Dân trí tài chính của người nghèo tại khu vực nông thôn việt nam tt tiếng anh

1 INTRODUCTION Rationale Recently, comprehensive finance has been considered to be an important pillar of economic growth, financial promotion and sustainable poverty are highly vague This thesis will focus on studying factors that affect the FL of the poor in rural areas of Vietnam (including the reflection factors - the components of the FL), as well as the impact assessment of FL to income At the same time, the thesis gives policy implications for the FL development of the poor in rural reduction It becomes the priority focus of many countries around the world It can be seen that Financial Literacy (FL) has a positive impact on poverty areas in order to achieve the goal of sustainable economic development In order to accomplish this goal, the thesis will use a unified FL concept and adjust the reduction through increasing people's income - especially in developing countries or in transitioning economies The research of FL is mostly conducted in OECD countries or only countries such as the US and European Union countries From the measurement results, previous studies have brought out several major policy implications, which emphasize the establishment of saving habits for low-income people in the surveyed areas However, these studies mostly ignore economies in East Asia and Southeast Asia (except Japan and Singapore), which have a different cultural background from Western countries While (1) Confucianism and Buddhism heavily influence culture in East Asia and Southeast Asia, the relationships of each family member are reliable, and the spending decisions (showing a part of the Financial Literacy) depends heavily on the opinion of surrounding people; (2) Having the habit of saving more than consumption These completely different demographic characteristics measurement method to suit the research object Therefore, this will be an additional source of both theory and practice for the FL research branch in Vietnam and the world Research objectives and research missions Research subjects Finding the factors affect to FL of the poor in Vietnam rural area, then provide some implications to develop FL of this one Research missions To answer the above questions, the author's research objectives will focus on the following issues: • Research about the factors that can affect the FL of the poor in rural areas in Vietnam, including the reflection factors • Measuring the impact of FL level on the income of the poor in rural have led to two problems The first one is the failure to understand the questionnaires of East Asian and Southeast Asian people compared to Western Vietnam • Provide policy implications after comparing the components and factors countries, from which it is impossible to assess FL accurately, and also not determining the specific influencing factors The second is policy implications related to FL development cannot be implemented such as training on saving money in low-income areas - because the savings ratio of the people here (compared to income) is very high! In Vietnam, FL is mentioned in a small number of studies and often focuses on "financial training" rather than FL or assessing the impact of FL on the income of surveyed group However, it is evident that: in poor areas, even people have good financial knowledge but income is still low because the financial attitude and behavior of this group are not high The poor in rural areas have limited access to these services, and the behavior and use of these services affecting the FL in rural areas of Vietnam Research questions This research topic answers the following questions: • What are factors other than demographic factors affecting FL of the poor in rural areas of Vietnam? What effect does each of the financial components itself (including financial attitudes, financial behavior and financial knowledge) have on FL? • How does FL affect the income of the poor in rural Vietnam (through income criteria of individuals and households)? • What policy implications should be proposed to improve the FL of the poor in rural Vietnam? 4 Research objectives and research scope Research scope: focus on FL of the poor in rural Research scopes The study subjects are the financial literacy of the poor in rural areas of Vietnam These individuals must meet both of the time conditions: (1) have at CHAPTER 1: LITERATURE REVIEWON FINANCIAL LITERACY 1.1 The study of behavioral finance Because FL consists of three aspects: financial knowledge, financial attitude and financial behavior, which is relevant to behavioral finance studies - used to explain the behavior of investors (after having acquired financial knowledge) in least half of the current time living in the countryside; (2) in year, they must have at least months living in rural areas the market, especially the stock market as well as investments in other markets Behavioral financial studies have shown that when individuals make financial Research approach The author based on the original theories of economics, during the 1980s and 1990s, the Washington Concencus group of scholars developed a perspective on access to comprehensive financial and financial services, enabling individuals to invest or better use of services on the market, thereby helping to promote the development of a free economy The thesis will approach the research direction from the demand side of financial services Besides, this thesis also approaches in terms of sustainable livelihoods and human capital, because sustainable livelihoods are developed based on the theory of poverty reduction, and set people as the centre of Sustainable Development issue decisions often: Firstly, there is a tendency to appreciate the possibility of making up a loss rather than making a lot of profit Secondly, there is a tendency to divide decisions into separated "virtual accounts" in the brain instead of combining them into one unified whole and often handling these decisions independently, not paying attention to their correlation 1.2 The study of microfinance For the poverty research branch and measures to reduce poverty by providing financial support, this is an important research branch However, microfinance does not have a clear theoretical background It must rely on the following research branches: Initially, it is the research branch of knowledge training for people (including financial training to form financial knowledge) and demonstrates that this is the foundation of sustainable development The branch of human capital research believed that without human development, it is difficult to develop sustainable economy, because, without the human factor, it is impossible to use physical capital effectively For example, land or machines still have to be "operated" by humans The second research branch on which microfinance is based in the research branch on sustainable livelihoods The research group on sustainable livelihoods is developed based on research on poverty reduction In the studies of this group, most authors agree: the main points of sustainable livelihoods include: (1) individuals and households use current resources (human, financial, natural, physical and social elements) in response to changes in nature and markets in order to achieve sustainable livelihoods (2) People are the core elements of a sustainable livelihood framework Thus, in order to have a livelihood framework, the government must provide subsidized programs related to the establishment of a capacity to develop production and business activities for the poor in long-term This research group is the main foundation of microfinance (3) Since human beings are a central issue in livelihoods, poverty reduction must aim to provide individuals in the economy with a solid institution, environment, society and economy, which must include educational elements about finance and ways of living 1.3 The study of Financial Literacy Because of the inconsistency in the intrinsic of FL, the study of FL is usually not divided into schools, but it can be divided into small groups: (1) studying the factors that affect the FL; (2) the impact of FL on income 1.4 Research gaps Firstly, the intrinsic factors of FL are not consistent in the studies The gaps between the factors reflecting FL - that is, FL itself is composed of elements: Financial attitude, financial behavior and financial knowledge - and how these three reflect on FL Because of that, there has been a gap in the approach to assessing financial literacy Secondly, the analysis and presentation of assessing results of researches focus heavily on qualitative analysis Thirdly, Vietnam's unique characteristics affecting FL have not been mentioned in published studies CHAPTER 2: THEORETICAL FRAMEWORK OF FINANCIAL LITERACY OF THE POOR IN RURAL AREAS 2.1 Viewpoints on the poor in rural areas 2.1.1 Viewpoints on rural areas The rural area consists of communes of districts after adjustment of administrative boundaries to avoid the situation of individuals in urban areas In addition, individuals in rural areas in this thesis are understood as those who have permanent residence in rural areas and have a residence time in the locality of at least months/year This is to avoid the issues of individuals living far away for studying purpose (in the case of students participating in education at educational institutions); or whose income is not earned from rural areas Viewpoints on poverty: the poor will be the one whose income does not exceed VND 700,000 / person / month or VND 1,000,000 / person / month when lacking of the following criteria: health; education; house; clean water and sanitation; information Thus, based on the perspectives on financial literacy, poverty and rural areas, in this dissertation, the author conceives that FL is composed of three parts: financial knowledge, financial attitude major and financial behavior The Financial Literacy of the poor in rural areas is understood as the application of financial knowledge and financial attitudes to the financial behaviors of those who are in the absolute poverty line and have a period of residence in the rural region that ensures two conditions (1) at least half of the current living time are in the countryside and (2) in year, at least months is living in the countryside 2.2 Financial literacy of the poor in the rural area 2.2.1 Concept of Financial Literacy of the poor in rural area OECD (2013) defines FL as the combination of awareness, knowledge, skills, attitudes, and behaviors needed to make financial decisions and ultimately achieve personal “financial wealth” Combining from the above studies, the definition of FL is more developed in recent years Others define FL as a combination of an individual's perceptions, attitudes, and skills of individuals in financial matters In summary, FL will cover aspects: financial knowledge, financial attitude and financial behavior 2.2.2 Content of Financial Literacy of the poor in rural area Financial knowledge is the subject's understanding of the concepts of financial terminologies (interest rates, bonds, ) and the mode of operation of financial institutions (banks, credit institutions, ) Thus, financial knowledge expenditures and investments that waste capital and affect their income People and areas with high FL often have a broad understanding of financial issues and investment and savings methods ● Impact on worker’s productivity A high FL level increases the efficiency and productivity of the work It will will be a prerequisite to forming the financial behavior and attitude of the subject help employees better understand the benefits that the organization brings and improve their satisfaction Improving FL has a positive impact on people in their Financial attitude is the perspective of the subject on the happening of the surrounding financial situation, such as the government's assessment of the changing situation of the economy The determination of the subject's attitude to the financial and economic situation is a consequence of that person's financial knowledge, creating a premise for the financial behavior of that subject Financial behavior is understood as the subject's response to the volatility of the surrounding economy Through the subject's responses to the economy, we can identify the subject's sensitivity to the economy when there is a change 2.2.3 Methods of measuring financial literacy FILS method This method uses CFA (hypothesis testing method to test the assumption and hypothesis of the model structure by quality factors, thus showing the quality of the model adjustment of the expression variables according to the allocation of personal and professional lives High FL helps reduce social and psychological pressures and increase welfare for households The biggest advantage of improving FL is to reduce employees' financial mistakes and make them more responsible for managing their personal finances, which will contribute to increasing the households’ living standard 2.3.2 Impact on the overall economy ● Protect consumers from financial shortages that cause scams By increasing FL through skills, attitudes, behaviors and finances, it will contribute to enhancing the ability to protect consumer finance - especially those who are difficult to access to formal financial services (often are the poor in rural areas) ● Change the habit of keeping idle funds A population with better financial knowledge can use idle money as a specific latent variables) FSA method domestic investment to reduce its dependence on foreign capital and promote economic growth The microfinance research also showed that when the poor or FSA is a measurement of FL based on key issues: (1) Financial monitoring; (2) Ensure spending; (3) Planning ahead; (4) Select the product; (5) Stay up to date Questionnaire method This is the method of using questionnaires to measure FL Based on questions focusing on financial topics such as interest rates, the term of investment 2.3 The role of financial literacy 2.3.1 Impact on the objects of the economy ● Impact on the financial behavior of low and middle-income earners Previous studies have shown that people with poor FL often have inefficient residents in rural areas are trained in using financial products, they will be able to use their idle money better through the expansion of the saving ratio, thereby aiming to use the loan and towards poverty reduction 2.3.3 Impact of financial Literacy on income of the poor in rural area a Knowledge Knowledge is a fundamental part of human capital, so the impact of knowledge on income is clear, especially in the field of human capital research Studies agree that the number of years of schooling and work experience positively affect their income Therefore, financial knowledge, an aspect of FL, has a positive effect on the income of the subjects in the economy b Attitude Regarding the recent research branch on poverty reduction, especially on 10 sustainable livelihoods and microfinance, the attitude of individuals is believed to influence income For individuals who are cautious and knowledgeable enough information will spend less when income is high, the trend of savings increases and will use those savings when income decreases c Behaviors In the human capital research branch, people who have misguided investment behaviors as well as no financial behaviors would adversely affect income These behaviors and financial decisions directly affect income judging that the effect of gender on the FL score is unclear The study gave an average score of 47.87 for women, 49.02 for men Thus, the influence of gender on FL is still one factor that has not reached a consensus among the researches on FL in the world 2.4.6 Race and religion Previous studies have shown that race and religion are the factors that affect the FL However, the differences in measurement methods and measurement sample division make the results of these studies not consistent and clear 2.4 Factors affecting Financial Literacy 2.4.1 Education Results of previous studies have shown that education is a positive influence on an individual's FL The higher the education, the higher the rate of correctly answering financial questions 2.4.2 Income Income is one of the factors affecting an individual's FL score People with higher incomes often tend to have higher FL scores and vice versa However, the above studies also point out the fact that the FL scores and the proportion of people with accurate financial knowledge are still low, even in the highest income group This implies a need to enhance and improve FL not only among low-income people but also among middle and high-income groups 2.4.3 Employment The group of employed people, especially in terms of economics and finance, often has more accurate and satisfactory financial knowledge, which leads to higher FL scores than those without a job 2.4.4 Age Age is one of the factors affecting FL that is mentioned frequently in many research in the world Although it is not completely agreed, many studies concur with the view that: FL score will be highest in middle age and lower in younger or older ages 2.4.5 Gender Some viewpoints show that there is a difference in FL scores between women and men Specifically, women often have lower FL score than men in the majority of cases Moreover, women provide unspecified answers to financial problems However, others point out the opposite when it comes to 11 12 CHAPTER 3: RESEARCH METHODS AND RESULTS 3.1 Research Methods and Research Process This research combines both methods of qualitative research and quantitative research Based on the synthesis and development of theories from previous studies as well as FL theory, the author has qualitatively analyzed the factors ● Income Income is one of the factors influencing FL, which is mentioned in numerous researches - including in the human capital research branch, endogenous growth models and the theory of sustainable livelihoods Income has a positive influence on FL that affect FL and the influence of FL on the income of people in the rural regions The study combines quantitative methods and modelling survey data about individuals to obtain information on FL and income of the study subjects The set of quantitative FL measurement indicators will be built based on the questionnaire of OECD (2015), then adjusted to tailor Vietnam The author intensively interviewed experts in the field of financial literacy and personal finance to adjust the questionnaire to suit Vietnam This method would clarify further the qualitative relationships between the variables in the study and explain better the quantitative results achieved in this research 3.2 Research model and hypothesis 3.2.1 Financial Literacy measurement Financial literacy is a combination of financial knowledge, attitudes and behaviors that can make financial decisions and help an individual build a wellbeing financial Financial knowledge is understood as the necessary knowledge of theory and practice for an individual to make financial decisions effectively H1: FL is reflected in financial knowledge (reflective model) Financial attitude is an individual's thoughts or beliefs about the financial field and financial issues, which in turn influence his or her behaviors and decision making Financial attitude scores were also measured on Likert's scale, based on the positive financial attitudes of the participants in this study H2: FL is expressed through financial attitude (reflective model) Financial behavior is the subject's response to the volatility of the surrounding economy Through the subject's responses to the economy, the subject's sensitivity to the economy can be identified when there is a change H3: FL is expressed through financial behavior (reflective model) 2.6.2 Factors affecting Financial Literacy H4: Income has a positive effect on FL ● Education The scale includes levels of education: Incomplete high school, high school graduation, college, university, postgraduate Previous studies have suggested that education has a positive impact on FL H5: Education has a positive effect on FL • Employment People who have jobs will have higher FL scores than those who are unemployed Additionally, people who work in finance and state management tend to have higher scores than others H6: Jobs have an impact on FL • Age The opinion on the impact of age on FL is still inconsistent among researches Within the scope of the study, the author proposes the hypothesis H7: Age has an impact on FL • Gender Therefore, gender is a factor affecting FL, which has been discovered in a number of previous studies Within the scope of the study, the author proposes the hypothesis H8: Gender has an impact on FL • Race and Religion The race is one of the influencing factors on FL, but it is inconsistent Within the scope of the study, the author proposes H9: Race and religion have an impact on FL 3.2.3 Impact of Financial Literacy on income Studies on human capital and endogenous growth models mentioned that education, in general, has an impact on income H10: FL has an impact on income 13 14 3.3 Preliminary research 3.3.1 Preliminary qualitative research Qualitative research is determined by the in-depth interview with experts who have experience in the field of FL, personal finance, microfinance and electronic payment applications Part 2: Measurement of financial knowledge through a 5-level Likert scale with variables Information collected from this quantitative study will be analyzed on SPSS 22 and AMOS 20 software - Survey subjects: general fields of the Banking-Finance sector Preliminary qualitative research results Subjects selected to participate in the study are aged 18 and above, are poor households, and meet the time conditions: (1) the total time of living in Thai Demographic factors include gender, age, education, employment, income The questionnaire is required to mention the following issues: Firstly, the areas of works of individuals interviewed in rural areas should be divided into the following areas to ensure the comprehensiveness of the professions: (1) Field of Administrative Management (2) Industry (3) Agriculture (4) Technical (5) Scientific and Technological Research (6) Education (7) Health Sector (8) Banking and Finance (9) Others Secondly, education should be divided into (1) Below elementary (2) Primary/Secondary school (3) High school (4) Intermediate professional education and Vocational training (5) Colleges and Universities (6) Postgraduate Thirdly, with questions of financial knowledge, the author should revise to become a 5-level Likert scale, then retain the idea of the question Binh province must be at least ½ of the age number and (2) every year, the living time in the province must be at least months (unnecessary continuous) b Experimental quantitative research results From the rotation matrix from Exploratory Factor Analysis (EFA), the results show that the variables K6, K2, K7 and A3 are classified into the same factor and combined into factor However, according to the authors of previous studies, these variables have different content Therefore, in order to obtain a full scale, the author will conduct a second in-depth interview with experts to clarify this issue At the same time, after the process of experimental quantitative research, the survey subjects gave feedbacks on the wording of the questionnaire 3.4 Official research 3.4.1 Official qualitative research Fourthly, after testing the scale of the reflection factors (Financial Knowledge, Financial Attitude, Financial Behavior), FL will be calculated by a In-depth interview goal The scale and model were tested again through the results of preliminary averaging the scores of the observed variables having statistical significance in the model 3.3.2 Experimental quantitative research a Questionnaire Based on the overview research, research objectives, research model and preliminary in-depth interview results, the author drafted a questionnaire The questionnaire designed based on international studies was translated into Vietnamese, then adjusted to suit Vietnam - Questionnaire survey consists of main parts: Part 1: General information includes personal information such as gender, age, education, employment, years of experience, income and access to modern research, combined with the opinions of microfinance and financial experts Hence, it is to redefine the appropriateness of the variables, including definitions, hypotheses and impact trends of variables on latent variables in rural areas of Vietnam In-depth interviewees: In-depth interviews were conducted with 11 experts in the field of finance and education b In-depth interview results Firstly, although the objectives and scope of the study were not expressed, it needs to include the measurement of the financial literacy of the poor in rural areas of Vietnam, so they must still cover the same questions as those of the OECD (2013) as a theoretical basis for research Therefore, the survey still 15 16 needs some old questions, but when the model is tested, it is possible to remove this group (for variables that need to be removed from the model when experimental research is made) Secondly, when the small factors combine into one large factor, including K1, K3 and K5 (inflation, deposit interest rate and interest rate in case of CHAPTER 4: RESULTS OF THE RESEARCH MODEL 4.1 Current situation of financial literacy in rural areas of Vietnam The number of significant observations remaining is 512 observations Among these observations, women account for a much higher proportion than men, since at present, the issue of rural migration to urban areas makes women inflation), there will have an impact relationship by these three factors, which often come together and are among the money-saving factors of the rural poor live in rural areas more than men Therefore, the author's collection of 61.5% of the total votes is female in accordance with reality and previous studies About The group of factors K6, K2, K7 and A3 relate to the people's plans and ability to use money, so they are still acceptable The explanation is similar to A2 and A5; A1 and A4 The K4 factor (simple interest rate calculation) is excluded from the model because recently, most loans in the market are either based on compound interest or daily interest This is an appropriate issue for Vietnam 3.4.2 Official quantitative research Official research model the region, the North accounts for 52%; the South accounts for 38%, the rest is Central Regarding the age group of 26-40 years, accounting for 42% is the largest proportion, followed by the age group from 41-55 years old, accounting for 35.2% In terms of education, most of which are college and university account for 49.2%, then high school with 20.1% The main subjects of the survey are the poor living in rural areas, and most of them are working in the field of agriculture and industry, the income is mainly from 3-5 million a month (accounting for 30.7%), and 1- million a month (accounting for 23.4%), the rest is subject to income from million or less However, most of the interviewed groups are the main labor in the family, the number of dependents is from to people, so they are still the poor households 4.1.1 Current situation of financial literacy according to the reflection factors The majority of the observed variables of Financial attitude and Financial Behavior have values in the range [3.41; 4.2], which is quite large, showing that most people agree with the opinions from the scale However, many surveyed a Research sample • Method of survey The method of survey used by the author is to distribute the questionnaire directly to each survey object After distributing 600 questionnaires, the author received 512 observations matching the study people have a neutral opinion about financial attitude, "I have to spend most of the money I have on buying goods and food for the family." (average of 3.24) showing the buying goods attitude of residents About the Financial knowledge observed variable, all observed variables are also valid in the range [3.65; 4.1] However, the difference between the average score among the answers is quite large, this can reflect respondents' uncertainties about financial literacy questions Especially in the question about knowledge of K1 inflation definition, there were 102/152 respondents answered: "I am not sure" The access to financial knowledge such as inflation, interest rates,… is quite limited 17 18 4.1.2 Current situation of factors affecting financial literacy The FL score for women is 0.0506 points higher than for men This shows that there is no obvious difference between men and women when measuring FL The group with the highest average FL score was between 56-70 years old and 41-55 years old, with 4,069 and 3,871 points, respectively The group aged 4.2.2 Confirmatory Factor Analysis (CFA) 18-25 years has the lowest FL score with 2,754 points 4.2 Assess the reliability of the scale of reflection factors • CFA model Level measures FL The results of CFA analysis of the criteria to measure the suitability of the model show that Chi-square / df =