Thesis Public Defense | VNP29 - Nguyễn Việt Ngân

Determinants of financial inclusion in Vietnam: a comprehensive analysis

Student: Nguyễn Việt Ngân, VNP-29

Supervisor: Dr. Hồ Hoàng Anh & Dr. Ellisaios Papyrakis

Abstract:

This study focuses on analyzing the determinants of financial inclusion in Vietnam, emphasizing how socio-economic factors such as gender, age, education, marital status, income and migration influence individuals’ access to and usage of formal financial services. Financial inclusion is crucial for sustainable development, as it allows broader participation in the economy, particularly for vulnerable groups. However, despite Vietnam’s economic progress, financial inclusion levels remain below global and regional averages. The study seeks to address the role of socio-economic elements in influencing financial inclusion. Using econometric methods OLS and GLM, the research analyzes data from both demand and supply sides to evaluate financial inclusion index in Vietnam. The findings emphasizes the magnitude of education and income as primary drivers of financial access, while other factors show limited or no impact. Higher-income individuals and married households are more likely to access financial services, while lower-income groups, especially in rural areas, face barriers despite
improvements in service availability. These results suggest that policy interventions are needed to address both supply-side challenges, like service availability, and demand-side constraints, such as socio-economic disparities, to improve financial inclusion. This comprehensive analysis provides valuable insights for policymakers aiming to reduce socio-economic inequalities and enhance access to financial services in Vietnam.

Keywords: Financial inclusion; socio-economic factors; behavioral economics; demand-supply side; regional disparities; Vietnam