Factors Affecting Credit Access of Individual Business Households in ho chi Minh City, Vietnam





Access, Credit, Loan, Process, Individual, Business, Households, Vietnam


Purpose: The study studies the factors affecting access to credit of individual business households in Ho Chi Minh City (HCMC), Vietnam. The authors proposed policy implications based on research results that improve access to credit for individual business households.


Theoretical framework: Access to formal credit can be understood in many ways. This article considers that access to proper credit is the ability of a customer to use the capital of a traditional credit institution based on meeting financial obligations - emphasizing the ability to repay both principal and interest.


Design/methodology/approach: The authors chose a mixed method to conduct the study. This is a suitable research method to answer the research questions raised. Mixed methods include both qualitative and quantitative methods. However, this combination is the implementation of interlacing, replacing the two approaches to solve each problem, the research design's specific goal. The authors analyzed Data from May 2022 to December 2022 in HCMC based on the EFA and CFA, using the structural equation model analysis (SEM) method with SPSS 20.0 software and Amos.


Findings: The article's findings showed five factors affecting access to credit of individual business households in HCMC, Vietnam. In particular, the loan procedure factor substantially impacts the five factors affecting credit access.


Research, Practical & Social implications: The study has provided empirical evidence on the factors affecting formal credit access by a linear structural model and provides evidence that factors such as the loan procedure affect traditional credit affecting access to credit.


Originality/value: The authors give some policy implications for state management agencies, credit institutions, customers, and mass organizations, such as increasing the role of local Government and increasing the ability to use banks, E-commerce, design new loan products to help individual business households access more formal capital, and at the same time, reduce black credit.


Download data is not yet available.


Abafita, J., Atkinson, J., & Kim, C. S. (2016). Smallholder commercialization in Ethiopia: Market orientation and participation. International Food Research Journal, 23(4), 1797-1807.

Aderaw, G., & Singh, M. (2016). Development of financial sector in Ethiopia: A literature review. Journal of Economics and Sustainable Development, 7(7), 9-20.

Al-Obaidi, M. B. M., & Almashhadani, A. N. (2022). Assessment of the financial sustainability of external debt in Iraq: an econometric analysis. International Journal of Professional Business Review, 7(5), 1-24.

Amjad, S., & Hasnu, S. (2007). Smallholders' access to rural credit: Evidence from Pakistan. The Lahore Journal of Economics, 12(2), 1-25.

Anang, B., Sipiläinen, T., Bäckman, S., & Kola, J. (2015). Factors influencing smallholder farmers' access to agricultural microcredit in Northern Ghana. Africa Journal of Agricultural Research, 10(24), 2460-2469.

Assifaw, L., & Adeba, G. (2016). Analysis of factors affecting smallholder farmers' access to formal credit in Jibat district, West Showa Zone, Ethiopia. International Journal of African and Asian Studies, 25(1), 43-53.

Baiyegunhi, L. S., & Fraser, G. G. (2014). Smallholder farmers' access to credit in the anethole district municipality, Eastern Cape province, South Africa. Journal of Agriculture and Rural Development in the Tropics and Subtropics, 115(2), 79-89.

Chien, Y. W., & DeVaney, S. (2001). The Effects of credit attitude and socioeconomic factors on credit card and installment debt. The Journal of Consumer Affairs, 35(1), 162-179.

Dube, L., Mariga, T., & Mrema, M. (2015). Determinants of access to formal credit by smallholder tobacco farmers in Makoni district, Zimbabwe. Greener Journal of Agricultural Sciences, 5(1), 034-042.

Gbigbi, T. M. (2017). Are there roadblocks to accessing micro-credit from selected microfinance banks in delta state, Nigeria? Implications for small-scale farmers' sustainability. Journal of Food Industry, 1(1), 1-16.

Hair, J., Anderson, R., Tatham, R., & Black, W. (2021). Multivariate Data Analysis with Readings, U.S.: Prentice-Hall: Upper Saddle River, NJ, USA.

Kim, H., & DeVaney, S. (2001). The determinants of outstanding balances among credit card revolvers. Financial Counseling and Planning, 12(2), 10-12.

Kiplimo, J. C., Ngenoh, E., Koech, W., & Bett, J. K. (2015). Determinants of access to credit financial services by smallholder farmers in Kenya. Journal of Development and Agricultural Economics, 7(9), 303-313.

Lee, J. (2006). Family firm performance: Further evidence. Family Business Review, 19(2), 103-114.

Lee, Park, Y. K., Chung, N., & Blakeney, A. (2012). A unified perspective on the factors influencing usage intention toward mobile financial services. Journal of Business Research, 65(11), 1590-1599.

Malhotra, P., & Singh, B. (2009). The impact of internet banking on bank performance and risk: The Indian experience. Eurasian Journal of Business Economics, 2(4), 43-62.

Masaood, M., & Keshav, L. (2020). Factors affecting farmers' access to formal and informal credit: Evidence from rural Afghanistan. Journal of Sustainability, 12(1268), 1-16.

Michael, A., Giroh, Y. D., Polycarp, M., & Ashindo, Z. E. (2018). Analysis of rural farm households' access to formal agricultural credit in Yola south local government area, Adamawa State, Nigeria. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 66(4), 947-954.

Muhongayirea, W., Hitayezub, P., Mbatiac, O. L., & Wangiad, S. M. (2013). Determinants of farmers' participation in formal credit markets in rural Rwanda. Journal of Agricultural Science, 4(2), 87-94.

Njeru, T. N., Mano, Y., & Otsuka, K. (2016). Role of access to credit in rice production in Sub-Saharan Africa: The case of Mwea irrigation scheme in Kenya. Journal of African Economies, 25(2), 300-321.

Nouman, M., Siddiqi, M. F., Asim, S. M., & Hussain, Z. (2013). Impact of socioeconomic characteristics of farmers on access to agricultural credit. Sarhad Journal Agriculture, 29(3), 469-475.

Ojiako, I. A., Idowu, A. O., & Ogbuk wa, B. C. (2014). Determinants of loan repayment behavior of smallholder cooperative farmers in Yewa North local government area of Ogun state, Nigeria: An application of Tobit model. Journal of Economics and Sustainable Development, 5(16), 144-153.

Okurut, F. N., & Bategeka, L. (2006). The impact of microfinance on the welfare of the poor in Uganda. Journal of Social and Economic Policy, 3(1), 59-74.

Samson, A., & Obademi, O. (2018). The determinants and impact of access to agricultural credit on productivity by farmers in Nigeria; Evidence from Oyo state, Nigeria. Advances in Social Sciences Research Journal, 5(3), 252-265.

Sattar, T. (2012). Sociological analysis of constraining factors of development in the agriculture sector of Pakistan. Journal of Economics and Sustainable Development, 3(8), 8-24.

Sebatta, C., Wamulume, M., & Mwansakilwa, C. (2014). Determinants of smallholder farmers' access to agricultural finance in Zambia. Journal of Agricultural Science, 6(11), 63-73.

Shahidur. R. K. (2005). Microfinance and poverty: Evidence using panel data from Bangladesh. The World Bank Economic Review, 19(2), 263-286.

Yusup, D. K., Sobana, D. H., & Yulandri, E. (2022). The development model of mini bank and business clinics laboratory at PTKIN. International Journal of Professional Business Review, 7(4), 1-16.




How to Cite

Nguyen, T. N., & Huy, C. T. (2023). Factors Affecting Credit Access of Individual Business Households in ho chi Minh City, Vietnam. International Journal of Professional Business Review, 8(4), e01910. https://doi.org/10.26668/businessreview/2023.v8i4.1910