Determinants of financial inclusion - the Vietnamese households’ perspective

Using the Vietnam Household Living Standard Survey (VHLSS) datasets in 2014, 2016, and 2018, this study examines financial inclusion's key determinants from the perspective of Vietnamese households. This study investigates the effects of the determinants on each level of financial inclusion utilizing an ordered logit model. The empirical results reveal that total income per household, relative income index, and the distance of the household from the nearest financial hub are crucial factors that drive the financial inclusion level. While the total income per household plays a positive role in enhancing financial inclusion, relative income seems to have an adverse effect on the degree of financial inclusion of individuals. Besides, distance to the nearest public bank branch is also a challenge to overcome in achieving the financial inclusion goals in Vietnam in the future. Relevance