Chapter 3 How the household credit and the price fluctuation effect on
B. The process of gathering data
The process of collecting data is done by these surveyed people are answered their ideas directly throughout the internet or the questionnaire was designed by the surveyed sheet. The first way offers the high convenience because all the questions must be answered and then the surveyed results have just been accepted; and so the surveyed results have a valid vote. While the second gathering data is not the high bind nature, if the surveyed people did not answer any questions and then that vote was not valid.
Analysis and Statistical Treatment Table 3.1: The list of the surveyed areas at Ho Chi Minh City
Ward District City Geographical
position
Total of household
Total population (person)
Economic structure (%)
The poor household of the first 2011 (poor living standard)
Ward 2 District 3 HCMC Old urban area 3.724 188.945 Industry:35
Trade service:25
105
Ward 17 Go Vap HCMC Old urban area 6.629 548.145 Industry: 75 Trade.service:25
378
Ward Hiep Thanh
District 12
HCMC Peri-urban area 4.763 327.083 Industry: 65,5 Trade.service:31 Agriculture: 3,5
473
Ward Binh Chanh
Binh Chanh
HCMC Rural,peri- urban,effect of industrialization
2.892 167.291 Agriculture: 70 Trade-service:30
671
According to table.1,in the total of the surveyed households, the poor
households with per capita income of less than 4 millions VNĐ per year is the highest proportion of 43.5% (according to 2004 surveyed results of the city and then this rate is about 60%), the income with per capita from 4 to 5 millions VND per year gets 37.1% (the correlative rate of the city total is 27.8%) and the income with per capita from 5 to 6 millions VND gets 19.4% (the rate of total is 11.7%). With two different surveyed period of times are 2005 compared to 2004 may showed that the selected sample of the investigation in this study are completely typical for the poor
households of Ho Chi Minh City. This also indicated that a large proportion of the poor (estimated at over 50%) are living in the poverty situations, the low income level per capita (less than 4 millions VND) and is very far with the poor level under 6
millions VND. Their life was very difficult, almost the poor income is just enough for food needs every day.
At the surveyed districts, Binh Chanh District is where has the number of the poorest with income per capita less than 4 millions VND per year achieves 33.5%
total of the poor households under 4 millions VND with all the surveyed districts and it is next to District 12.This is a peri-burban district of Ho Chi Minh City and in the process of urbanization.Even people lived long life which has an area of agricultural land and the crop is not high, the majority of the subsistence.
Due to bad land conditions, a few palaces has the high salinity. Besides, there is a part of population to transfer other occupations such as: workers,bricklayer, small business...the income is better agriculture but that also bring about the significant improvement. This show that , despite of the long-term life at home (over 98% of people with the permanent residence), the stable housing condition but the poors still do not have in place as well as the ability to accumulate out of poverty, especially the poor is in peri-urban areas with the agricultural industry.
The surveyed results showed that the poor often lives a cluster of people in the poor quarter with the poor neighbors.This makes them limit in the expansion of social relations to overcome the poverty.
Table 3.2: Purpose of Loans of the poor household
Total Purpose of Loans
Production Percent
(%)
Non-production Percent (%)
Production 11,25 Debt payment 3,25
Smaller business
12,68 Consumption(food) 31,34
Health care 17,22
Education(schooling fee 17,68
Insurance 0,25
House repairs 4,12
Others finance services 2,05
100,00 23,93% 76,07%
N=452 N=108 N=344
Source: the surveyed area of author. The sample size of 452 people
At the surveyed area; According to the statistical data is very significant (table.2). 452 the poor are interviewed, only 23, 93 % of total loans is used for small production and businesses .On the other hand, the main purpose of the loans is taken by the poor households in the peri-urban areas is for non-production (76,
07%).Consumption expenditure such as food, schooling fees and healthcare accounts for about 66, 24% of total loans.
Price movement in 2011 at surveyed areas
At the surveyed areas, almost the population groups are interested in the price movement of the types of food such as :meat, rice, other foods and the fuel such as :electricity, petrol, gas (table.3) in which two types of goods such as:meat,fish, rice"
and "power" always spend everyday.The groups often have to travel a lot and work away from home (freelance-labor,officials and workers)are very interested in the price of "petrol"; Otherwise the price of "petrol" is less the effect on the objects of pension
Table 3.3: The commodity summary of the price movement effects on population groups
The scale of priority ranking food
N=1652 Native poor group
Migrant worker group
Native freelance- worker group
Pension group
Civil servant group with an average income
1 535 Meat ,fish Meat ,fish Gas Rice Petrol
2 335 Rice Other food Electric Meat ,fish Meat ,fish
3 308 Health care Guest-house Petrol Electric Electric
4 276 Electric Rice Meat ,fish Gas Gas
5 198 Schooling fee Electric Schooling fee Building
material
Eating out service
Total N=1652
Source: the surveyed area of author. The sample size of 1652 people
A few the differences between the population groups and the price movement as follow:
The groups of the poor, the low and fixed incomer (native the poor household, migrant workers, and retirement) is more interested in the price movement of foods.
Especially the poors are more worried about health care and heath services because they are not in good health or sickness.
The group of workers with an average or more income is raised with the correlative price movement (freelance-labor and official staff group), beside the price movement of meat, fish are particularly interested in the price fluctuation of gas, electricity and petrol.
The group of immigrant workers: the high-cost of accommodation is especially worried about migrant workers; the different of native workers are not interested in the housing cost.
Table 3.4 : Total of consumption expenditure of the population groups
The scale of priority ranking food
N=1652 Percent (%)
Native poor group
Migrant worker group
Native freelance- worker group
Pension group
Civil servant group with an average income
1 1252 75,79 Buy cheaper
food
Reduce power
Reduce power Reduce power
Reduce shopping individual
2 109 6,6 Reduce
power
Reduce shopping individual
Reduce the gas usage
Reduce shopping individual
Reduce power
3 122 7,38 Reduce the
food
Reduce money to send home
Reduce shopping individual
Reduce the food
Change traveling to reduce costs
4 114 6,9 Reduce the
health care service cost
Work overtime, extra shifts
Buy cheaper food
Reduce monthly savings
Cook at home, reduce eating out
5 55 3,33 Reduce the
social relation costs
Reduce monthly savings
Cook at home, reduce eating out
Reduce the gas usage
Reduce the food
Total N=1652
The price fluctuation has made the population groups reduce the electricity usage, individual shopping, feed intake, gas...in which reduces electricity usage and individual shopping is the highest priority. On the other hand, cooking at home, eating out reduction with the poor households is applied. Women in the poor households usually get up early to cook breakfast, some freelance-workers come back home with the family meal at noon
Overall, consumption expenditrue about food;almost the poor households and the low income groups often go to the market by saying to determine how much sum of money to buy,now?That reason is amount of daily shopping everyday in which
must be fixed monthly when the price movement has made adverse large effects ;So the poor households should buy less food, or cut it down.
What things effect on the life and consumption expenditure Of the population groups
The price movement effects on nutritional and healthy such as: the poor household group reduces food and health cost. If the poor continue to reduce the food in the long times, that will be able to influence health and nutrition of children
The price movement effects on access to basic services of the poor households:
Health care: The poor households have reduced health care costs by limiting to see the doctor, and increasing self-services.
Education: educational expenditure for children of the poor households in Binh Chanh and Hiep Thanh Ward, District 12 and Binh Chanh has increased since May /2011 .Particularly in Ward 17 Go Vap do not see any reflection of the rising of the school fee, so HCM City has asked the schools do not increase the schooling fee.
About the schooling fee, at the surveyed areas showed that the situation of having private tuition has increased more about 20-30% compared to 2010.At present, a fewer the poor households said that if the schooling fee continue to rise ,then the poor households will not stop having private tuition for their children.
The price movement has the risk of being lacked the capital of the poor household such as many poor households have reduced the costs of social relation while other groups are nearly very little the choice. This reduces the risk of the poor relations and the household’s social capital may be more limited.
The price movement has effect on consumption expenditure of immigrants:
Compared to the native poor, immigrants are less difficult than from the price
movement because migrant workers are young , less sickness and especially their work have better the income than the poor. However, immigrants can bear more difficult because it takes an amount of money to cover the life such as: guest-house, electric, water and the cost of traveling in the City.
In the surveyed and investigation areas, the poor group, the low income and fixed group (the poor household, workers, retired group), the group of worker with an average and fairly income(free-lance labor group and the group of workers and employees) they are most interested in the food groups (meat, rice, other foods) and fuel (electricity , petrol, gas).
Especially the poor, they are worried about medicine expenditure and health care services. Besides, the high cost of accommodation is the most concern of
immigrants.The price movement has reduced the purchasing power, the quality of life, the increasing of the poor problems and the low-income and fixed people. On the other hand, some the poor households can stop their children school, the borrowing increase covers daily expenditures...almost that did not happen in all social groups.
The credit activities for the poor in the surveyed areas have not seen evil influences. Effecting on gender relations are mainly in the division of labor in the households (women have to worry about the household meals, some women of the poor households are harder to work extra in order to earn the income more in the price movement).The change of their works have not seen the impact of the price
movement (the difference with the impact of financial crisis in 2009).The main concern of the poor is now being interviewed as a new jobs with the better income to confront with the price movement.
Chapter 4