The impacts of social capital on poverty reduction in Vietnam

The impacts of social capital on poverty reduction in Vietnam.The impacts of social capital on poverty reduction in Vietnam.The impacts of social capital on poverty reduction in Vietnam.The impacts of social capital on poverty reduction in Vietnam.The impacts of social capital on poverty reduction in Vietnam.The impacts of social capital on poverty reduction in Vietnam.The impacts of social capital on poverty reduction in Vietnam.The impacts of social capital on poverty reduction in Vietnam.The impacts of social capital on poverty reduction in Vietnam.The impacts of social capital on poverty reduction in Vietnam.The impacts of social capital on poverty reduction in Vietnam.The impacts of social capital on poverty reduction in Vietnam.The impacts of social capital on poverty reduction in Vietnam.The impacts of social capital on poverty reduction in Vietnam.The impacts of social capital on poverty reduction in Vietnam.The impacts of social capital on poverty reduction in Vietnam.The impacts of social capital on poverty reduction in Vietnam.The impacts of social capital on poverty reduction in Vietnam.The impacts of social capital on poverty reduction in Vietnam.The impacts of social capital on poverty reduction in Vietnam.The impacts of social capital on poverty reduction in Vietnam.The impacts of social capital on poverty reduction in Vietnam.The impacts of social capital on poverty reduction in Vietnam.

INTRODUCTION

Research rationales

Along with other traditional capital sources like natural capital, social capital has long been seen as a crucial resource for the creation of products and services and economic progress. (Coleman, 1988; Putnam, 1993; Granovetter, 1995; Narayan and Pritchett, 1997; Munshi and Kaivan, 2003; Xue, 2008; Lancee, 2010) The majority of nations have developed their own sets of standards for measuring social capital Since the early 2000s, researchers from a variety of sectors have seen social capital as a crucial resource in Vietnam To be valuable, this kind of capital must be observable and quantifiable, though (Uphoff and Wijayaratna, 2000) Since social capital is a multifaceted and multi-formal term, there is still debate regarding its exact definition Additionally, not all forms of social capital have the same impact (Granovetter,

For nations to flourish, social and environmental concerns must be considered alongside economic ones Social capital indicators are crucial for assessing the impact of economic, social, and environmental domains Social capital is now prioritized by governments and organizations like the World Bank for achieving policy goals.

Meanwhile, a variety of factors, including a household's sociodemographic makeup, its access to natural resources, and its socioeconomic development capital, affect how well it may rise beyond poverty Despite significant progress, poverty remains a major concern of the community There are about 13.6 million people who are no longer poor, but economically unstable and not in the middle class Even if there is currently little chance of falling into absolute poverty, establishing a higher level of economic stability remains a matter of survival.

In 2018, about 40% of the middle class of 2016 fell into the lower economic class Vietnam is still a poor country, with a low per capita income (GDP per capita in 2000 is about 400 USD),the poverty rate is still high Vietnam has succeeded in drastically reducing poverty thanks to its strong economic growth and extensive provision for the poor Even while some economic sectors have seen significant improvements, the reduction in poverty brought about by economic growth has not been adequate because progress disproportionately favors individuals There is a need to re-examine the internal dynamics of pursuing the current growth model to identify where more interventions can be implemented to ensure the well-being of the population.

Vietnam's Comprehensive Strategy for Growth and Poverty Reduction shows the harmony between economic growth and solving social problems The tasks and objectives in the Comprehensive Strategy for Growth and Poverty Reduction not only require targeted support measures for each specific target group in terms of poverty reduction, but also link policies from macroeconomic policies, structural reform, sector development policies and solutions to social security policies of all sectors and levels to ensure sustainable growth and poverty reduction Social capital, another significant form of capital, has not been fully taken into account for reducing poverty (Abdul-Hakim et al., 2010) Growing research points to the fact that social capital often plays a significant role in economic results since its impacts are often bigger than those of human capital (Hassan and Birungi, 2011) When social actors participate in the production of socially provided products, social capital is formed (Antoci et al., 2008) Indeed, the poor are either completely absent or they participate very little in the activities of political and civic groups Not participating in political activities is also considered political poverty (ỉyen, 2002).

The link between social capital and poverty in Vietnam is not thoroughly investigated.When the government is designing a strategy to combat poverty, it is crucial to comprehend the function that social capital plays in this process However, the significant impact of social capital on poverty reduction in Vietanm has not been taken into account and is difficult to grasp Few studies have been conducted on poverty reduction methods that emphasize social capital; instead, most efforts are aimed at addressing economic growth in general (Do andMinamoto, 2021) This study looked at how social capital and poverty are related to address that unresolved problem.

Literature review

Social capital plays a significant role in economic growth, influencing various aspects of economic activity The study by Marcel Fafchamps (2015) highlights the role of interpersonal relationships in facilitating social exchange, emphasizing the positive impact of search and trust in trade efficiency, especially when formal institutions are inadequate Nguyen Van Phuc (2014) identifies three primary channels through which social capital contributes to economic growth: human capital enhancement, financial market expansion, and the transfer of technology and innovation through corporate networks Overall, these studies demonstrate that social capital strengthens economic activity by fostering trust, collaboration, and information sharing.

In combination, Md Shahidul Islam, Khurshed Alam, and YANLONG ZHANG et al.

(2017) performed research on social capital and poverty in Bangladesh and China—two nations with potentially significant regimes and diametrically opposed economies—on the same topic According to a research report by Md Shahidul Islam and Khurshed Alam (2018),cumulative social capital has numerous favorable socioeconomic effects, particularly when it comes to reducing poverty in emerging nations This essay's goal is to investigate how social capital are related to poverty reduction are related, particularly with regard to Bangladesh.Research supports the relationship between social networks, reciprocity norms, social trust, and civic participation and poverty As social capital has the ability to simultaneously improve the conditions of the poor, this study has significant policy implications for the decrease of inherent poverty in Bangladesh In the meanwhile, earlier research, according to the study of Yanlong Zhang et al (2017), indicates that social capital at the individual and community levels may greatly contribute to the reduction of poverty In this study, we empirically explore the connection between a household's likelihood of living below the poverty line and its social capital To examine the effect of households' social capital on four distinct poverty metrics, we conducted a large- scale cross-sectional survey in the provinces of western China Our findings show that in addition to the structural and relational characteristics of home social networks, these networks' categories of resources, such as commercial relationships, political connections, and social groups Poverty reduction can be significantly aided by the correct association We are also able to gain additional insight into how variations in macro-level institutions impact the efficacy of various social resources in poverty reduction since our study is situated in the context of China's rising economy We find that the impact of appropriate political relationships and social organizations tends to diminish in communities, and that the quality of local institutions is measured by local people's trust in institutions that can regulate the efficacy of political relationships and appropriate social institutions Business interactions proved successful in reducing poverty in both low-income and low-income communities, with higher levels of institutional trust than in communities with lower levels of institutional trust There are two levels of confidence: high and low.

Sharing the same method of using data from Vietnam Access to Resources Household Survey (VARHS), research are implemented different aspects and implied various results. According to Nguyen Hong and Nguyen's (2019) research, a number of factors that contribute to poverty of poor households include a lack of capital for production, a lack of means of production, poor health and a lack of labor, large families, and a lack of job opportunities The paper aims to investigate empirical causes of poverty of the Khmer ethnic people and suggest policy implications to help the Khmer ethnic people escape poverty in Tra Vinh province and the Mekong Delta The authors provide some recommendations based on the existing circumstance and regression results: 1) Pay special attention to lending preferences for those in need 2) Offer occupational training programs to help households of the Khmer ethnic group's earnings 3) Establish specialized infrastructure in places home to Khmer people 4) Promote cultural and religious institutions in regions where the Khmer ethnic group is present 5) Enhance and expand the services and infrastructure of medical clinics This study experimentally compares ethnic minority and majority households in rural Vietnam across 6 characteristics of poverty—financial, educational, health, housing, basic services, and durable assets—over time Results from the five-wave panel data of the Vietnam Access to Resources Household Survey (VARHS) from 2008 to 2016 show improvements in most non-financial aspects of poverty for both ethnic groups, whereas the monetary aspect exhibits the highest levels of deprivation and the lowest rate of decline over the study period The only area where ethnic minority families did better than majority households during the study period and reported improvement was health In numerous aspects of poverty, this study explores the impact of social capital in households and communities of both racial minorities and non- minorities It finds that social capital has significant effects at the community level on reducing poverty in the areas of money, education, housing, and basic services for ethnic minorities, while social capital also has significant effects at the household level on money, durable assets, and basic services The Vietnam Access to Resources Household Survey (VARHS), which included a group of families present between 2008 and 2016, is used to investigate the situation in the papers by Thang (2018), Do, and Minamoto (2021), which analyzed how social capital affects the vulnerability of households The findings imply that being a member of formal and informal social networks as well as government connections is important for raising household income and lowering household vulnerability The findings suggest that social capital, particularly in the form of group engagement, should be taken into account by initiatives aimed at reducing poverty in rural Vietnam.

Since 2010, the UNDP has been releasing Multidimensional Poverty Index (MPI),studies that examine three aspects of poverty: education, health, and living conditions These evaluations are based on a competency-based methodology Aguilar and Sumner (2020) claim that access to clean water, sanitary facilities, power, and good housing are only a few of the fundamental amenities that rural populations frequently lack The majority of the poor in rural regions, according to studies by the World Bank, will be women by 2020, have big families and lots of children, very little formal education, or neither Using data from developing nations, Khan (2000, 2001) discovered that the rural poor were highly connected with the political climate, ethnicity, high dependence rates, and social policy biases.

The relationship between social capital and poverty is attracting the attention of both theoretical and empirical researchers Social capital, according to the literature on the topic, can lessen poverty through at least three different mechanisms, including improving group decision-making, disseminating knowledge that benefits the poor among group members, and curbing opportunistic behavior (Zhang et al., 2017, Osei & Zhuang, 2020; Grootaert & Narayan, 2001; Grootaert and Van Bastelar, 2002) Building social capital takes time, according to Collier (2002), and can frequently take the place of financial and material capital. Because they have a smaller store of private capital and a lower opportunity cost of time, the poor may rely more on social capital than the wealthy do According to Putnam (1994), the poor benefit more from social capital, which is measured by shared norms and trust among members of a community or population as a whole For instance, wealthy families can reassure lenders with collateral, but poor households may look for social assistance loans to boost income or lessen their reliance on income An experiment in Tanzania, Abdul-Hakim et al.'s study in Malaysia, and Guagnano et al.'s study in Europe all shown the considerable and beneficial effects of social capital on poverty as indicated by per capita household income or spending and household wellbeing In Vietnam, not many research have looked at the relationship between social capital and household welfare Van Ha et al (2004) examined the effect of social capital on household wellbeing in Duong O village, Vietnam, using 105 observations of typical households using recycled paper Group membership, social ties, trust, and reciprocity are used to describe social capital Contrary to earlier studies done in other nations, the empirical findings show that the other three social capital variables have a stronger impact on family satisfaction than the number of group members There is considerably more to household income than labor and human capital.

Research objectives

The study investigates the impact of social capital on poverty in Vietnam to develop solutions that leverage social capital for poverty reduction The specific research objectives include:

(1) Systematize the theoretical basis of social capital, poverty towards poverty alleviation, and the general effect of social capital on poverty

(2) Building a model of groups of factors affecting the impacts of social capital on hunger eradication and poverty reduction towards improving the poverty escape rate of households

(3) Analysis of random household survey data in Vietnam using descriptive statistical analysis and quantitative analysis.

(4) Proposing solutions for state agencies to create policies and improve to develop and use social capital as much as possible in improving the poverty rate in Vietnam.

Research questions

- What factors of social capital affect the poverty reduction of households in Vietnam?

- How do the factors of social capital affect the poverty reduction of households inVietnam??

Research scope

- Subject: This study aims to focus on determinants of social capital and poverty

- Geographical scope: This study aims to focus on respondents who are chosen in randomly through Google forms survey.

Research subjects

The subject of the study is social capital and the impacts of social capital on poverty reduction, with households selected according to judgment, based on convenience or accessibility of the survey object.

Research methodology

Source: Author Step 1 Define the research problem: First, the study needs to identify the problem that needs to be researched, specifically here about social capital affecting the poverty reduction of households From there, as a basis for developing a plan and taking the next steps.

Step 2 Refer to previous research: Explore previous studies on the concepts, characteristics, classifications, and measures of social capital and poverty, the situation of Vietnam's poverty rate as well as the use of social capital in Vietnam, along with reference to the influence of social capital on poverty reduction of households in Vietnam.

Step 3 Develop research hypothesis & build model research: After referring to previous studies, the author proceeds to develop research hypotheses and build research models. Research hypotheses and research models need to be associated with practice, need to be clear to ensure significant research results.

Step 4 Design research: After developing the research hypothesis and building the research model, the author builds a questionnaire with appropriate and concise questions, determines the type of scale and minimum sample suitable for the data analysis techniques to be used In the process of developing and completing the questionnaire, the author will conduct a trial survey of some consumers to overcome the limitations of the questionnaire and make timely adjustments before releasing the final official questionnaire.

Step 5 Collect data: The author collects data by surveying forms suitable to the characteristics of the research object and the accessibility and survey The survey subjects of the study are households living in Vietnam.

Step 6 Analyze and evaluate data: All collected data will be aggregated, cleaned, coded for data analysis techniques used in the background Specifically, in this study, the data analysis techniques used include: descriptive statistics, testing the reliability and suitability of the scale, exploratory factor analysis (EFA) and logistic regression analysis by SPSS software.

Step 7 Finalize the research: After evaluating and discussing the research results, the author will draw conclusions to answer the research questions and make recommendations to the state agencies Along with that, identify limitations of the research paper and future research directions for the topic and research area.

The study uses quantitative research methods with primary data collected through survey The research sample was taken from households living in Vietnam, randomly selected without selection The survey was sent in the form of online filling through Google Form within 1 month, via social networks, collected 266 valid votes The questions in the survey are designed based on the research and analysis method behind, with questions about the demographic characteristics, the status of social relationships of the households, and at the same time households' assessment of the use of surrounding social capital.

With the quantitative research method, the study uses the Linkert scale, a scale that usually has from 5 to 7 levels describing people's attitudes towards a certain issue This scale is named after its creator - the American social scientist, Rensis Linkert This scale is becoming increasingly popular and trusted for opinion surveys because it is one of the most reliable scales for measuring opinions, perceptions, and behaviors In this study, the 5-point Linkert scale is used to measure households' opinions and assessment status on surrounding social capital sources The 5-point Linkert scale includes 5 options, with ratings ranging from "Strongly agree" to "Strongly disagree", including one neutral choice.

1.7.3 Survey design and data collection

From the content of the above preliminary scale, the survey has been developed with a clear set of questions with easy to understand and accessible content to the respondents, helping the respondents to easily understand the content of the questions in the survey, understand the purpose of the survey as well as the purpose of the research paper The author has rearranged the content of the preliminary scale above into affirmative sentences with simple words, helping respondents to choose the most correct answer.

The questionnaire consists of questions, divided into 2 parts with the following contents:

Part A: Questions related to personal information of the respondents (Gender, age, occupation, average monthly income)

Part B: Household's assessment of the surrounding social capital use Each question is a statement with 5 levels of agreement from the respondents, equivalent to the 5- point Linkert scale.

The surveyed people will check the blank boxes that match the reality, feelings and thoughts of each person to complete the survey.

Data collection includes: Secondary data and primary data

Secondary data: The information on the theoretical basis is learned, distilled and quoted from the studies of the previous authors, the actual situation data is summarized from the official reports of the General Department Statistics, World Bank, UNTAD, reputable statistical websites.

Primary data: The results of the survey questionnaires include the responses of the respondents with information on: demographic characteristics, the household's assessment of the use of capital resources surrounding society.

Data collection process: The process of collecting primary data through the survey took place over a week with 2 main phases.

(1) Phase 1: Research to collect and test

Based on the responses of the initial survey, the author solicited feedback to refine the survey's content and structure This included editing the questions and response options to enhance their clarity and effectiveness By incorporating the participants' suggestions, the survey was improved to ensure it accurately captured the desired information.

The survey, after being completed, was randomly distributed, and 282 online responses were collected After aggregating, cleaning and sorting, only 266 valid questionnaires were available for data entry and subsequent steps of survey data analysis.

In the study, the author performs reliability testing of Cronbach's Alpha scale, EFA observational factor analysis technique and multivariate regression analysis The sample size determination in this article is based on the minimum sample size when analyzing EFA observational factors and multivariate regression analysis.

THEORICAL FRAMEWORK OF THE IMPACTS OF SOCIAL

Social capital

The fundamental idea of social capital has formed, and academics like Tocqueville, JS Mill, Toennies, and others are linked to it This demonstrates that social capital is not a novel idea, but traditional economists frequently neglect it since it does not fall under the purview of economics Recently, economists have started to pay attention to this idea.

Social capital is a formal notion with several aspects As a result, it is debatable if social capital has a single definition (Tran Huu Quang, 2006) While some academics focus on social capital's impacts, others discuss i t in terms of causality The social network, for instance, is the foundation of social capital, but social capital cannot be created just by the existence of networks of interactions The network must be durable if it is to benefit from its resources, or social capital As a result, the network's quality, particularly trust, social norms, and reciprocity, are crucial in the formation of social capital.

Coleman (1990) connected social capital to moral principles and ethical standards He thinks that having social capital is a must for every person Due to the fact that contracts stipulating one another's obligations aren't always in place, everyone in the network is prepared to support and assist one another According to game theory, social capital would not exist if opportunistic circumstances of mutual exploitation took place Cooperative equilibrium can only be attained when each player has faith in their partner's cooperation.

In general, traits like trust, a moral code, and reciprocity are crucial components of social capital The causal link between social capital's many components, notably the quantity and caliber of networks (such as trust, behavior codes,and reciprocity), hasn't yet been studied fully agreed upon by the scientific community Coleman (1990) asserts that networks are formed on the basis of quality, whereas Dasgupta (2005) contends that individuals are motivated to establish trust and a code of behavior in order to advance their own interests by the large number of networks they have access to.

Putnam, Leonardi, and Nanetti's (1993) study is one of the most widely recognized studies that introduces the concept of social capital and establishes the framework for subsequent research on the topic Social capital is defined by Putnam et al (1993) as the traits of social associations that encourage collaboration for same benefit These traits of social associations may include social networks, norms, or social trust Later, Narayan and Pritchett (1999) proposed three aspects of social capital, including participation in voluntary groups, social norms' presence and social function, and the level of trust, which reflects people's views toward one another Since then, empirical research has defined social capital in accordance with the study's environment and the facts that are available For instance, Dasgupta (2005) defines social capital succinctly as "interpersonal networks" in order to avoid making assumptions about the asset's quality Other studies, on the other hand, view social capital as important resources that may be employed to one's advantage In contrast to Fukuyama (2001), who proposes social capital as a societal pattern that fosters interpersonal collaboration, Newman, Tarp, and Van Den Broeck (2014) explain social capital as the act of exchanging information through involvement in the Women's Union in the example of Viet Nam Along with its additional benefits, social capital is also expected to alter how individuals interact with one another and promote "productive relationships" in the workplace and other informal kinds of associations (Bowen 2009).

Bourdieu's (1986) definition of social capital differs from Putnam et al (1993), as he regards it as the resources tied to a durable network of relationships, rather than the networks themselves This individual-centric perspective treats social capital as a private good acquired through social connections Bourdieu emphasizes the resources embedded within these networks, distinguishing them from the networks themselves.

Different categories can be used to categorize social capital According to scope (at the micro, meso, and macro levels), forms (structural and cognitive), or distinct views (communitarian, networks, institutional, and synergistic view), social capital, for instance, may be divided into many categories (Grootaert & Van Bastelaer, 2002).

Numerous scholars tackle social capital in its polymorphism in addition to their interest in social capital's various facets Indeed, the idea of social capital is expanded with a distinction between horizontal social capital and vertical social capital due to the direction, intensity, and arrangement of linkages in structural social capital (Coleman,

1990) Horizontal connections like friends, neighbors, volunteer organizations, etc are created when similar conditions and equal power exist Vertical social capital, on the other hand, denotes the hierarchical ties and interdependence of the network's members, such as those in religious institutions or labor unions.

It's also important to distinguish between the formal and informal networks' organizational structures While ties with friends, neighbors, and other informal networks have formal connections, organized networks like volunteer groups and religious organizations do not The strength of the connection between each link, in particular how easily members of the network may use the resources accessible to them, is an issue of concern Informal relationships frequently have stronger bonds than formal ones do According to Putnam (2000), the creation of a formal network of connections serves as the basis for the growth of civil society and gives people access to formal forms of social capital including state aid and social help Contrarily, informal connections facilitate access to one's own internal resources,such as monetary and spiritual assistance.

Sometimes, the terms "weakly bound social capital" and "strongly bound social capital" are used interchangeably These ideas are not precisely the same, though Social capital may be thought of as bonding, bridging, and linking social capitals at the micro level Horizontal relationships and interaction within a homogeneous group are examples of bonding social capital It comprises tight relationships between people who have close sentiments or similarity in demographics, attitudes, resources, and knowledge, such as friends and family It is the strong bond between intimate friends or members of the immediate family who have same interests or social traits, such as neighbors, socioeconomic class, coworkers, or religious affiliations, as well as voluntary activities This sort of social capital is directly tied to high levels of trust, reciprocity standards, and mutual assistance offered within those links. This sort of social capital serves as a "informal safety net" since it continues to be a source of assistance when people are in need (Das, 2004) By offering quick support, this capital helps individuals protect themselves from poverty (Cleaver, 2005; Woolcock & Narayan, 2000).

This tying social capital built on family and kinship network gives assistance during harsher situations when the state is unable to supply basic requirements Vertical relationships and connections between the many diverse groupings are established through social capital This is the weak connection connecting many official and informal social participants, including casual friends, coworkers, and volunteers with diverse backgrounds As a result, it can aid individuals in developing new relationships and increasing their access to social support In other words, social capital extends outward to aid individuals in moving forward while social capital clusters give resources for people to live. According to Narayan and Pritchett (1999), there is a beneficial relationship between association density and income, with a growth in association of life increasing revenues by 20%.

Bridging social capital, fostered through membership in diverse social groups, connects individuals with influential figures in institutions like banks and government organizations It facilitates advancement by enabling actors to interact with people from different backgrounds, gaining access to resources, knowledge, and opportunities that can enhance their social status Furthermore, bridging capital allows individuals to build relationships within their communities and with external organizations, offering a wider range of connections and potential benefits.

Last but not least, social connections that help link common people with influential members of society are known as linking social capital As a result, social standards of respect and networks of reliable connections may be thought of as social capital that transcends social power This kind of social relationship can occasionally be transient and erratic The establishment of relationships between individuals and various groups, as well as the social connection and resources found in these relationships, are known as linking social capital (Derose and Varda, 2009) Examples of such relationships include those between members of a community and institutions, or between members of a community and people who have access to resources outside of the community This kind of social capital are able for individuals to access resources and knowledge from social networks other than their own.

Furthermore, this kind of social capital may be employed dishonestly for bias and corruption (Ferlander,

Structural social capital refers to the formal and informal relationships and networks that exist within a community, while cognitive social capital encompasses the shared values, beliefs, and norms that guide individual behavior The distinction between the two concepts lies in their focus on actions versus perceptions: structural social capital emphasizes observable behaviors, while cognitive social capital pertains to the subjective experiences and understandings of individuals within the community.

Poverty

Poverty is a complex socio-economic phenomenon characterized by the lack of essential resources and opportunities necessary for individuals and communities to meet their basic needs and achieve a decent standard of living It encompasses various dimensions, including income, education, healthcare, housing, and social support systems This paper aims to provide a comprehensive definition of poverty by examining the perspectives and definitions proposed by reputable sources The World Bank defines poverty as "pronounced deprivation in well- being" (World Bank, 2021, p 1) The institution employs an international poverty line, set at $1.90 per day, as a monetary indicator of extreme poverty (World Bank, 2021) This threshold is based on purchasing power parity and serves as a benchmark for identifying individuals living in extreme poverty.

Meanwhile, according to United Nations (UN) Perspective, The United Nations conceptualizes poverty as a state of deprivation characterized by the lack of fundamental human needs It includes access to adequate food, shelter,clean water, sanitation, healthcare, education, and information (United Nations, 2020) The UN emphasizes the multidimensionality of poverty, encompassing economic, social, and political dimensions Poverty is seen as a complex issue influenced by structural inequalities, discriminatory practices, and limited opportunities for socio- economic advancement Moreover, The Oxford Poverty and Human Development Initiative (OPHI) spread the definition of poverty when focusing on multidimensional poverty, considering various dimensions such as education, health, and standard of living OPHI defines poverty as "a person's inability to reach a minimally acceptable standard of living" (Alkire & Santos, 2010, p 3) Their approach acknowledges that poverty extends beyond income levels and incorporates a broader range of deprivations that individuals may face.

The definitions presented above illustrate that poverty is a multifaceted concept that extends beyond mere monetary measures It encompasses a range of deprivations and lacks across different aspects of life These definitions highlight the need to consider both income poverty and the broader dimensions of poverty, such as education, healthcare, and social inclusion, to comprehensively understand and address this issue Moreover, these definitions emphasize that poverty is not solely an individual problem but also a societal issue influenced by structural factors, policies, and societal norms Poverty often results from systemic inequalities, limited access to opportunities, and social exclusion Addressing poverty requires comprehensive strategies that encompass income redistribution, social policies, educational opportunities, healthcare access, and efforts to reduce discrimination and marginalization.

To sum up, poverty is a complex phenomenon encompassing deprivation and lack of resources and opportunities necessary for a decent standard of living The World Bank defines poverty as pronounced deprivation in well-being, utilizing an international poverty line to identify extreme poverty The United Nations emphasizes the multidimensionality of poverty, considering the lack of fundamental human needs and broader socio-economic dimensions Sharing the same viewpoint with The United Nations, The Oxford Poverty and Human DevelopmentInitiative adopts a multidimensional approach, focusing on a person's inability to achieve a minimally acceptable standard of living These definitions provide insights into the different dimensions of poverty and highlight the importance of addressing not only income poverty but also broader socio- economic deprivations Understanding poverty from these diverse perspectives is crucial for formulating effective policies and interventions to combat poverty and promote inclusive and sustainable development.

For many socioeconomic groupings, poverty may signify various concepts Who is deemed poor and the evolution of initiatives to reduce poverty are both influenced by the methods used to measure and define poverty (Caizhen, 2010; Haveman and Wolff, 2005; Laderchi et al., 2003; Scheidel, 2013).

Poverty reduction, a multifaceted endeavor, aims to uplift individuals and communities from economic, social, and political deprivation This process empowers people by providing tools, resources, and opportunities to break the poverty cycle.Strategies include enhancing education and healthcare accessibility, fostering economic growth and employment, strengthening social protection, and combating systemic inequalities that perpetuate poverty Empowering individuals to improve their lives is fundamental to poverty reduction.

Analyzing complex issues like alleviating poverty in rural communities involves examining the narratives, expectations, and goals (known as the issue definition) that shape the situation These pre-analytical choices, made before data gathering and assessment, determine the system's characteristics and representations They influence the observation scope and methods, as well as the analysis's conclusions.

The same rural household may be considered poor from one perspective but not poor from another depending on the attributes and indicators used to describe and represent it (e.g., income per capita, literacy levels, access to healthcare, or availability of productive land). Therefore, selecting a different story of poverty results in a different evaluation of how well rural households and communities succeed in reducing poverty In terms of the degree of poverty in homes and communities, as well as the kinds of poverty alleviation strategies that are created and put into practice, it also has various results (Laderchi et al., 2003).

Additionally, the contrast between weak and strong sustainability becomes important if we see poverty reduction as a matter of long-term livelihood sustainability The paradigm of weak sustainability, according to Daly

(1990), is based on presumptions about the substitutability of various forms of capital, which indicate that preserving the overall stock of capital, regardless of how it is constructed, is sufficient for sustainability Strong sustainability is predicated on the idea that various forms of capital are complementary rather than interchangeable They need to be maintained separately as a result.

In keeping with this, it is also conceivable to distinguish between poverty reduction that is weak and that is strong (Scheidel, 2013) Weak poverty reduction makes the assumption that gains in one aspect of wellbeing can make up for losses in other others For instance, increased income (a flow) from non-farm occupations that enable people to purchase food might help offset the loss of land (a fund, or asset), which is used to grow food, in order to achieve food security However, there are times when gains in one aspect of poverty cannot counteract declines in other others For example, an increase in (short-term) flows (such as money or food) to improve deprivation cannot always make up for or replace the loss of underlying finances (such as fertile land or favorable working conditions) that enable the creation of such flows over the long run Strong poverty alleviation must therefore pay attention to these circumstances where tradeoffs are undesirable and concentrate on expanding access to and control over the productive funds that enable producing flows and leading long-term lives of dignity (Scheidel, 2013).

An essential component in evaluating and improving the socioeconomic circumstances of a nation is the measurement of poverty Various techniques and indicators are used by governments, international organizations, and scholars to measure poverty and comprehend its multifaceted nature.

There are several ways to assess poverty It contributes significantly to quantifying poverty in terms of income- based measures by offering a quantitative evaluation of the financial health of individuals or households Setting a poverty line, which establishes the income minimum below which people or households are regarded as living in poverty, is one popular approach The cost of living, basic requirements, and societal conventions are just a few of the elements that go into determining the poverty line Poverty thresholds that are particular to a nation or region are frequently established by national statistics agencies and organizations The worldwide poverty line established by the World Bank is

$1.90 per day (at purchasing power parity in 2011), and it is widely used to calculate global poverty rates (World Bank, 2018) However, many nations also have their own poverty thresholds that are adapted to their own economic circumstances For instance, the Federal Poverty Guidelines are used in the United States to determine eligibility for specific government programs These guidelines take into account elements including family size and composition. Income-based poverty lines have limits since they frequently only consider money or consumption and fail to account for other aspects of poverty, such as access to healthcare, sufficient housing, or education.

The poverty gap index and its use in measuring poverty are covered by Ravallion (1992) The poverty gap index measures the level of poverty that people or households living below the poverty line feel, giving us a more nuanced view of poverty The average income or consumption gap for those who are poor is calculated The difference between an individual's earnings or consumption level and the poverty line is taken into consideration by the poverty gap index Policymakers may evaluate the intensity of poverty and create policies accordingly by utilizing this information For instance, a bigger poverty gap index suggests a greater need for social safety nets or redistributive measures To determine certain regions or populations where poverty is most severe, the poverty gap index may be estimated at many levels, including the individual, household, and regional levels Using this knowledge, focused efforts may be made to reduce poverty.

The impacts of social capital on poverty reduction

Social capital plays an essential role in providing access to necessary goods and services that help alleviate poverty Strong social networks and relationships act as conduits for beneficial chances and information According to Lin (2001), people who are part of active social networks, for instance, are more likely to be aware of job vacancies, training opportunities and educational options They can use their social capital to access mentoring or skill-building programs, receive job vacancies and receive references People may strengthen their human capital, raise their earning potential, and break the cycle of poverty thanks to this improved access to employment and education (Woolcock & Narayan, 2000).

Social capital may assist people have better access to healthcare services People frequently share information about accessible healthcare providers, cost- effective treatment alternatives, and preventative measures in tight-knit communities (Berkman et al., 2000) Strong social relationships make it easier to share medical information and guide people through challenging healthcare systems Additionally, social networks can offer emotional support in times of health problems, easing the financial load of healthcare costs and fostering wellbeing (Petersen, 2018) By utilizing social capital, people and communities can get access to healthcare resources and services that might not otherwise be available, ultimately lowering poverty and health-related vulnerabilities.

Social capital can give access to other support networks that reduce poverty in addition to job, education, and healthcare Community-based organizations, informal savings and credit clubs, and reciprocal eldercare and childcare arrangements are a few examples of these support structures (Narayan & Pritchett, 1997) By using these social networks, people may get help with their finances, get advice on how to manage their resources, and take part in group initiatives to solve common problems In order to help people and communities deal with changes, overcome economic challenges, and lessen their risk of getting into poverty, social capital increases the safety nets that are accessible to them (Aldrich & Meyer, 2015).

Social capital has a significant role in the reduction of poverty through major channels including economic opportunity and entrepreneurship Strong social capital means that well-connected people and groups are more likely to have access to the financial resources, markets, and commercial networks needed to engage in activities and activities that generate revenue (Woolcock & Narayan, 2000) By utilizing their social networks, people can obtain loans, investments, or grants from reliable sources that may not be accessible through other social networks. institutional institution for finance.

Social capital fosters information sharing, collaboration, and trust among economic actors, creating a favorable environment for economic growth Trust is crucial in business transactions as it reduces transaction costs and fosters cooperation Individuals with strong social ties engage in reciprocal relationships, maintain commitments, and conduct profitable exchanges This trust allows entrepreneurs to collaborate, access business advice, and share resources, leading to increased economic activity and improved quality of life.

Social capital also increases the efficiency and scope of networks for sharing knowledge Through their social connections, those who are a part of powerful social networks may obtain market knowledge, industry trends, and useful contacts (Lin, 2001) They have access to knowledge about new prospects, client demands, and prospective collaborations thanks to this informational advantage Utilizing this interconnected information, people may find market niches that support economic growth and the eradication of hunger as well as establish competitive tactics.

In general, social capital brings about chances for both individuals and communities in the economy by giving them access to markets, money-related means, and networks for businesses This leads to more economic happenings, business ventures, and improved ways of living This is because social capital pushes for trust, teamwork, and the sharing of information among those involved in economic activities To make things even better, people who make policies and those who put ideas into practice can lend a hand in poverty-reduction efforts They can do this by encouraging the growth of social capital through making networks that welcome everyone, building trust, and creating systems that support these efforts This way, more people can access chances to better their lives through economic opportunities and resources.

To wrap things up, the scenario at hand presents us with a puzzling theoretical challenge This is because social capital leads to distinct results, and in some countries, it's tied to poverty in a way that's opposite to what you might expect What makes it even more interesting is that the advantages of social capital change a lot depending on which country you're examining This is closely connected to how the country's economy operates and how goods are produced Now, to really dig deep and get a clearer understanding of what's happening in

Vietnam, we need to give this issue another round of investigation This is a crucial step as it will provide us with a better hold on the situation and allow us to uncover the specifics of what's occurring in Vietnam.

CHAPTER 3: AN ANALYSIS OF THE IMPACTS OF SOCIAL CAPITAL ON POVERTY

Factual situation in Vietnam

3.1.1 Current status of poverty in Vietnam

Between 1993 and 2014, Vietnam's amazing rise from a low-income to middle- income position pushed 40 million people out of poverty The poverty rate decreased at that time, from about 60% to 14% China's rate of per capita growth since 1990, which as of 2017 averaged 5.6 percent annually, has been the second-highest Vietnamese people now have higher levels of education and may anticipate living longer than those in most other nations with comparable incomes.

Prior to 2015, Vietnam employed the income poverty metric, defining the poverty line based on per capita monthly income that provided an estimated daily caloric intake of 2,100–2,300 Kcal and necessary non-food expenditures Utilizing this line, the MOLISA identified and classified low-income families, tracking poverty rates through the National Census on Poverty prior to implementing Poverty Reduction Programs These lists were updated annually during program implementation.

A major step in Vietnam's shift from an income-based to an MDP approach was made in November 2015 when the Vietnamese government adopted national multidimensional poverty (MDP) metrics for use from 2016 to

2020 Notably, Viet Nam was one of the first nations in the Asia-Pacific to adopt the MDP strategy to end poverty in all of its forms The country's five-year Socio-Economic Development Plan (2016-2020) established a national average MDP reduction objective of 1.5 percent yearly and 2-4 percent in mountainous ethnic minority areas TheNational Target Program for Sustainable Poverty Reduction (NTP-SPR, 2016–2020) was designed using the MDP measurements, which take into account income and non-financial factors like housing, access to water and sanitation,education, and health services, as well as social and health insurance This allowed for the identification of low-income households that qualified for program support, poverty reduction, and social assistance policies.

The World Bank's (WB) "From the Last Mile to the Next Mile" Poverty and Equity study revealed a significant reduction in poverty in Vietnam from 2010 to 2020 The report, published on April 28, indicates that poverty rates in lower-middle income nations fell from 16.8% to 5% during this period, according to the bank's poverty threshold of 3.20 USD per day This decline represents a successful effort to lift ten million people out of poverty.

It evaluates Vietnam's achievement in eradicating poverty throughout the ten years leading up to 2020 and looks at what is required to maintain the upward economic mobility and financial security of the millions who have escaped poverty Vietnam's economy has flourished and grown into one that is in high demand abroad in the less than

50 years since the war's conclusion and the 35 years since the Doi Moi reforms The analysis estimates that GDP per person (2015 US dollars) would increase from 481 USD in 1986 to 2,655 USD in 2020 Living conditions in Vietnam have improved as a result of the country's rapid economic expansion Poverty rates decreased from 16.8% in 2010 to 5.0 percent in 2020, according to the World Bank's Lower-Middle Income Class (3.20 USD/day 2011PPP) poverty threshold 5.7% of Vietnamese people are thought to be multidimensionally poor, according to early projections for 2019.

The Last Mile problem is persistently higher rates of poverty among particular populations, yet some encouraging patterns have arisen Between 2010 and 2020, the rates of poverty among several persistently disadvantaged groups—including households in the Midlands and Northern Mountains and members of ethnic minorities—were cut in half at least Workers from ethnic minorities are leaving agriculture more swiftly.About 23% of ethnic minorities worked in manufacturing in 2020, which is about the same percentage as the Kinh majority at the beginning of the decade.

Vietnam's growth over the past ten years has been mostly inclusive as household welfare has increased across the board As many families shifted out of poverty within a single generation, there were several pathways out of poverty for most populations In a changing global economic and climatic environment, Vietnam is a lower-middle- income nation facing a difficult and uncharted route to upper-middle and high-income country levels.

Table 3 1 Poverty rate in VietNam (2015 – 2021 period)

Poverty rate in VietNam (2015 – 2021 period)

Although there has been significant progress, poverty is still a major public concern In a study of the populace, poverty and hunger were identified as the most important problem that the government must address from 2015 to

2020 Many individuals expressed anxiety over slipping back into poverty when asked why it was the key issue, but even more believed that poverty was a general drag on the economy and diminished national image Beyond the poor, a wider range of people in society are economically vulnerable There are approximately 13.6 million people who are no longer in poverty but are neither economically stable nor in the middle class Even while there is currently little chance of slipping into absolute poverty, establishing greater levels of economic stability is still a vital issue By

2018, about 40% of the middle class of 2016 had fallen to a lower socioeconomic class.

Viet Nam had 609,049 poor residences at the end of 2021, while there were 850,202 near-poor households, or3.11 percent, of all households There were no impoverished houses in Ha Noi, Hai Phong, Da Nang, Ho Chi MinhCity, Binh Duong, or Tay Ninh, according to six localities The greatest rate of poverty, however, was found in DienBien, where it was 27.33 percent, followed by Ha Giang (18.54 percent), Cao Bang (18.36 percent), and Bac Kan(17.22 percent) The near poor and poor household rate in Vietnam will increase from 5.2 percent in 2020 to 9.35 percent in 2022 as a result of the new multi-dimensional poverty line (approved in 2021), which means an additional 10 million people will benefit from the government's social protection & poverty reduction policies and programs in the years 2021–2025 The Multi-Dimensional Poverty (MDP) Report 2021 presented this in Ha Noi this morning The Committee for Ethnic Affairs (CEMA), General Statistics Office, Ministry of Planning and Investment (MPI), and the Ministry of Labour - Invalids and Social Affairs (MOLISA) collaborated to produce the report The Australian Government Department of Foreign Affairs and Trade (DFAT) provided financial support, and the Centre for Analysis and Forecasting under the Viet Nam Academy for Social Science (CAF/VASS) provided technical assistance.

Viet Nam became a pioneer in the Asia-Pacific Region by incorporating multidimensional poverty into national poverty analysis and targeting after adopting the national multidimensional poverty line in 2015 TheCOVID-19 epidemic was a significant setback in the fight to eradicate obstinate poverty, but the continuation of poverty among ethnic minority groups and in coastal, island communities remain a concern for Viet Nam in terms of achieving the Sustainable Development Goals (SDGs).

Table 3 2 Poverty rate by residence and by region Poverty rate by residence and by region

Nothern Midlands and mountain areas

North Central and Central coastal areas

Source: General Statistic Office (2021) 3.1.2 Current status of social capital in Vietnam

One's social capital in Vietnam is made up of their connections to their family, close friends, and official social organizations (such as the Communist Party of Viet Nam, the government, and labor unions), as well as other social networks like those in politics or organizations (Chien 2013) The family is viewed as playing a crucial part in the social life of the vast majority of Vietnamese people among them According to R Dalton, Hac, Nghi, and Ong's findings, just 17% of Vietnamese people get out with friends on a weekly basis whereas 32% of Vietnamese spend time socializing with coworkers The activities of family and other social networks differ more in Vietnam than in other Asian nations, notably China, Japan, and the Philippines, even if these nations also consider their own families to be the most significant social network Particularly, Japanese, Filipinos, and notably Chinese strongly value networks related to work; 62% of Chinese people meet together with coworkers on a weekly basis, compared to 34% and 21% for the Philippines and Japan, respectively According to R Dalton's study, Vietnamese are more likely than Chinese and Filipinos to take friendships for granted since they only see their friends half as often.

Vietnam's economic growth has fostered significant societal modernization, leading to an increased value placed on work-related networks Traditional social networks such as community groups, sports clubs, political organizations, and volunteer health services are experiencing heightened participation rates, with over 20% of Vietnamese actively involved in such groups The average Vietnamese individual belongs to 2.33 groups, exceeding the membership rates in comparable countries like China, Japan, and the Philippines.

Research model and hypothesis

Inheriting and developing previous studies, the author has come up with a research model with the following research hypotheses:

Neighborhood cohesion and Poverty reduction

The contribution of social capital to preventing social exclusion and reducing poverty was investigated by Flores and Rello in 2003 They discovered that social capital was a crucial tool for raising living standards and combating social isolation among the various groups A positive political and economic climate may be maintained and new difficulties may be solved with the aid of social capital The alleviation of many issues, such as poverty and food insecurity, depends on having strong relationships with neighbors Broson demonstrated a relationship between neighborhood social cohesiveness changes over time and food insecurity.

H1: Factor Neighborhood cohesion of social capital has a significant effect on Poverty reduction.

Social supportCivic participationSocial networkNeighborhood cohesion

Social trust and Poverty Reduction

When seen from a macro perspective, social capital may be described as a resource for any specific civilization that results from the association of common beliefs, values, and standards Indeed, a greater level of trust between the community's associations and itself might have a big economic benefit.

Moreover, social capital eliminates the need for pledging an asset as collateral for bank financing The majority of microcredit in Bangladesh is disbursed based on trust Research (Sarker and Islam, 2014) indicates a higher likelihood of microcredit approval for individuals with established trustworthiness compared to those without.

Economic historians place emphasis on the statement made by Greif (1989) that the development of recognized organizations that encourage trusts (self-enforcing contracts) had a significant impact on the growth of long-distance commerce throughout the Middle Ages When government officials create policies that have better approval rates and are simpler to implement, trust is also crucial Putnam (1995) provided examples of how regional governments effectively offer services in northern and central Italy as opposed to the civic south, where confidence is lower By enabling direct political engagement and influencing economic policy, civic cooperation and trust do produce economic consequences (Knack and Keefer, 1997).

Trust and economic inequality are strongly linked, as evidenced by multiple studies Knack and Keefer (1997) demonstrated a significant correlation between trust and the Gini coefficient, a measure of income disparity Elgar (2010) analyzed data from 33 countries and found that a 1% increase in income inequality leads to a 0.12% drop in trust Similarly, Barone and Mocetti (2016) discovered that a 1% increase in the Gini coefficient corresponds to a 2% decrease in overall trust These findings suggest that inequality perpetuates itself and negatively impacts societal trust.

H2: Factor Social trust of social capital has a significant effect on Poverty reduction.

According to Taga (2013), social capital gives people power by establishing connections between them and other institutions, social networks, and structural networks Association with political leaders and members of the community has proven to be beneficial for problem-solving and resource development (Taga, 2013) One of the reasons of poverty may be the lack of engagement with influential individuals (Taga, 2013) They gain from interpersonal and racial connections since these connections open up a variety of chances and financial resources (Taga, 2013) People in China are 2.12 times more likely to be impoverished than those with large personal social networks, according to research by Sun and colleagues (2009).

Because one may utilize relationships to communicate with people to share resources, spot and seize opportunities, enhance lives, and other things, social networks can be thought of as one's asset base design, create commercial projects, or question prevailing notions (Gilchrist and Kyprianou, 2011) Additionally, for the impoverished, social networking is a crucial survival tactic The impoverished build trust within their networks and can borrow from and trade products and services with other members of their network (Yen, 2002) Families, loved ones, and social networks are crucial tools for helping people deal with challenges Financial and employment help may be available to those who preserve healthy ties with their family and friends (Taga, 2013).

H3: Factor Social network of social capital has a significant effect on Poverty reduction.

To eliminate poverty, locals must become more active in their neighborhoods and cultivate partnerships with neighborhood groups through constructive interactions In their 2009 study, Johannes and CRES investigated the role that social capital had in Cameroon's poverty They found that involvement in associations and decision-making metrics were both positively connected with poverty reduction He stated that in order to accomplish the MillenniumDevelopment Goals, which include reducing poverty, authorities should concentrate on fostering social capital Participation in decision-making decreases the chance of becoming impoverished in microcredit groups by 22.5%, according to research by Balogun et al.

(2011) In rural Bangladesh, Sarker and Islam (2014) demonstrate a correlation between membership density and availability to microcredit Similar to this, Haddad and Maluccio (2003) shown that trust and group participation aided in family well-being Higher levels of enjoyment are correlated with involvement in social and financial organizations. Reduced engagement in networks built around non-profit endeavors is also a result of poverty (Yen, 2002).

H4: Factor Civic participation of social capital has a significant effect on Poverty reduction.

Social support and Poverty reduction

People who live in poverty environments have to deal with a number of problems on a daily basis, such as a shortage of education and earnings, joblessness, poor working conditions, unstable housing, a lack of food, drought experiences, stigmatization, feelings of shame and humiliation, ongoing stress, ownership of one's own poverty, urban and gender violence, and psychological suffering When faced with such circumstances, social and governmental initiatives, NGOs, religious organizations, and neighborhood and family relationships illogically arise as coping mechanisms and mechanisms for maintaining poverty The many sources of support work together, interact, and overlap rather than acting alone As a result, when one source does not adequately support the topic, the others may become more expressive The idea of "support bases" is discussed by Dimenstein et al (2005) from the viewpoint of relational link that encourage the growth and potentials' development The authors emphasize the help available in a variety of settings that supports families, which, in the modern environment, cannot cover all requirements of individuals It's crucial to emphasize the dangers of institutionalizing particular forms of support Nowadays, this regularly happens, frequently losing community support, as a number of community groups and their leaders operate in a centralized, bureaucratized manner, frequently under the State's control and isolated from bigger issues of community life and a broader social involvement These community leaders, to whom this role was initially given because of their reputation as community caregivers (Góis, 2012), ultimately take on an institutional role, compassion lack and compassion to the concerns of the residents and concentrating on public funding requests and projects supported by public and private institutions Despite the happiness and sense of control that social support can bring(Griep, 2003; Valla, 1999), it is important to take into account the possibility that these sources of support could end up being alienating because people view them as the only way to "be saved" from problems, which inhibits decision- making and autonomy (Guzzo & Lacerda Jr., 2007) When social and human rights are utterly divorced from people's everyday lives, individuals turn to social support networks as a communal means of coping (Valla, 2002).Regarding religious support, professionals who operate in impoverished environments should keep in mind how crucial it is to avoid forcing a particular religion on their subjects or taking into account whether they should adhere to one at all Instead, it is the professional's responsibility to understand the subjects' sources of support and to see them in their ideal state According to Montero (2004), interactions that are collaborative and dialogical between internal and external community agents are essential for the growth of community activity What Montero (2004) referred to as internal agents, who play the roles of interlocutors and mobilizers, are individuals who live in the area, including residents in general, neighbors, associations, community leaders, organizations of young and elderly people, women,midwives, mourners, health agents, and others The same author asserts that it is crucial for external agents (public policy experts, NGOs, private companies, church workers, etc.) to strengthen this type of relationship when beginning their interventions in order to encourage participatory action and subsequently improve their actions through this articulation Social support takes on a multifaceted character and encompasses the potential for developing alternative strategies to deal with impoverished circumstances by encouraging articulation, shared action, bonding, and the creation of work that is related to and congruent with people's everyday lives.

H5: Factor Social support of social capital has a significant effect on Poverty reduction.

Developing questionnaires and selecting research scales

The author refers to the questionnaire from the study of Md Shahidul Islam and Khurshed Alam (2018) on Factors of social capital affecting poverty reduction in Bangladesh The author builds a scale based on Neger's questionnaire with the elements of Neighborhood cohesion, Social network Social trust, Civic participation, Social support, to measure the influence of these factors such as the influence of social capital on the reduction poor The author selects factors suitable to the research context in Vietnam to apply, with a questionnaire consisting of 18 questions for 5 factors that are 5 independent variables and 1 question for dependent variables.

Specifically, the factor groups of the independent variable are coded as follows:

Table 3 3 Factors of Social capital

1 N1 In an emergency or if I needed their assistance, my neighbors would come to my aid.

2 N2 I could ask a neighbor for guidance if I needed it on a certain matter.

3 N3 There are a lot of people willing to assist me if I need them.

4 N4 I'd be willing to collaborate with others on a project that will enhance my community.

1 ST1 There are many people I can rely on.

2 ST2 I can usually count on people who admire me.

3 ST3 If I am not alert, other people will not utilize me

4 ST4 Most individuals, if they had the chance, would try to take advantage of me.

1 SN1 I have many of good friends.

2 SN2 I have more close family members.

3 SN3 I have a lot of nice friends who I can visit.

4 SN4 There are many people without my friends and family.

I have volunteered for a community group or participated in a local community action in the previous three years to cope with an emergency.

2 CP2 In the last 12 months, I took part in at least one political activity.

3 CP3 I have actively joined Democracy and Electoral Assistance throughout the past

1 SS1 I have someone to look after me when I'm unwell or uncomfortable.

For practical assistance with daily tasks like housework or a little project, I have access to a large number of individuals.

3 SS3 When I'm feeling a little down and need someone to chat to, I have a lot of individuals to turn to.

The 5-point Linkert scale for the variable is shown as follows: 1 = Strongly disagree

Using the Cost of Basic Needs technique, any home with a per capita income below a specific poverty level is deemed to be poor According to the CBN technique, poverty lines define the level of per capita spending at which a household's members may be anticipated to achieve their basic requirements, which include consumption of both food and non-food items (BBS, 2011) According to this argument, those who are poor are those who remain to live below poverty, while those who are not poor continue to live above it.

Research results

The author surveyed and collected 266 valid questionnaires The general information of the survey subjects includes the Respondent’s Gender, the Head of Household's Gender, the Age, and the Household's Income.

Source: Author’s calculation based on survey

Table 3 5 Statistics on Head of Household's Gender Head of Household's

Source: Author’s calculation based on survey

Statistics show that the proportion of men and women participating in the survey is not too big The survey results obtained were 102 women and 164 men However, when asked about the gender of the head of the household, statistics show that the majority of men are the breadwinners of the family, men account for 84.6% and women only 15.4%.

Source: Author’s calculation based on survey

The results of the survey on age have 266 answers, with the largest number being from 36 to 45 years old (115 people, accounting for 43.2%) The age group from 46 to 55 years old has the second largest number with 70 people,accounting for 26.3%, followed by the group over 55 years old Finally, the table of results obtained has 25 people aged between 20 and 35 years old Evidently, this age distribution seamlessly aligns with the expected sample portrayal, where a substantial proportion of respondents, primarily aged 36 and beyond, partake in the survey This collective representation substantiates the survey's reliability and legitimacy, capturing insights from individuals at a reasonable life stage for active participation in such a study.

Source: Author’s calculation based on survey

The survey results collected 266 votes divided into 2 categories Low income level from 0 to 2 million with 95 households, is considered below the poverty line according to income criteria There are 171 households with an income of over 2 million VND, accounting for more than 60% of the total number of households that are assessed as standard households with average living standards as non-poor households.

3.4.2 Result of testing reliability coefficient Cronbach’s Alpha

Testing the reliability of the scale (Cronbach's Alpha) is a method that allows to assess the reliability of the selection of observed variables to reflect the characteristics of a common factor, through which the variables have a good contribution in measuring the selected factor to form a reasonable scale for the characteristics of that factor.

Within the scope of this study, the author uses two criteria to evaluate the reasonableness of small factors in the observed variable According to Nunnally (1978), Peterson (1994), Slater (1995), Cronbach's Alpha coefficient is greater than

0.6 to determine the scale is eligible to use According to Nunnally and Bernstein (1994), the correlation coefficient of the sum of each observed variable is greater than 0.3, the variable meets the requirements and can be used to explain the research concept.

Specifically, in the study, the author tests the reliability of Cronbach's Alpha of the small factors N1, N2, N3, N4 for the independent variable Neighborhood cohesion

(N) to assess the reliability of the small factors, if suitable will continue to be used for the next analysis, if not suitable can be discarded Similarly, the author tests with the remaining 4 independent variables.

The author tested the Cronbach's Alpha reliability coefficient of the scale using SPSS software, obtained 5 results of 5 groups of scales Neighborhood cohesion (N), Social network (SN), Social trust (ST), Civic participation (CP), Social support (SS) as follows:

The reliability coefficient of the scale of Neighborhood cohesion (N)

Neighborhood cohesion factor (N) includes 4 observed variables coded as N1, N2, N3, N4, respectively The results of the reliability test are shown in the table below:

Table 3 8 Reliability coefficient of the Neighborhood cohesion scale

Neighborhood cohesion (Cronbach’s Alpha coefficient = 0,862; N = 4)

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Cronbach's Alpha if Item Deleted

Source: Author’s calculation based on survey

From the analysis results, the Neighborhood cohesion factor (N) with Cronbach's Alpha coefficient is 0.862 (greater than 0.6) and no observed variable has “Cronbach's Alpha if Item Deleted” is larger than Cronbach's Alpha coefficient; The correlation coefficient of the total variable of the observed variables is greater than 0.3, showing that all variables explain the research factor well.

The reliability coefficient of the scale of Social trust (ST)

Social trust factor (ST) includes 4 observed variables coded as N1, N2, N3, N4, respectively The results of the reliability test are shown in the table below:

Table 3 9 Reliability coefficient of the Social trust scale

Social trust (Cronbach’s Alpha coefficient = 0,825; N = 4)

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Cronbach's Alpha if Item Deleted

Source: Author’s calculation based on survey

From the analysis results, the Social trust factor (ST) with Cronbach's Alpha coefficient is 0.825 (greater than 0.6) Almost observed variable has “Cronbach's Alpha if Item Deleted” is larger than Cronbach's Alpha coefficient, except ST3 “If I am not alert, other people will not utilize me” N3 will be remove from the model The correlation coefficient of the total variable of the observed variables is greater than 0.3, showing that all variables explain the research factor well.

The reliability coefficient of the scale of Social network (SN)

Social network factor (SN) includes 4 observed variables coded as SN1, SN2, SN3, SN4, respectively The results of the reliability test are shown in the table below:

Table 3 10 Reliability coefficient of the Social network scale

Social network (Cronbach’s Alpha coefficient = 0,760; N = 4)

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Cronbach's Alpha if Item Deleted

Source: Author’s calculation based on survey

From the analysis results, the Social network factor (SN) with Cronbach's Alpha coefficient is 0.760 (greater than 0.6) and no observed variable has “Cronbach's Alpha if Item Deleted” is larger than Cronbach's Alpha coefficient The correlation coefficient of the total variable of the observed variables is greater than 0.3, showing that all variables explain the research factor well.

The reliability coefficient of the scale of Civic participation (CP)

Civic participation factor (CP) includes 3 observed variables coded as CP1, CP2, CP3, respectively The results of the reliability test are shown in the table below:

Table 3 11 Reliability coefficient of the Civic participation scale

Civic participation (Cronbach’s Alpha coefficient = 0,797; N = 3)

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Cronbach's Alpha if Item Deleted

Source: Author’s calculation based on survey

From the analysis results, the Civic participation (CP) with Cronbach's Alpha coefficient is 0.797 (greater than 0.6) and no observed variable has “Cronbach's Alpha if Item Deleted” is larger than Cronbach's Alpha coefficient. The correlation coefficient of the total variable of the observed variables is greater than 0.3, showing that all variables explain the research factor well.

The reliability coefficient of the scale of Social support (SS)

Social support factor (SS) includes 3 observed variables coded as SS1, SS2, SS3, respectively The results of the reliability test are shown in the table below:

Table 3 12 Reliability coefficient of the Social supoort scale

Social support (Cronbach’s Alpha coefficient = 0,827; N = 3)

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Cronbach's Alpha if Item Deleted

Source: Author’s calculation based on survey

From the analysis results, the Social support (SS) with Cronbach's Alpha coefficient is 0.827 (greater than 0.6) and no observed variable has “Cronbach's Alpha if Item Deleted” is larger than Cronbach's Alpha coefficient The correlation coefficient of the total variable of the observed variables is greater than 0.3, showing that all variables explain the research factor well.

Thus, after running the Cronbach's Alpha reliability test, the author removed 1 observed variable ST3, keeping the following 17 variables: Neighborhood cohesion

(N) includes variables N1, N2, N3, N4; Social trust (ST) includes variables ST1, ST2, ST4; Social network (SN) includes variables SN1, SN2, SN3, SN4; Civic participation (CP) includes CP1, CP2, CP3; Social support (SS) includes SS1, SS2, SS3.

3.4.3 Result of Exploratory Factor Analysis (EFA) Method

The EFA exploratory factor analysis method is used to evaluate the convergent and discriminant value of the scale, thereby reducing the set of many observed variables into a smaller set with significant factors than The factors that are gathered together are significant and belong to an independent variable that still explains the data.

The criteria in the EFA analysis include:

(1) Kaiser–Meyer-Olkin (KMO) coefficient greater than 0.5 and less than 1 (0.5≤ KMO ≤1);

(2) Bartlett's test of sphericity is statistically significant with Sig < 0.05;

(3) Eigenvalue index is greater than 1;

(4) The explanatory variance is more than 50%;

(5) Factor loading factor is greater than 0.5.

The factor analysis method used for this preliminary assessment is principal component analysis with perpendicular rotation (Varimax).

Discussion

The Cronbach's Alpha coefficient of reliability was employed, demonstrating that the observed variables within most factor groups exhibit substantial reliability and significantly impact poverty reduction.

Based on running EFA factor analysis, it has shown the results of all 5 groups of factors: Neighborhood cohesion (N), Social network (SN), Social trust (ST), Civic participation (CP), Social support (SS) with small elements are arranged in the correct group order Small factors explained a factor as a big factor Five groups of factors have shown the discriminant of groups of observed variables explaining different factors.

Higher ratings of social network, social trust, civic participation, and social support increase the likelihood of poverty reduction This supports the hypotheses proposed in the study All five factors significantly impact poverty reduction, with an approximate 10-fold increase when household assessments improve by one unit Social support exhibits the strongest influence, followed by social network, civic participation, and neighborhood cohesion Social trust also positively contributes to poverty reduction, albeit less strongly than the other factors.

4 variables (only increased by 3 times).

The findings of the study reveal a significant correlation between a diminished level of social networking and an elevated likelihood of poverty within households This observation underscores the pivotal role that social networks play in economic well-being This sentiment is echoed in the work of Gulati (1999), who emphasizes the substantial value of social networks in cultivating strategic business partnerships Conversely, a distinct pattern emerges where advocacy collectives mobilize around shared public interests; however, these coalitions tend to be under the sway of more affluent demographics, thereby limiting the participation of the impoverished (ỉyen, 2002) While community organizers diligently work to foster and fortify connections among local residents, thereby exerting an impact on the larger community dynamics, the most marginalized segment of society finds itself unable to forge links with these interconnected networks (ỉyen, 2002).

The impoverished demographic experiences a notable deficit in their social network engagement, primarily attributed to their limited material resources that hinder their participation within groups Furthermore, their non- material resources prove insufficient, particularly when interacting with individuals from diverse socio- economic backgrounds Besides, the social networks of those in poverty offer marginal assistance in the pursuit of poverty alleviation Research by Taga (2013) highlights a distinct contrast in outcomes: individuals affiliating with higher aligning with a circle of fellow indigent peers offers scant utility in resource acquisition and opportunity cultivation (Taga, 2013).

The present study's findings shed light on a compelling connection: a diminished degree of civic engagement heightens the likelihood of households falling into poverty This parallel is drawn from the research of Allahadi (2001), who similarly demonstrates that reduced involvement in the decision-making processes exacerbates poverty in rural regions of Iran Within these contexts, impoverished individuals occasionally attend village meetings to gather information, but their opportunities for active participation or influence in these gatherings remain rare This discrepancy is even more pronounced for women, as entrenched traditional norms often bar them from attending such assemblies Correspondingly, not only are economically disadvantaged individuals denied access to national- level institutions, but this exclusion extends to local levels as well In contrast, those among the economically disadvantaged who establish positive rapport with affluent and middle- class neighbors reap not only employment opportunities but also enhanced amenities, services, safety, and security (Greenbaum et al., 2008) A consensus among many scholars suggests that insular social groups can perpetuate poverty across generations Engaging in local associations can empower individuals to collectively formulate decisions and effect unified actions A heightened level of civic involvement signifies an ability to engage with and influence local governmental policies and other developmental choices.

Households that actively engage in the decision-making processes find themselves significantly less susceptible to the clutches of poverty, a notion corroborated by Balogun et al.'s research in 2011 Notably, more affluent households possess the means to secure affiliations with various associations and possess the luxury of dedicating more time to voluntary endeavors Substantial evidence underscores the positive correlation between membership in associations characterized by internal diversity and robust participation in their undertakings, and elevated ownership of assets (Grootaert, 1999) This association further translates into

2001 The economic advantage of wealthier households becomes especially evident in their enhanced capacity to access association memberships and to actively participate, as emphasized by Grootaert (1999).

In societies with high trust levels, individuals with low incomes are often perceived as less trustworthy (Sun et al., 2009) Trust is crucial in informal credit markets, which lack formal institutions for enforcing contracts Interpersonal trust fosters independent credit markets, providing access to credit for the poor and promoting economic activity This trust-based reliance reduces the need for formal intermediation in areas like property rights (Knack & Keefer, 1997) Income inequality has a negative correlation with generalized trust, and societies with high national inequality exhibit lower trust levels (Stephany, 2017) Trust plays a multifaceted role in poverty management by facilitating consumer credit, cash loans, and transactions with local vendors and medical providers.

Thus, the author's 5 research hypotheses are accepted and significant, summarized as follows:

H2: Factor Social trust of social capital has a significant effect on Poverty reduction.

H3: Factor Social network of social capital has a significant effect on Poverty reduction.

H4: Factor Civic participation of social capital has a significant effect on Poverty reduction.H5: Factor Social support of social capital has a significant effect on Poverty reduction.

SOLUTIONS TO REDUCE POVERTY IN VIETNAM

Objectives for poverty reduction in Vietnam

According to Decree of resolution proposed by the National Assembly in the 2016-2020 period, contributing to the achievement of the goal of reducing the poverty rate, general objectives included achieving the goal of sustainable poverty reduction, limiting re-poority; contributing to the realization of the goal of economic growth, ensuring social security, improving living standards, increasing people's incomes, especially in poor areas, creating favorable conditions for the poor and poor households to access facilitating basic social services (health, education, housing, water and sanitation, access to information).

In Vietnam, major trends are emerging with important implications for growth and poverty reduction.

According to the Government's proposal, the National Target Program for Sustainable Poverty Reduction in the 2021-2025 period aims to continue to solve problems that the National Target Program for Sustainable Poverty Reduction in the 2016-2020 period has not yet completed, such as: Number of poor districts and communes in coastal areas and islands that have not yet escaped from a particularly difficult situation; poverty reduction results are not really sustainable; the rate of falling back into poverty, the rate of poor households arising is still high; most of the poor, near-poor, and newly-escaped households live in rural areas with unsustainable livelihoods and incomes; lack of residential land, production land, lack of professional skills, low quality of human resources

In the National Target Program for Sustainable Poverty Reduction in the 2021-2025 period, we strive to limit re-poority and poverty generation The national target program for sustainable poverty reduction in the 2021-2025 period is implemented nationwide, with a focus on poor districts and communes with special difficulties in lowland,coastal and island areas The overall objective is to reduce poverty in a multi-dimensional, inclusive and sustainable manner, to limit the re-poority and poverty generation; support the poor and poor households to rise poverty line, and improve the quality of life; support poor districts and communes with special difficulties in the lowlands, coastal areas and islands to get rid of poverty and especially difficult situations “ In which, special attention is paid to investment in socio-economic infrastructure development; diversify livelihoods, develop production, provide vocational education and training, create jobs and good incomes for the poor, contribute to ensuring social security and realize the goals of economic growth and sustainable development - Mr Dao Ngoc Dung, Minister of Labor,Invalids and Social Affairs for the 2016-2021 period emphasized.

Solutions for state agencies to reduce poverty in Vietnam

In term of Neighborhood cohesion

State agencies possess a wealth of opportunities to instigate transformative change through community empowerment programs that center on nurturing trust, solidarity, and cooperation among residents These dynamic initiatives can encompass an array of activities, including thought-provoking community dialogues, immersive workshops, and comprehensive training sessions, all strategically designed to fortify social bonds and cultivate a collective sense of responsibility Through this participatory approach, state agencies can usher community members into the decision-making sphere, endowing them with the agency to champion poverty alleviation endeavors on a personal level By anchoring interventions within the context of each community, these agencies stand to cultivate solutions that are not just appropriate but also sustainable, seamlessly adapting to the distinctive local exigencies.

Resource mobilization emerges as another potent avenue for state agencies to foster positive change within neighborhoods Crafting platforms that effectively bridge residents with available resources, both internal and external to the community, can be instrumental Establishing community resource centers or digital hubs that furnish comprehensive information about government programs, game-changer Through enhancing the accessibility of these vital resources, state agencies empower individuals and households, effectively equipping them to transcend economic constraints and shatter the shackles of the poverty cycle.

Embracing data-driven strategies introduces yet another dimension to state agency efforts in combatting poverty Armed with the power of granular data, these agencies can adeptly pinpoint neighborhoods grappling with the most acute poverty straits Scrutinizing poverty metrics at the neighborhood level, this approach enables precise resource allocation, incisive intervention design, and accurate measurement of the tangible impacts stemming from poverty alleviation initiatives In tandem, this analytical approach to data empowers authorities to amass qualitative insights from residents themselves, unearthing the intricate web of their unique aspirations and pressing needs Armed with this enriched understanding, state agencies are primed to sculpt interventions that authentically address the multifaceted challenges specific to each neighborhood, further heightening the effectiveness and resonance of their endeavors

In conclusion, state agencies have a crucial role to play in leveraging neighborhood cohesion to reduce poverty in Vietnam By recognizing and strengthening the social capital that exists within communities, state agencies can empower individuals, foster collaboration, and promote sustainable development By implementing community empowerment programs, facilitating resource mobilization, fostering collaborative partnerships, investing in capacity building, and employing data-driven approaches, state agencies can create an enabling environment that supports poverty reduction efforts and enhances the overall well- being of communities across Vietnam.

In term of Social trust

State agencies can lead efforts to strengthen citizen trust in government through accountable governance This trust enables fair and equitable implementation of policies and programs When citizens trust government's ability to address poverty, they become more engaged in poverty reduction efforts, leading to effective partnerships between communities and agencies This alignment of efforts fosters collaboration and facilitates the achievement of shared goals.

The implementation of credit policies tailored for the impoverished demographic constitutes a cornerstone of fostering economic growth and self- sufficiency These policies target individuals with viable work capacity and capital requirements necessary to amplify production, augment income, and extricate themselves from the clutches of poverty Bolstering the overarching poverty reduction policy framework necessitates the fortification of conditional support mechanisms, encompassing facets such as preferential credit provisions, production assistance, and protracted benefit durations This comprehensive approach not only catalyzes motivation and determination within individuals to transcend their impoverished circumstances but also aligns with the broader goal of encouraging self-elevation from poverty.

Notably, the work of Sarker and Islam in 2014 underscores the correlation between trustworthiness and access to microcredit Therefore, policies emphasizing unconditional support are strategically redirected towards social assistance avenues Stratifying impoverished households into two distinct categories proves pivotal: those equipped with the potential to ascend from poverty by virtue of their labor capacity and those hindered by factors such as health constraints and age For the former group, state intervention centers on job creation and support mechanisms that foster conditions conducive to poverty alleviation Concurrently, those constrained by circumstances beyond their control, such as health issues or elderly isolation, transition into the domain of social assistance policies, shifting from the ambit of poverty reduction efforts The focus of poverty by limited access to livelihood resources.

In sum, the multifaceted strategies outlined encompass not only bolstering trust in government capacities but also extending credit lifelines, creating nuanced support networks, and precisely targeting the impoverished demographic This comprehensive approach underscores the role of state agencies as instrumental actors in orchestrating a transformative shift towards poverty reduction and sustainable development.In term of Social support

The strategic formulation of policies surrounding the extension of agriculture, forestry, and fishery, in conjunction with comprehensive business guidance and technology dissemination, emerges as a transformative pathway This multifaceted approach seeks to empower impoverished individuals with knowledge and skills, equipping them to adeptly orchestrate production plans, rationalize resource allocation, and harness cutting-edge techniques The overarching objective here is to bolster sustainable income generation through enhanced production, business practices, and product consumption strategies, thereby propelling them towards economic stability.

Within the policy framework aimed at propelling sustainable change, a spotlight is cast on supporting impoverished individuals in securing land and means of production This endeavor melds seamlessly with targeted vocational training initiatives, spotlighting a multi-faceted approach By extending support towards productive land acquisition and provisioning essential means of production, the state ensures that the impoverished gain a foundation for economic stability, a potent step toward breaking free from the shackles of poverty Concurrently, vocational training courses tailored for rapid skill acquisition stand as an invaluable conduit to job creation and income augmentation Empowering the less privileged with practical abilities not only facilitates employment-seeking endeavors but also emboldens them to embark on entrepreneurial ventures, effectively cultivating self-sufficiency. strategies This entails disentangling the intricacies between policies devised for employment support and those geared towards social assistance Instances of intertwining content, often skewed towards subsidies and handouts, inadvertently cultivate dependence on state aid among the impoverished To foster clarity and efficacy, a demarcation is essential between individuals who can independently engage in income-generating activities and those who necessitate social support due to health concerns or natural calamities.

Effecting this demarcation ensures that the two distinct segments of the impoverished population receive tailored assistance Those poised to overcome poverty via their own resourcefulness necessitate livelihood development assistance, which can bolster their labor-related income Simultaneously, social assistance policies assume the role of offering subsidies and support to individuals incapacitated by health conditions or disaster-induced adversities, fortifying the societal safety net.

In essence, the strategic recalibration of these policies not only champions self-sufficiency but also alleviates policy ambiguities, fostering precision and effectiveness in poverty reduction efforts.

In term of Social network

Fostering a robust economic ecosystem involves the active encouragement of enterprises, organizations, and individuals to spearhead vocational training initiatives, especially targeted at laborers from economically challenged households An essential element in this endeavor entails tailoring vocational training to align seamlessly with the local labor dynamics and the prevalent industry structure This strategic alignment is guided by a dual focus: the promotion of vocations capable of creating immediate job opportunities and occupations that stand in high demand, further positioning individuals to secure employment within the market and even on an international scale Notably, these

Vietnam's response to the COVID-19 pandemic has illuminated the need for more effective implementation of active labor market programs, akin to the approaches undertaken by neighboring countries in the region Valuable lessons can be gleaned from Malaysia's proactive endeavors, which encompass short courses on digital skills and other relevant competencies, augmented training funding norms channeled through the unemployment insurance system, and the provision of supplementary training allowances Emphasizing adaptable policies that facilitate upskilling and retraining is crucial to enhancing the workforce's resilience in the face of rapidly evolving domestic and global landscapes In this context, forging symbiotic links between vocational training institutions and businesses can enable the alignment of educational curricula with market demands and technological advancements.

State agencies can wield their influence to nurture knowledge exchange and mutual support mechanisms within social networks, thereby addressing poverty- related challenges head-on Initiatives such as support groups, mentorship programs, and community-based learning ventures can serve as conduits for individuals confronting analogous economic circumstances By forging these connections, shared experiences, insights, and pragmatic assistance can be exchanged, ultimately enriching the economic empowerment and poverty alleviation journey.

Identifying and bolstering entrepreneurial networks embedded within communities, particularly those steered by individuals who have triumphed over poverty themselves, stands as a transformative endeavor Through resource provisioning, mentorship, and market access, state agencies have the potential to nurture these networks,cultivating an environment conducive to collaboration, wisdom-sharing, and economic upliftment This multifaceted approach not only engenders sustainable income avenues but also serves as an inspiring model for