THAI NGUYEN UNIVERSITY UNIVERSITY OF ECONOMICS & BUSINESS ADMINISTRATION ………… NGUYEN HUU THU CREDIT DEVELOPMENT FOR POOR HOUSEHOLDS IN THAI NGUYEN PROVINCE Specialized: Economic management Code: 9.34.04.10 SUMMARY OF THE ECONOMICS DISSERTATION THAI NGUYEN, 2020 The dissertation was completed at UNIVERSITY OF ECONOMICS & BUSINESS ADMINISTRATION - THAI NGUYEN UNIVERSITY Scientific Supervisors: Assoc Prof Pham Bao Duong The peer review 1: The peer review 2: The dissertation was held in front of the committee of Thai Nguyen University: UNIVERSITY OF ECONOMICS & BUSINESS ADMINISTRATION Meeting at:………………………………… Date: ………… 2020 The dissertation can be found at: - Learning Resource Center - Thai Nguyen University - Library of Economics and Business Administration INTRODUCTION Research rationale Sustainable poverty reduction is the core objective of Vietnam's development strategy, while approach credit is seen as an important tool in strengthening financial support for the poor’s economic development However, recent studies indicated that the poorest and the most vulnerable households often have difficulty in accessing credit capital from the official region, only 28% of households have at least one loan, while the proportion of households having no loans, accounted for 70% The operation of the official credit network in Thai Nguyen Province which is engaged in providing credit for poor households in recent years has developed both in width and depth, nevertheless these networks has not yet met the poor households’s credit capital demand sufficiently and in time Many poor households still have experienced difficulties in approaching credit sources The research questions are: What is credit loan demand reality of poor families in Thai Nguyen? How is the status of credit development for poor households in the locality? Why is the rate of the poor households approached credit sources still low? What are the reasons? What are the potential solutions for credit development of poor households in province area? Therefore, the scientific research named “Credit development for the poor households in Thai Nguyen province", is most urgent It has meaning in both science and practically in the present circumstance Research objectives 2.1 General objective This research aims to assess the current status of poor households' credit situation in Thai Nguyen province; to provide the fundamental base in order to propose solutions for the poor families' credit development to contribute to success of Multidimensional Poverty Reduction, Sustainable Poverty Reduction in Thai Nguyen province in the next development phases 2.2 Specific objective - To systematize, to elucidate the basis theoretical and the reality of Credit Development for the poor households - Analyzing the actual status of credit development for poor households; Assessing the impact of the credit on the living level of the poor household; Analyzing factors that affect the development of credit for poor households in Thai Nguyen Province - Proposing solutions for credit development for the poor households in Thai Nguyen province in the coming period Subject of the research and study scale 3.1 Subject of the research The subject of thesis is the credit development of official Credit institution, taking part in providing credit for the poor households in Thai Nguyen Province 3.2 Study scale 3.2.1 Spatial scale Thesis is conducted in Thai Nguyen province 3.2.2 Temproral Scale - Secondary data was collected in term of 2017-2018 - Primary data was investigated in 2017 3.2.3 Content scale - The thesis focuses on analyzing the content of credit growth, credit quality, the type of credit, operational institutional credit, credit access of poor households in Thai Nguyen province - The thesis analyzes and evaluates the impact of credit on life of the poor household Analyzing factors affecting the credit development for poor households in Thai Nguyen province Research Contributions (1) The thesis completed a theoretical step and practical basis for Credit Development for poor households In particular, the thesis was given the concept of developing credit for poor households, discussing the Credit development for poor households, identifying assessment criteria and Influencing factors 2) The research had comprehensive analysis of the reality of poor households’ credit development in Thai Nguyen province in many aspects: Credit development, credit quality, credit type, credit organization, Credit accessibility, and credit operations Research analyzed factors affecting the credit development for the poor households 3) The thesis is the first study using Probit regression models to evaluate the credit access ability of the poor households, Tobit model used to evaluate credit level that the poor household can access Propensity Score Matching (PSM) used to assess the impact of the credit on the living standards of poor households in Thai Nguyen Province (4) The thesis proposed comprehensive solutions system on credit development for the poor households That contributes to the success for implementation of multi-dimensional poverty reduction goals and poverty reduction sustainable in Thai Nguyen province The structure of the thesis Besides the introduction, conclusion and recommendations, bibliography references and appendices, the thesis is organized into chapters: Chapter 1: Literature review Chapter 2: Rationale and practice of credit development for the poor households Chapter 3: Research Methodology Chapter 4: Current status of credit development for the poor household in Thai Nguyen province Chapter 5: Orientations and solutions for the poor household’s credit development in Thai Nguyen province Chapter LITERATURE REVIEW 1.1 International research literatures There have been quite a few researchS about the relationship between credit for farmer households in general and poor households in specific In Related to the research content of the thesis, there are some typical projects of: Aghion and Morduch (2005), Khandker (2005), Morris and Barnes (2005), Jainaba and Partner (2005), Yasmine (2008),Westover (2008), Takahashi and Partner (2010), Li and Partner (2011),Al-Mamun and Partner (2015), Ganle and Partner (2015), etc 1.2 National researches literatures Poverty reduction and the credit role for the poor households, which have been researched by lots of researchers Among published researches,those typical one relate to the research content of the thesis, named: Pham Bao Duong, Izumida (2002), Barslund, Tarp (2008), Nguyen Thi Quyen (2005), Phan Dinh Khoi et al (2013), Nguyen Vietnam Cuong, Marrit van den Berg (2014), Chen Thi Thanh Tu et al (2015), Pham Bao Duong, Pham Tien Thanh (2015), Chen Lan Phuong (2016), Ocean Decision Win (2016), Ngo Manh Main (2018), etc 1.3 General results assessment related to the thesis The abroad researches mainly using quantitative methods to analyze the factors affecting credit access ability of the farmers, and the poor households Moreover, a number of authors also studied the factors that affect the amount of capital that they can loan Besides, a number of studies have evaluated the impact of credit on their income and expenditure Researches in Vietnam, which is mentioned by authors, besides using descriptive statistic methods, comparisonS statistic to analyze and assess, the authors also used the linear regression model as Probit, Tobit, Heckman, Logic, DID, PSM to analyse the factors affecting credit access, analyze the factors that affect the amount of the loan and assess the impact of the credit on household living standards 1.4 The issues need to continue researching Through an overview research of works in Vietnam and abroad, as can see that the studies mentioned different aspects of credit, the farmers and the poor households However, the studies are still identifiable individuals There are no studies, studying the contents of the poor household's credit development Especially in Thai Nguyen province, There is no research using Probit linear regression model to analyze the credit accessibility of the poor household, Tobit model analyzing capital loans, and PSM model to assess the impact of the credit on the poor household's living standards This is the opportunity for the author to continue studying Chapter THEORETICAL AND PRACTICAL BASIS FOR THE DEVELOPMENT OFFOR POOR HOUSEHOLDS 2.1 Theoretical basis of credit development for the poor households 2.1.1 Some basic concepts 2.1.1.1 Concepts of poverty, poor households 2.1.1.2 Concepts of credit 2.1.1.3 Concept of credit for the poor households 2.1.1.4 Concepts of development 2.1.1.5 The concept of credit development for poor households The credit development for the poor households is an increase in scale of credit loans, with credit quality, increasingly better The types of credit increasingly diverse, institutional organizations operate Increasingly relevant and the poor households are easier in reaching credit capital sources 2.1.2 Characteristics of credit development for the poor households 2.1.3 The role of credit development for the poor households 2.1.4 Content of research on credit development for the poor households 2.1.4.1 Research on credit growth for the poor households Credit growth for the poor households are activities in increasing credit of the credit institution for the poor, in order to satisfy more the capital needed for their production purpose, business, job opportunities, solving partly necessities of housing, clean water, energy for lightning, and education 2.1.4.2 Research on credit quality for the poor household Credit quality for the poor household is a general economic targets, reflecting the results of credit activity of credit institutions and meet the needs of debtors in line with the socio-economic development of the country, while ensuring the existence and development of the CI 2.1.4.3 Research on the type of credit for the poor households The type of credit for the poor household must match the debtors ability That is possible to develop some type of credit for the poor households, based on the following criteria: in term of the time, in terms of purposes, in terms of Organizations 2.1.4.4 Research on the operation organisation of credit for the poor households Operations organization for the poor households is the most important factor in allocation and effective using Credit resources for the poor households With standards in the Proper credit operation, that will create a favorable environment for the Poor households, they are easier to access credit capital 2.1.4.5 Research on access to the poor households' credit Credit access is the meeting between a side having demand on using credit capital- the poor households, and the other side has ability in meeting the requirement– the Credit Institution 2.1.5 State management on the credit development for the poor households 2.1.6 Factors affecting the credit development for the poor households 2.2 Practical basis of credit development for the poor households 2.2.1 Experiences on credit development for the poor household in worldwide Thesis focuses on researching experience of some countries, are successful in credit development for the poor households, named: Bangladesh, Nepal, India, Indonesia 2.2.2 Experience on credit development for the poor households in Vietnam Thesis focuses on researching credit development experience for the poor households from VBSP, PCF, MFIs (TYM) 2.2.3 Lessons learned for Thai Nguyen province on the credit development for the poor households Chapter RESEARCH METHODS 3.1 Research questions - The situation of development of credit for the poors in Thai Nguyen province in past years? - The impact of credit on living standard of poor houshold in Thai Nguyen? - The factors that effect the development of credit for poor individuals in Thai Nguyen - The method that need to enhance the development of credit for poor household in Thai Nguyen? 3.2 Approach method and analytical framework 3.3 Selecting study area 11 4.4.3 Types of credit for poor household Credit organizations are applying mortgage credit for poor house hold through local social and political organizations for shortterm, mid-term and long-term loan concentrate on agriculture nonagriculture activities and other activities 4.4.4 Credit organizations and institutions for poor household credit Each credit organization has different regulation of interest rate, loan maturity, date, lending methods, repayment modes, debt repayment rescheduling and loan rescheduling depend on their characterstics * Capability to aproach credit of poor household In total 400 households have been inquired, 272 households have credit loans, 128 households not have credit loan (in years, 2015-2017) In which, Phu Luong district has highest portion with 90% and Phu Binh district has lowest portion with 57.14% (Table 4.4) Table 4.4: Capability to aproach credit loan of poor household Vo Nhai Districts Phu Luong Phu Binh Observations (%) Total number of surveyed households - Households borrow 154 120 126 400 100 92 108 72 272 68 - Households not borrow 62 12 54 128 32 Criteria Total Source: Compiled from survey data in 2017 * Capability to aproach credit of poor household In total 400 households investigated, 77 households have never had loan, 323 household have had loan, in which 229 households often have loan Rate of credit aproaching show the loans effectieness of these families (Table 4.9) 12 Table 4.9: Rate of credite aproaching of poor households Criteria Total number of surveyed households Households have never borrowed Vo Nhai Districts Phu Phu Luong Binh Total Observations (%) 154 120 126 400 100 45 11 21 77 19.25 Households have borrowed 109 109 105 323 80.75 - Households often borrow 75 83 71 229 57.25 Source: Compiled from survey data in 2017 * Rate of credit for poor household satisfied Average demand for loan from VBSP is 45.8 million VND, while amount of money lent is 37.5 million VND Average demand for loan from People Credit Fund is 32.5 million VND and amount of money lent is 23.9 million VND Average demand for loan from TYN is 20 million VND and amount of money lent is 15.5 million VND Such, the capability to satisfy the demand of loan for poor household is 77.47% and 22,53% is not satisfied * Method to aproach credit for poor household There are methods to aproach credit for poorhousehold direct aproaching and indirect aproaching First, poor families can aproach credit directly through credit organization and not need intermediate step, there are 34 per 304 loans Second, most of poor household aproach credit through local social and political organizations, acount for 89.14% of total loans (Table 4.11) 13 Table 4.11: Method to aproach credit of poor household Criteria Total amount of loan - Direct aproaching - Indirect aproaching No of Borrowings Vo Phu Phu Nhai Luong Binh 92 92 116 107 96 24 72 Total Observations 304 33 271 (%) 100 10.86 89.14 Source: Compiled from survey data in 2017 * Experimental analysis results Table 4.12: Estimated Results using Probit models Variables crd Gender Age Age Square Ethnicity Education Household Size Male Member Labor-force Ratio Main Job Social Capital Non-productive Asset Productive Asset Residential Land Agricultural Land Constant Percentage of Prediction orrectness Wald chi2(14) (Prob > chi2) Obs Gender Age Agesq Ethnic edu2 Hhsize Maleno Labor mainjob1 Socap asset1 asset2 Landha land234ha Cons Accessibility to Credit Coef t-stat Marginal Effect -0,069 -0,47 -0,024 0,153*** 2,71 0,053*** -0,002** -2,45 -0,001** 0,394** 2,35 0,136** 0,261* 1,66 0,090* -0,010 -0,10 -0,003 -0,130 -1,36 -0,045 1,638** 2,36 0,564** 0,535*** 2,75 0,184*** -0,189 -0,91 -0,065 0,018*** 5,29 0,006*** -0,012 -1,26 -0,004 -3,815** -2,03 -1,313** 0,087 0,30 0,030 -4,590*** -3,83 71,50% 59.79 (0.00)_ 400 Note: *, ** and ***: Significant at 10%, 5% and 1%, respectively Table 4.13: Estimated Results using Tobit models Variables Gender Age Age Square Ethnicity crd gender Age Agesq ethnic Coef -0,338 3,710*** -0,041*** 8,036** Amount Granted t-stat Marginal Effect -0,11 -0,265 2,91 2,906*** -2,67 -0,032*** 2,42 6,294** 14 Education Household Size Male Member Labor-force Ratio Main Job Social Capital Non-productive Asset Productive Asset Residential Land Agricultural Land Constant Sigma F( 14, 386) (Prob > F) Obs edu2 hhsize maleno Labor mainjob1 Socap asset1 asset2 landha land234ha Cons 3,248 3,273* -2,145 22,085 12,884*** -2,442 0,344*** -0,235 -111,460*** 6,479 -104,544*** 27,073*** 1,01 1,82 -1,12 1,56 2,80 -0,53 6,18 -1,20 -2,66 1,07 -3,94 22,56 5.85 (0.00) 400 2,544 2,563* -1,680 17,298 10,091*** -1,913 0,269*** -0,184 -87,298*** 5,075 Note: *, ** and ***: Significant at 10%, 5% and 1%, respectively Table 4.12 shows the estimated results from Probit and Tobit model Percentage of Correctness Prediction is 71.5 per cent, which means that the explanatory variables in Probit model explain the access to formal credit quite well Table 4.12,4.13 shows that such variables as age, education, Kinh ethnicity, labor-force ratio, main job, value of non-productive assets and area of residential land have statistically significant effect on households’ accessibility to formal credit and/or amount granted The remaining variables, including gender, household size, number of male and working-age members, social capital, value of productive assets, area of agricultural land have insignificant effect on households’ accessibility to formal credit and/or amount granted 4.5 Factors that impact development of poor households credit in Thai Nguyen province 4.5.1 Factors from poor households 4.5.2 Factors from credit organizations 4.5.3 Other factors 15 4.6 Impact of Formal Credit on Living Standard of Poor Households in Thai Nguyen Province Table 4.15 shows that formal credit has no significant impact on revenue from agricultural activities (cultivation and livestock-rearing) The results are consistent among matching techniques (Nearest- Neighbor, Kernel and Radius) As for self-employment, Table reveals that formal credit borrowers have significantly higher revenue than their non-borrowing counterparts by 1.642 and 1.576 million VND using Radius with caliper = 0.05 and Kernel matching, respectively Table 4.15: Impact Evaluation of Formal Credit on Revenue Outcome NNM (n=1) Radius (Cal=0.01) Radius (Cal=0.05) Kernel Cultivation ATT t-stat 3,381 1,52 2,557 1,44 2,047 1,21 2,095 1,39 Livestock ATT t-stat 0,720 0,32 0,378 0,17 0,573 0,42 0,462 0,29 Self-employment ATT t-stat 0,311 0,22 1,083 0,89 1,642* 1,90 1,576* 1,77 Note: *, ** and ***: Significant at 10% and 5%, respectively Nearest-Neighbor (NN) matching with n = As for the impact of formal credit on expenditures, Table 4.16 indicates that formal credit has no significant impact on the poor households’ expenditure for food consumption The reason is that most of the poor locate in the rural area, where food can be selfsufficient, hence they may not use credit for food consumption The results find that formal credit borrowers have higher expenditure for necessarynon-food items than the non-borrowers, which indicate that borrowers spend more on the items that they cannot produce by themselves, such as soap, detergent, etc 16 Table 4.16: Impact Evaluation of Formal Credit on Expenditure Food Outcome ATT 0,170 0,086 0,035 0,033 NNM (n=1) Radius (Cal=0.01) Radius (Cal=0.05) Kernel Necessities ATT 0,100** 0,090** 0,065* 0,067* t-stat 0,85 0,61 0,28 0,26 t-stat 2,07 2,07 1,79 1,72 Note: *, ** and ***: Significant at 10% and 5%, respectively Nearest-Neighbor (NN) matching with n = Table 4.17 shows no impact of formal credit on the expenditure for non-productive assets but positive impact on productive assets It implies the poor truly use their credit for investment purpose, which may benefit them in a longer term and sustainably rather than for purchasing assets which only serve short-term welfare Table 4.17: Impact Evaluation of Formal Credit on Durable Assets Durable Assets Outcome Non-productive Productive ATT t-stat ATT t-stat ATT t-stat NNM (n=1) 0,578 1,21 -0,024 -0,15 0,602* 1,83 Radius (Cal=0.01) 0,548 1,07 -0,035 -0,24 0,583* 1,80 Radius (Cal=0.05) 0,39 1,05 -0,052 -0,43 0,441* 1,82 Kernel 0,412 1,31 -0,051 -0,46 0,462* 1,68 Note: *, ** and ***: Significant at 10% and 5%, respectively Nearest-Neighbor (NN) matching with n = 4.7 General assessment of credit development for poor households in Thai Nguyen province 4.7.1 Achievements in credit development for poor households First, credit deelopmet for poor household: credit organizations had outstanding deelopment through expanding amount of credit for poor household, and number of poor families aproached to credit 17 Second, quality of poor household credit: portion of overdue debt, off-charged debt in total debt in resent years are always under 1%, which showed the high security of poor household credit Aproaching to credit give poor families more chance to have in place jobs and change the awareness of poor household Third, types of poor household credit: credit organizations have sucessfully applied traditional credit types are short-term, midterm anf long-term In which, credit organization not only concentrate on loans for agrculture activities Forth, institutions and organizing credit for poor household: policies for poor household credit have been comprehensive, consistent and synchronized deploied These policies give chance for poor household to aproach to credit Fifth, credit aproaching for poor household: there are 272/400 families aproached to credit with 304 loans from official credit organizations Credit organization has adjust to increase the amount of loan to facilitate poor household to expand their production or change production models, raise livestock or expand other activities 4.7.2 Restrictions on credit development for poor households Firstly, credit growth for poor households: rate of credit growth and number of credit growth of poor households of credit institutions are low and unstable The number of credit institutions involved in lending to poor households is still small The operational network of a number of formal credit institutions is still limited and unevenly distributed 18 Secondly, in terms of credit quality for poor households: Overdue and frozen debts of some credit institutions have decreased over the years but still exist Some households use the loan for the wrong purpose Thirdly, on the types of credit for poor households: The variety of credit types for poor households of credit institutions in Thai Nguyen province is still very limited to term loans and little use of other forms of credit has partly limited the credit activity diversity of credit institutions Fourthly, on the institution and organizing of credit operations for poor households: The mechanism for managing interest rates is still rigid, the mode of lending, the level of loans, and the term of loans are not really flexible Fifthly, access to credit of poor households: Access to credit information, market information of poor households in many regions still faces many difficulties As a result, a large proportion of poor households have demand for loans but lack of information has not been able to access credit capital 4.7.3 The cause of the limitations in developing credit for poor households The amount of gorvernment capital investment in credit programs for poor households has not met actual needs Capital sources of credit institutions are limited, capital mobilization from organizations and individuals still faces many difficulties Credit officers of credit institutions are still thin 19 The operational quality of the savings and loan groups, the loan group has not really met the requirements set out Banking technology as well as telecommunication network in remote areas has not developed The professional level and awareness of the poor is limited so the use of capital is not effective The coordination between credit institutions and social and political organizations and programs in poverty reduction is still very limited Infrastructure does not meet the needs of both credit institutions and poor households Poor households not have production and business experience Chapter ORIENTATIONS AND SOLUTIONS FOR CREDIT DEVELOPMENT FOR POOR HOUSEHOLDS IN THAI NGUYEN PROVINCE 5.1 Domestic and local context for credit development for poor households in Thai Nguyen province 5.2 Sustainable poverty reduction orientation in Thai Nguyen province 5.3 Viewpoints on credit development orientation for poor households in Thai Nguyen province 5.4 Credit development solution for poor households in Thai Nguyen province 5.4.1 Credit growth solution group for poor households - Diversify sources of capital, strengthen capital mobilization methods - Continue to reform administrative procedures 20 - Expanding the network, strengthening transaction offices and transaction points - Increase medium and long-term loans 5.4.2 Group of credit quality solutions for poor households - Enhancing training and improving the quality of the team - Consolidating and improving the operational quality of the Savings and Credit Groups, loan groups - Strengthen the inspection and control of the use of loan capital - Strengthen debt management, limit overdue debts 5.4.3 Group of solutions to diversify types of credit for poor households - Flexibility according to household economic status and suitable for the poor - Enhancing lending through groups - Providing credit according to the production chain - Providing credit to investment project owners and owners of production and business establishments that employ laborers and consume products made by the poor 5.4.4 Group of institutional solutions to operate credit activities for poor households - Lending interest rate and form of guarantee when borrowing capital - Loan term and loan amount - Lending method 5.4.5 Group of solutions to improve access to credit of poor households 21 - Improve the capacity and organization of production and business households - Poor households should actively learn about lending and lending activities of credit institutions - Households need to diversify jobs through non-agricultural activities - Strengthening the role and performance of local governments and social organizations 5.4.6 Group of integrated solutions, other support - Coordinate and integrate the poverty reduction objectives and tools of credit policy with the poverty reduction policy - Enhancing the coordination between State management agencies, social-organizations and credit institutions - Investment in building essential infrastructures for poor communes - Implement policies to support production land for poor households CONCLUSIONS AND RECOMMENDATIONS CONCLUSIONS Firstly, the thesis systematized Demystifying theoretical basis and practical on credit development for the poor household According to researchers about Status of credit development for the poor households in some countries in the world and in Vietnam, the thesis drew lessons learned for Thai Nguyen province on the poor household's credit development Secondly, the thesis analyzed the poor household's credit development status on many aspects: credit growth, credit quality, 22 the type of credit, institutional operation of credit, and credit access of the poor households Analytical results from Probit and Tobit model showed influencing factors, having statistical significance to credit access ability of the poor households as: age, ethnicity, education, labor rate, major industrial sectors, financial products and non-productive land Affect factors had statistical significance to the amount of loans capital, including: age, ethnicity, household members and main occupation, non-production assets and land use Results of assessing impact of credit on household living standards by PSM methods, showing credit's debtors officially revenue from higher nonfarm business production is higher than non loans group and have accounts spending on non-essential good food, spending on asset serving for production which is higher than non-loans group Thirdly, the thesis proposed solutions system in order to develop credit for the poor households in Thai Nguyen province in upcoming stage: Group of solutions on credit development, solution for credit quality group, solutions for credit types group, group of solutions for institutional credit operation, group of solution on credit access for the poor household and some other integration solutions RECOMMENDATIONS For the Government - Planning on credit development network of credit institutions in the agricultural are of province, especially in mountainous area, and remote area - To allocate sufficient funds to implement programs and approved policy 23 - Creating opportunity for credit institutions to access capital from outside - There are incentives on capital for businesses, where the cooperative to attract jobs site and product consumption for poor households produce For local governments in Thai Nguyen - Strengthening the leadership and guidance of the Party Committee, the rights to operate the credit for the poor - Directing all levels and branches needing to regularly reviewed, verified and recognized the right poor household - To interest in supporting and creating favorable conditions for the credit operation - Coordinating with credit organizations in order to regularly monitor and supervise the process of poor household using loans For the State Bank in Thai Nguyen - Implementing State management competence for the operation of credit institutions lending to the poor in the locality - Strengthening the monitoring credit activities of credit institutions, provide support for credit institutions operating in the agricultural and rural sector - Strengthening measures credit management policies, improve the efficiency of inspection and management of the agricultural bank - Directing credit institutions in reforming administrative procedures in the simple loan work, convenient and fit with the poor 24 LIST OF PUBLICATIONS RELATED TO THE THESIS Nguyen Huu Thu, Le Thi Phuong (2017), Result of polisy application on poverty reduction in Thai Nguyen: Experience and Solutions, Journal of Science and Technology magazine - TNU, pp113 - 118, No 163(03/2), code 1859-2171 Nguyen Huu Thu, Pham Bao Duong (2017), Some theoretical and practical issues on credit development for poor households, Economic Studies, pp57-66, No (468), code 0866-7489 Nguyen Huu Thu, Le Thi Phuong (2017), The status of poverty level of rural households in Thai Nguyen province: A multidimensional approach, Journal of Economics and Business Administration, pp29-34, No (9/2017), code 2525-2569 Nguyen Huu Thu, Le Thi Phuong (2018), Credit growth for poor households in Thai Nguyen province: Situation and problems raised, Asia - Pacific Economic Review, pp81-83, No 515 (4/2017), code 0868-3808 Nguyen Huu Thu, Pham Bao Duong (2018), Impact of formal credit on living standard of poor households in mountainous northern Vietnam, Enterprise Development and Microfinance, ISSN 1755-1978, Vol 29, Issue 3-4, pp244-261 https://dx.doi.org/10.3362/1755-1986.00017 https://en.kyoto.cseas.kyoto-u.ac.jp/2019/01/20190125/ Nguyen Huu Thu, Le Thi Phuong (2019), Improving the credit quality of loans for poor households at Thai Nguyen credit institutions, Review of Finance, pp59-61, Issue 2-May,2019(705), code 2615-8973 25 Nguyen Huu Thu, Tran Đinh Tuan (2019), Situation of access to formal credit of poor households in Thai Nguyen province, Economy Forecast Review, pp112-115, No 15 (5/2019), code 0866-7120 ... Marrit van den Berg (2014), Chen Thi Thanh Tu et al (2015), Pham Bao Duong, Pham Tien Thanh (2015), Chen Lan Phuong (2016), Ocean Decision Win (2016), Ngo Manh Main (2018), etc 1.3 General results... (Cal=0.05) Kernel Cultivation ATT t-stat 3,381 1,52 2,557 1,44 2,047 1,21 2,095 1,39 Livestock ATT t-stat 0,720 0,32 0,378 0,17 0,573 0,42 0,462 0,29 Self-employment ATT t-stat 0,311 0,22 1,083 0,89... of Formal Credit on Durable Assets Durable Assets Outcome Non-productive Productive ATT t-stat ATT t-stat ATT t-stat NNM (n=1) 0,578 1,21 -0,024 -0,15 0,602* 1,83 Radius (Cal=0.01) 0,548 1,07