TABLE OF CONTENT TABLE OF CONTENT i LIST OF TABLE v DECLARATION 1 Acknowledgment 2 Chapter 0 Introduction 1 0 1 Problems statement 1 0 2 Overview of related studies (research situation) 1 0 3 Research[.]
TABLE OF CONTENT TABLE OF CONTENT .i LIST OF TABLE v DECLARATION Acknowledgment Chapter 0: Introduction 0.1 Problems statement 0.2 Overview of related studies (research situation) 0.3 Research objectives 0.4 Thesis question 0.5 Research scope: 0.6 Methodology .4 0.7 New contributions of the research 0.8 Thesis structure Chapter BASIC ISSUES ON THE RELATIONSHIP BETWEEN THE ACCESSIBILITY TO FINANCIAL INCLUSION AND THE BUSINESS RESULTS OF MICRO BUSINESSES .6 1.1 Overview of financial inclusion .6 1.1.1 Definition and history of financial inclusion development .6 1.1.1.1 Definition .6 1.1.1.2 History of financial inclusion development .10 1.1.2 Principles of financial inclusion 13 1.1.3 Measuring financial inclusion 14 1.1.3.1 Supply-Side Research 16 1.1.3.2 Demand-Side Research .18 1.1.3.3 Financial Landscape Studies .20 1.2 Financial inclusion for micro-sized enterprise .21 1.2.1 Definition and features of micro-sized enterprise 21 1.2.2 Financial inclusion providers for micro sized enterprise 25 1.2.3 Financial inclusion services for micro sized enterprise 27 i 1.3 The relationship between accessibility to financial inclusion and business performance of micro sized enterprise 28 1.3.1 Overview of accessibility to financial inclusion .28 1.3.1.1 Definition 28 1.3.1.2 Criteria .29 1.3.2 Financial performance of MSEs 29 1.3.2.1 Definition 29 1.3.2.2 Criteria .29 1.3.3 Relationship between financial inclusion accessibility and financial performance of MSEs: .33 1.4 International experience and lesson for Vietnam in promoting accessibility of financial inclusion for MSEs (done) 35 1.4.1 Financial inclusion for MSEs in the world 35 1.4.1.1 Global .35 1.4.1.2 USA 36 1.4.1.3 Asia countries 38 1.4.2 Models promote accessibility of financial inclusion to MSEs 41 1.4.2.1 Individual agencies – experienced from landbank 41 1.4.2.2 Retail selling base on people (Grameen Bank in Bangladesh; ASKI, CARD in Philippines; The Bank Rakyat Indonesia (BRI) in Indonesia, ACLEDA in Cambodia) .41 1.4.2.3 Retail selling based on technology model (BanKO) 44 1.4.2.4 Developing financial inclusion services for MSEs through post office 44 1.4.3 Lesson for Vietnam 46 Chapter 2: THE SITUATION OF ACCESSIBILITY TO FINANCIAL INCLUSION OF MICRO SIZED ENTERPRISE IN VIETNAM 48 2.1 Overview of financial inclusion services for micro sized enterprise in Vietnam 48 2.1.1 Financial inclusion market for micro-sized enterprise in Vietnam 48 ii 2.1.1.1 Financial inclusion services for micro-sized enterprise in Vietnam 48 2.1.1.2 Financial inclusion providers for micro sized enterprise in Vietnam 49 2.1.2 Legal framework for financial inclusion 52 2.2 Đánh giá thực trạng mức độ tiếp cận tài tồn diện hộ kinh doanh siêu nhỏ Việt Nam 55 2.2.1 Achievements 55 2.2.2 Limitations .56 2.2.3 Causes 58 CHƯƠNG 3: MODEL AND THE RESEARCH RESULTS OF THE RELATIONSHIP BETWEEN FINANCIAL INCLUSION ACCESSIBILITY AND FINANCIAL PERFORMANCE OF THE MICRO BUSINESS IN HANOI 59 3.1 Research model and hypothesis 59 3.1.1 Research model .59 3.2 Research design 60 3.2.1 Research objectives: 60 3.2.2 Research approaching method: 61 3.2.3 Research process .62 3.4 Design research sample and research subjects .63 3.4.1 Research samples .63 3.4.2 Choosing sample size method 64 3.4.3 Collecting data method 64 3.5 Research result 65 3.5.1 Analysis of descriptive statistics .65 3.5.2 Reliability measure for Business performance of micro business households 65 3.5.3 Exploratory Factor Analysis 67 3.5.4 Correlation Analysis with Independent Variable 70 iii 3.5.5 Regression analysis 71 CHAP 4: DISCUSSIONS AND RECOMMENDATIONS ABOUT ACCESSIBILITY TO FINANCIAL INCLUSION 74 4.1 Discussing results of the survey .74 4.1.1 The overall financial performance of households using financial inclusion services: .74 4.1.2 Accessibility to financial inclusion of micro business households: .76 4.1.2.1 Crediting behaviors: 76 4.1.2.2 Internet transaction behaviors: 77 4.1.2.3 Saving behaviors: .78 4.1.3 Affect of financial inclusion factors on business performance: 79 4.2 Findings about the accessibility toward financial inclusion of micro business: 80 4.3: Recommendations about improving accessibility to financial inclusion services 82 4.3.1 Recommendation for financial inclusion provider (P1, P2, P3,…) 82 iv LIST OF TABLE Table: Financial inclusion providers for micro sized enterprise in Vietnam 49 Formal financial accounts: 56 Figure 3.1: Research Model 59 Hình 3.2: Research process .62 Table 3.1: Sample size based on Factor Loading 63 Table 3.2: Descriptive statistic 65 Bảng 3.3: Độ tin cậy nhân tố “Business performance of micro business households 66 Table 3.4: Results of EFA 68 Table 3.5: Correlation analysis between the independent and dependent variables .70 Table 3.6: Recurrence analysis result 72 Bảng 3.7: ANOVA analysis result 73 Table 3.8: Mức độ phù hợp mô hình 73 Figure 1: Comparison of Business's Growth distribution of Micro businesses with financial inclusion and without financial inclusion 74 Table 1: Statistic description of BUZ and BUZ0 in the survey 75 Table 2: Statistic description in number of businesses using financial services 76 Table 3: Providers of financial inclusion services .77 Table 4:Purposes of using Internet transactions 77 Table 5:Saving behaviors 78 Figure 2: Importance of financial inclusion to business performance evaluated by households 80 Table 6: Reason preventing households to use FI services .81 v DECLARATION We, the authors, as a team of five member: Nguyen Tuan Nghia, Le Phuong Mai, Truong Duc Huy, Tran Thuy Trang and Le Thi Mai Vi, guarantee that this is the science research conducted and analyzed independently by our team The figures and numbers used to analyze are reliably proven by reliable sources, or being stated officially, suitable with any standards The results and examinations is based on our discovering, analyzing honestly, carefully and all are appropriate with the current situations of Vietnam Finally, we ensure that those results have never been stated in any other project so far Acknowledgment As the authors of this project, we would like to give our special thanks to our instructor - Ass Prof Le Thanh Tam of National Economic University, who has guided and instructed us during the research Without her supports in finding reference and related materials as well as giving us clear path to approach to such a new topic, we would not have been able to accomplish this research successfully Also, thanks to our interviewers, those who run micro businesses, have helped us complete the surveys, from that data basis, we are capable of running the regression model and make our analysis Your responses have contributed largely to our research, without your responses, we cannot finish our project objectively Another thank is for our consultants which ranges from our peers, our teachers, seniors and anyone who have helped us in conducting the survey and accomplishing the research on time and productively Thank all of you! Chapter 0: Introduction 0.1 Problems statement a Theoretical aspect Financial inclusion is considered essential for the sustainable development of any nations “This is not only for poor people This is for everyone.” (Margarita María Henao Cabrera) It boosts the production, manufacturing and transaction among people within the economy and Therefore; thrives the economy However, financial inclusion has change the situations of the poor more significantly and positively than the rich Because the barrier between the poor and other financial services is significant to some extends, it is considered difficult for them to fund their own business and other essential activities without financial inclusion So, besides the benefits of sustainable growth of the nation's’ economy, the financial inclusion also helps in poverty alleviation b Situational aspects Financial inclusion provides users with access to financial services and activities they need to manage their financial and economic lives Financial inclusion raised a concern in developing nations with its nature of improving living standard of every normal family In Vietnam, these terms are quite new and novel to many people, that even those who work in a financial institution have not been fully informed by these terms Therefore, the aim of our research is that we want to bring international experience and apply knowledge as well as operations in Vietnam in order to help Vietnamese residents expose easily to individual financial services 0.2 Overview of related studies (research situation) Although financial inclusion have not been massively researched in Vietnam, there are some topics that related to and preceding our project Some noticeable project will be mentioned briefly here and after The topic: “ The development of microfinance in Vietnam” by Ths Nguyen Duc Hai This research focus on analysing the three main part: the common problems of micro finance in the financial market, current situations of developing microfinance in Vietnam, and suggestions on enhancing the microfinance in Vietnam He also mentions the international situations from countries all around the world and draw experience and suggestions for the situations in Vietnam Furthermore, by analysing, comparing and examining the numbers and figures, the project of Nguyen Duc Hai gives limitations and causes of the problems, the situation of microfinance can be enhanced effectively and efficiently The topic: “Identifying the model of sustainable development for microfinance providers in Viet Nam The Case of People’s Credit Funds in Ha Tay and Thai Binh provinces” by Le Nhat Hanh In the research, the first issue raised is the concept of financial sustainability of MFP and their theoretical and empirical issues The second issue is analyzing the relationship between efficiency and development objectives of People’s credit fund and determinant of sustainable development model for Microfinance In addition, the last one is for policy implication and recommendation for further studies After analysing figures, run model and identifying the model of sustainable development for People’s credit fund, she gives some recommendations to PCFs, CCF and other support agencies based on those findings And she ends with limitations of the study and suggests areas for further research 0.3 Research objectives a General objective The research is to reveal the relationship between the accessibility of financial inclusion and performance of the micro business in using the financial products and services From that, we would give essential suggestions for both users and the providers of the financial inclusion In terms of providers who is financial institutions, this topic is necessary in acknowledging the importance of inclusive finance to the development of themselves specially and to the whole economy in general Hence, they can achieve optimal improvements in providing financial products and services to the customers On the other hand, regarding the users, in our case is micro households and businesses, they are beneficial in many ways One of them is financial inclusion enables them to run and control their operation easily and therefore, they can enhance their financial performance by using appropriate financial services b Specific objective 1.To be acknowledged about the financial inclusion models in other countries, and lessons for Vietnam To be acknowledged about how financial inclusion is being executed in Hanoi, about its providers and the social problems that it promises to solve To examine if financial inclusion positively affected financial performance of micro business in Hanoi 0.4 Thesis question What is financial inclusion and accessibility toward financial inclusion of micro business? How financial inclusion is executed in Vietnam? ... FINANCIAL INCLUSION ACCESSIBILITY AND FINANCIAL PERFORMANCE OF THE MICRO BUSINESS IN HANOI\ Chapter 4: Chapter BASIC ISSUES ON THE RELATIONSHIP BETWEEN THE ACCESSIBILITY TO FINANCIAL INCLUSION AND THE. .. yet The new contribution of this research is the answer for the question: What is the relationship between the accessibility towards financial inclusion and the business performance of micro business. .. inclusion true effectiveness 0.8 Thesis structure Chapter 0: INTRODUCTION Chapter 1: BASIC ISSUES ON THE RELATIONSHIP BETWEEN THE ACCESSIBILITY TO FINANCIAL INCLUSION AND THE BUSINESS RESULTS OF MICRO