam, people often get marriage soon At that time, couples are still young that there is not sufficient financial resource for purchasing their own house Tn addition, as theory suggested, the youth is difficult to eam high income because of their experience 55 Consequently, young couples often live together with their parents or rent a house as a temporary solution for accommodation About education attainment of household head (EDU variable), it is not statistically significant at the level of 5% because VHLSS 2006 found that the rate of people who have no qualifications or never go to school of population is rather high In particularly, the poorest without any diploma was 38% while it was around 10.9% for the richest This implies that the well educated people in Vietnam are rather low In the regression running data set, there are only 4.53% of people who get college, university or doctor diploma In addition, there may be no guarantee for getting a good job with high salary for people who graduated This affects on high educated people's earnings which, in turn, limit the ability of buying a house The last statistically insignificant is CRED variable In 2006, 90% of poor households selected by localities benefited from the government project/policy programs In the period 2004-2006, nearly 40% households had loans or owed money in which there is 19% for improving houses and living conditions But the higher percentage of loans for house and living conditions improvement was seen in households with higher income (VHLSS 2006) That means the poor is rather difficult in reaching programs because of poor administration and corruption That leads to inefficiency of project/ policy programs As the result, poor households cannot improve their living conditions through homeownership 5.6 Summary The regression result indicates that all significant determinants of homeownership include household characteristics such as total income per year, the number of people and assets of the household All of them have positive effects on homeownership and consistent with the expected signs as proposed in Chapter III - Research methodology For characteristics of the household head, age and gender have positively significant effects on the probability of homeownership as theories and empirical found out, while the marital status and education attainment are not statistically significant at the level of percent Moreover, credit assistant program is insignificantly correlated with homeownership Marital status, education and credit are not consistent with theories and 56 empirical studies as stated in Chapter III The reasons are more likely to be a specific situation of Vietnam as the above explanation Furthermore, immigration and employment are found as strongly impacted factors on the favor of homeownership Immigration has a negative effect as expected and employment has the strongest influence on the favor of homeownership in term of marginal effect with the same sign as expectation 57 CHAPTER VI CONCLUSIONS AND POLICY IMPLICATIONS 6.1 Conclusions This study aimed at examining determinants of homeownership of households in Vietnam on the basic of VHLSS 2006 The estimation results are consistent with the findings of empirical studies and theory Specifically, all variables of household characteristics such as the total income per year of the households, household size and assets are significant and positive factors For household head's characteristics, age and gender of household heads are significantly and positively correlated with the homeownership while marital status and education attainment are insignificant The insignificance of marital status is recognized that buying a house is not a normal consumption; it does need the big financial resource This may create difficulties in homeownership for youth married couples because of their limitation in accumulated assets But they can live together with their parents or renting a house Even though they can own a house since their parent supports This is why marital status is not significant factor The study is also found that education is not a major detenninant of homeownership because of striking reasons First, Vietnam is used to be the poor country that has the low rate of high education This has led to low eamings Second, in the case of people who get high education, they not always have higher eamings because of unfair income distribution in society These reasons make educated people trouble in budget constraints for homeownership But they still maybe own a house because of other reasons such as heritage, support of the relatives and etc In term of social-economic characteristics, immigration and employment variables are significant and positive factors But credit assistant is insignificant because of poor administration and corruption in policy programs From the result of regression, it is recognized that employment has strong effect on homeownership This is the answer for the research question: Does the employment really affect on homeownership probability? The study is also found that there is a big gap between immigrants and local citizens in 58 the probability of homeownership in which the immigrant households meet with serious difficulties in ownership that the last research question deals with Limitation and further research However, the regression result of the study shows that the goodness of fit of the model is rather low Only percent of the total variance in homeownership probability is explained by all independent variables There are two main reasons that affect on the goodness of fit First, the bias of data set that is presented above in Section 5.1 Second is the lack of independent variables in the model This limitation may be a chance for further research For example, some independent variables may be added into the model such as location (urban or rural) because of big different in costs of houses For further research, by using the results of this study, a research about effects of determinants of homeownership on the housing market may be done 6.2 Policy implications Immigration and employment are found to be significant determinants of the homeownership probability that the study concerns Therefore, some policy implications are suggested as the followings - There is a wide gap in the homeownership probability between local residences and immigrant population The homeownership rate of immigrant population is 80% less than that of local citizens Thus, policies improving the access of immigrant population to homeownership should be adopted in order to reduce the homeownership gap - The most important dete1minant of homeownership is employment The study indicates that, keep other variables constant, if the household increases by person who is working for wage, salary and production/service in agriculture, forestry, aquaculture then the favor homeownership will increases by 1.37 times or 37 percent It is really a crucial factor on the probability of homeownership Therefore, job-creation policies have been effective in increasing the probability ofhomeownership 59 REFERENCES Abowd, J.M & Freeman, R.B., 1991 Immigration, Trade, and the Labor Market Chicago: The University of Chicago Press Arrondel, L & Lefebvre, B 2001 Consumption and Investment Motives in HousingWealth Accumulation: A French Study Journal o.f Urban Economics 50, p 112137 Becker, G S., 1993 Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education 3rd ed Chicago: University of Chicago Press Begg et al 2003 Economics The ;th edition The McGrawhill Companies, Inc Blanchard, 0., 2005 Macroeconomics International, Inc The 111 edition London: Prentice Hall Bookwalter, J T., Fuller, B S., Dalenberg, D R., 2006 Do household heads speak for the household? Social Indicators Research 79, p 405-419 Borjas, G J., 2002 Homeownership in the Immigrant Population Working Paper No 8945 NBER Bumas, L 2002 Intermediate Economics New York: M E Shape Cabre, A & M6denes, J A., 2004 Homeownership and social inequality in Spain Stanford: Stanford University Press Chern, W.S & Senauer, B., 1993 Pooled time -series and cross -section data from the consumer expenditure survey Available at: March 2009] http://ageconsearch.umn.edu/s216/93cher01.pdf [Accessed 27 Cisneros, H., 1995 Home Ownership Goals for the Year 2000 Stone Group, 13, p Coulson, N E., 1999 Why are Hispanic- and Asian-American Homeownership Rates so Low?: Immigration and Other Factors Journal of Urban Economics, 45, p 20927 Cramer, J.S., 1991 The Logit Model, London: Edward Arnold Deaton, A & Muellbauer, J 1980 Economics and Consumer Behavior The 151 edition United Kingdom: Cambridge University Press Dietz, R.D & Haurin, D.R., 2003 The Social and Private Micro-Level Consequences of Homeownership Journal of Urban Economics, 54, p 401-50 60 Easterlow, D., Smith, S J & Mallinson, S., 2000, Housing for health: the role of owner occupation Housing Studies 15, p 367 -386 Feijten, P., Mulder, C H & Baiza'n, P., 2003 Age Differentiation in the Effect of Household Situation on First-Time Homeownership Journal of Housing and the Built Environment 18, p.233-55 Fisher, L M & Jaffe, A J., 2003 Determinants oflnternational Home Ownership Rates Housing Finance International Available at: http ://www.housingfinance.org/pdfstorage/hfi/0309_ Det.pdf [Accessed 15 April2009] FMO, 2009 Low Income Housing Roundtable Hanoi, Vietnam Available at http://www.fmo.nl/FMO/documents/Housing/NewsletterHousing2.pdf [Accessed 21 March 2009] Gabriel, S & Painter, G., 2001 Different Paths To Homeownership: A Closer Look At Racial Disparities In Los Angeles Working paper No.l-3 RESEARCH INSTITUTE for HOUSING AMERICA Available at: 03 Different Paths Painter Gabriel.pdf [accessed 20 June 2008] Geertman, S., 2003 Who will build the Vietnamese City in the 21st Century? GLOBALISATION & TRADITION IN LAND AND HOUSING IN HANOI The Journal of Comparative Asian Development, (1), p 169-90 General Statistical Office, 2007 Result of the Vietnam Household Living Standards Survey 2006 Statistical Publishing House General Statistical Office, 2009 The 2009 Vietnam population and housing census: Implementation and preliminary result Available at http://www.gso.gov.vn/default_en.aspx?tabid=615&ItemiD=9268 [Accessed 10 September 2009] Glasner, D 1997 Business cycles and depressions: an encyclopedia United States of America: Library of Congress Cataloging-in-Publication Data Goodman, A C., 1999 An Econometric Model of Housing Price, Permanent Income, Tenure Choice, and Housing Demand Journal of Urban Economics, 23, p 32753 61 Gough, K., V & Tran, H A., 2009 Changing housing policy in Vietnam: Emerging inequalities in a residential area of Hanoi The International Journal of Urban Policy and Planning 26, p 175-86 Gujarati D N 2003 Basic Econometrics The 111 edition McGraw-Hill, Inc Gyourko, J & Linneman, P., 1996 Analysis of the Changing Influences on Traditional Households'Ownership Patterns Journal of Urban Economics 39, p 318-41 Gyourko, J & Linneman, P., 1997 The Changing Influences of Education, Income, Family Structure, and Race on Homeownership by Age Over time Journal of Housing Research, (1), p 1-25 Himmelweit, S et al., 1998 Understanding Economic Behavior: Households, Firms and Markets: Households Glasgow Bath Press Himmelweit, S., Simonetti R & Trigg, A., 2001 Microeconomics Neoclassical and Institutionalist Perspectives on Economic Behaviour Thomson Learning Ho Chi Minh City Real Estate Association, 2008 HCM City to upgrade, re-build corrupt apartments and build social houses Available at: http://www.horea.org.vn/muctinkhac ct.php?id=24209 [accessed 20 July 2008] Hood, J K., 1999 The Detem1inants ofHome Ownership: An Application ofthe Human Capital Investment Theory to the Home Ownership Decision The Park Place Economist VII Available at: http://www2.iwu.edu/economics/PPE07/jaclyn.pdf [Accessed June 2008] Hsia, R & Chau, L., 1978 Industrialization, employment, and income distribution Great Britain: Redwood Bum Limited Jahoda, M., 1981 Work, employment and unemployment: Values, theories, and approaches in social research American Psychologist, 36, p 184-91 Jansen, K., 1997 Economic reform and welfare in Vietnam Working paper Series No 260 Institute of Social Studies Ladd, H F., 1998 Evidence on Discrimination in Mortgage Lending The Journal of Economic Perspectives 12 (2), p 41-62 Leppel, K., 2007 Married and Unmarried, Opposite- and Same-Sex Couples: A Decomposition of Homeownership Differences JOURNAL OF HOUSING RESEARCH, 16 (1), p 61-80 62 Linneman, P & Watcher, S., 1989 The Impacts of Bonowing Constraints on Homeownership Journals of Real Estate Economics, 17 (4), p 389-402 111 McConnell, C R & Brue, S L., 1995 Contemporary Labor Economics The edition New Yorlc McGraw-Hill, Inc McEachern, W A., 2006 Microeconomics: A Contemporary Introduction Mason Thompson i 11 ed Ohio: Mizuno, K & Ishigami, K., 1999 Urban Development and Housing Sector in VietNam Research Paper No Research Institute for Development and Finance, Japan Bank for International Cooperation (JBIC) Available at: http://www.jbic.go.jp/english/research/repmi/paper/pdf/rp03 e.pdf [Accessed 10 June 2008] Oliver, M L & Shapiro,T M., 1995 Black Wealth, White Wealth: A New Perspective on Racial Inequality New York: Routledge Phuong, N.T., Tam, T N.T M., Nguyet, N T & Oostendorp, R., 2008 Determinants and Impacts of Migration in Vietnam Working Paper Series No 2008/01 DEPOCEN Quercia, R G & Watcher, S.M., 1996 Homeownership Counseling Performance: How Can It Be Measured? Housing Policy Debate, (1), p 175-200 Ratledge, E C., 1999 Home Ownership in Delaware: Patterns & Trends Available at :http://dspace.udel.edu:8080/dspace/bitstream/19716/234/1/dsha4co.pdf [Accessed June 2008] Rohe, W M & Stewart, L.S., 1996 Homeownership and Neighborhood Stability Housing Policy Debate, (1), p.37-81 Samuelson, P., 1956 Social Indifference Curves Quarterly Journal of Economics LXX (1 ) Schiffman, L., Bedhall, D & Cowley, E., 2001 Consumer Behavior Prentice Hall Sinning, M., 2006 Home-ownership and Economic Perfonnance of Immigrants 111 Germany Discussion Papers No.45 RWI ESSEN Available at: http:l/opus.zbw-kiel.de/volltexte/2007/5927/pdf/DP 06 045.pdf [Accessed 10 June 2008] 63 Smith, A., 1776 An Inquiry into the Nature and Causes of the Wealth of Nations Edwin Cannan, ed London: Methuen & Co., Ltd Smith, D & Dixon, C., 1997 Sustainable urbanization in Vietnam Geoforum 28(1 ), p 21-38 Smith, D W & Scarpaci, J L., 2000 Urbanization in transitional societies: an overview ofVietnam and Hanoi Urban Geography 21(8),p 745-57 Smith, S., 2003 Labour Economics, 2nd ed London and New York: Routledge Smith, S J., Easterlow, D & Munro M., 2004 Housing for health: does the market work? Environment and Planning A 2004 36, p 579 -600 The Saigon Times Daily, 2009 Dated July 8, 2009 Available at http://www.horea.org.vn!muctinkhac ct.php?id=26986 [Accessed 20 August 2009] The Saigon Times Daily, 2009 Migration should be included in development strategies Dated October 6, 2009 The Saigon Times Daily, 2009 Dated October 14, 2009 Available at http://www.horea.org.vnlmuctinkhac ct.php?id=27628 October 2009] [Accessed 20 Thomas,M., 2002 Out of control: emergent cultural landscapes and political change in urban Vietnam Urban Studies 39(9), p 1611-1624 Train, K E 1986 Qualitative Choice Analysis: Theory, Econometrics and an Application to Automobile Demand MIT Press Tran, H A & Dalholm, E., 2005 Favoured owners, neglected tenants: privatization of state owned housing in Hanoi Housing Studies 20(6), p 897-929 U.S Department Of State, 2009 BUREAU OF EAST ASIAN AND PACIFIC AFFAIRS Available at: http://www.state.gov/r/pa/ei/bgn/4130.htm [Accessed 20 April 2009] VHLSS, 2006 Vietnam Household Living Standard Survey General Statistical Office of Vietnam Available at: http://www.gso.gov.vn/default en.aspx?tabid=515&idmid=5&ItemiD=8183 [Accessed 20 October 2008] 64 APPENDIX logit Homeownership lnHHINC HHSIZE ASSET AGE MARITAL GEN EDU CRED IMMI EMPL Iteration 0: log likelihood= -1623.191 Iteration 1: log likelihood= -1546.802 Iteration 2: log likelihood= -1511.2709 Iteration 3: log likelihood= -1508.5037 Iteration 4: log likelihood= -1508.0715 Iteration 5: log likelihood=- 1508.0685 Iteration 6: log likelihood= -1508.0685 Number of obs = Logistic regression 9189 LR chi2(10) = 230.25 Prob > chi2 = 0.0000 Pseudo R2 Log likelihood = -1508.0685 I Homeownership Coef Std Err z 0.0709 P>lzl [95% Conf Interval] -lnHHINC 2095934 0758385 2.76 0.006 0609527 3582341 HHSIZE 1709471 0482207 3.55 0.000 0764363 2654579 ASSET 3.39e-06 1.60e-06 2.12 0.034 2.58e-07 6.52e-06 AGE 0292747 0041242 7.10 0.000 0211915 0373579 MARITAL 1648587 1884519 0.87 0.382 -.2045002 5342176 GEN 2814768 1213494 2.32 0.020 0436364 5193172 -1.37 0.171 -.7668298 1360471 0.67 0.501 -.3217267 6586421 EDU -.3153914 23033 CRED I 1684577 2500987 IMMI -1.606352 6005831 -2.67 0.007 -2.783473 -.4292307 EMPL I 3144994 0443521 7.09 0.000 2275709 -2.137097 7615975 -2.81 0.005 -3.629801 -.6443937 cons 4014279 *Note: failures and success completely determined 65 Dropping EDU variable logit Homeownership lnHHINC HHSIZE ASSET AGE MARITAL CRED IMMI EMPL GEN Iteration 0: log likelihood= -1623.191 Iteration 1: log likelihood= -1547.621 Iteration 2: log likelihood= -1512.1907 Iteration 3: log likelihood= -1509.3763 Iteration 4: log likelihood= -1508.9499 Iteration 5: log likelihood= -1508.947 Iteration 6: log likelihood= -1508.947 Number of obs Logistic regression 9189 228.49 LR chi2(9) Prob > chi2 Log likelihood= -1508.947 Homeownership I Coef Pseudo R2 Std Err z P>lzl = 0.0000 0.0704 [95% Conf Interval] lnHHINC 1823086 0734559 2.48 0.013 0383378 3262795 HHSIZE 1782762 0479696 3.72 0.000 0842576 2722948 ASSET 3.53e-06 1.62e-06 2.18 0.029 3.59e-07 6.70e-06 AGE 0292233 0041235 7.09 0.000 0211413 0373052 MARITAL 1679746 1885102 0.89 0.373 -.2014986 5374478 GEN 2801263 1213951 2.31 0.021 0421963 5180563 CRED 1667903 2501114 0.67 0.505 -.3234191 6569997 IMMI -1.57542 6004698 -2.62 0.009 -2.75232 -.3985212 EMPL 3137405 044225 7.09 0.000 2270611 40042 -2.56 0.010 -3.36992 -.446663 cons -1.908292 7457426 *Note: failures and success completely determined 66 Dropping CRED variable logit Homeownership lnHHINC HHSIZE ASSET AGE MARITAL GEN IMMI EMPL Iteration 0: log likelihood= -1623.191 Iteration 1: log likelihood= -1547.7189 Iteration 2: log likelihood= -1512.4073 Iteration 3: log likelihood= -1509.5996 Iteration 4: log likelihood= -1509.181 Iteration 5: log likelihood= -1509.1782 Iteration 6: log likelihood= -1509.1782 Logistic regression 9189 Number of obs = LR chi2(8) Prob > chi2 Pseudo R2 Log likelihood= -1509.1782 I Homeownership Coef Std En· z 0.0000 = P>lzl 228.03 0.0702 [95% Conf Interval] lnHHINC 1719381 0720449 2.39 0.017 0307327 3131435 HHSIZE 1809984 0478379 3.78 0.000 0872378 2747589 ASSET 3.51e-06 1.61e-06 2.18 0.029 3.51e-07 6.68e-06 AGE 0290185 0041123 7.06 0.000 0209585 0370786 MARITAL 167101 1885047 0.89 0.375 -.2023614 5365635 GEN 2780881 1213577 2.29 0.022 0402314 5159448 600712 -2.63 0.009 -2.757107 -.4023592 3151718 0442138 7.13 0.000 2285143 -1.796859 7292006 -2.46 0.014 -3.226066 -.3676517 IMMI EMPL I cons -1.579733 4018294 -*Note: failures and success completely determined 67 Dropping MARITAL logit Homeownership lnHHINC HHSIZE ASSET AGE GEN IMMI EMPL Iteration 0: log likelihood= -1623.191 Iteration 1: log likelihood= -1541.0462 Iteration 2: log likelihood= -1512.7322 Iteration 3: log likelihood= -1510.2637 Iteration 4: log likelihood= -1509.5683 Iteration 5: log likelihood= -1509.5625 Iteration 6: log likelihood= -1509.5625 Number of obs 9189 LR chi2(7) 227.26 Prob > chi2 0.0000 Pseudo R2 0.0700 Logistic regression Log likelihood= -1509.5625 Homeownership I Coef Std Err z P>lzl [95% Conf Interval] lnHHINC 1754409 0718569 2.44 0.015 0346039 3162779 HHSIZE 1902853 0468842 4.06 0.000 098394 2821766 ASSET 3.53e-06 1.62e-06 2.18 0.029 3.58e-07 6.70e-06 AGE 0297292 0040295 7.38 0.000 0218315 0376269 GEN 3028046 1177138 2.57 0.010 0720898 5335194 5983002 -2.67 0.008 -2.770958 -.4256639 0442301 7.15 0.000 -1.765002 7288455 -2.42 0.015 IMMI EMPL cons I -1.598311 I 3162065 229517 402896 -3.193513 -.3364914 *Note: failures and success completely determined 68 ... OVERVIEW OF HOMEOWNERSHIP AND HOUSING SECTOR IN VIETNAM 35 4.1 An overview ofhomeownership in Vietnam 35 4.2 Changing in housing policies 39 4.3 Challenges ofhomeownership in the... probability of homeownership The level of benefits of homeownership is increased in according with the more number of people in a household, especially the number of children An 24 increasing number of. .. this kind of investment is that expenditure (cost) on education or training is incurred at the beginning with the expectation for returns in the future Author shows that, in term of investment in