ACCESS TO FORMAL CREDIT FOR THE POOR HOUSEHOLDS: EXPERIENCE FROM BANGLADESH AND PRACTICE IN VIETNAM

Abstract

Credit is one of the essential resources that help poor households transform their production methods towards hunger eradication and poverty alleviation. However, in the current context, many poor households still have difficulty in accessing formal credit sources, especially impoverished households in rural and mountainous areas. Therefore, the study used descriptive statistical methods to analyze the data collected from Grameen Bank - Bangladesh Annual Report, Vietnam Bank for Social Policies, People's Credit Fund, and Tinh Thuong One-member Limited Liability Microfinance Institution of Vietnam. This approach allows us to have a comprehensive and holistic view of credit access for poor households. On that basis, this article has drawn seven lessons learned to improve access to credit for poor households, creating a premise to increase income and contribute to the development of agricultural and rural economies toward industrialization and modernization.