Volume 11, Issue 3 (March 2024), Pages: 220-225

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 Original Research Paper

Loan accessibility for social housing in Vietnam's Mekong Delta: An empirical study

 Author(s): 

 Ha Hong Nguyen *

 Affiliation(s):

 School Economics and Law, Tra Vinh University, Tra Vinh, Vietnam

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 * Corresponding Author. 

  Corresponding author's ORCID profile: https://orcid.org/0000-0001-7404-0599

 Digital Object Identifier (DOI)

 https://doi.org/10.21833/ijaas.2024.03.021

 Abstract

The purpose of this study is to examine how easily low-income workers can get loans for social housing projects under a Vietnamese government policy. This policy, outlined in Decision 388/QD-TTg by the Prime Minister on April 3, 2023, aims to build at least 1 million apartments for low-income individuals and industrial park workers from 2021 to 2030. The study focuses on four branches of the Vietnam Bank for Social Policy (VBSP) in the Mekong Delta region: Tra Vinh, Vinh Long, Ben Tre, and Soc Trang provinces. The research involved surveying 280 workers who applied for loans at these banks between May 2003 and September 2023. Half of these applicants met the loan criteria, while the other half did not. Using a Binary logistic regression model, the study identified several factors that influence the likelihood of obtaining a social housing loan from VBSP. These factors include the applicant's age, education level, number of dependents, marital status, total income, equity ratio, and the value of collateral. Among these, the total income, value of collateral, and equity ratio were found to have the most significant effect on loan accessibility. Based on the findings, the authors suggest policy recommendations to make it easier for low-income workers to access loans for social housing in the future, enhancing the effectiveness of the VBSP's lending program in the Mekong Delta.

 © 2024 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords

 Social housing loans, Low-income workers, Vietnam bank for social policy, Loan accessibility, Binary logistic regression

 Article history

 Received 7 October 2023, Received in revised form 10 February 2024, Accepted 9 March 2024

 Acknowledgment 

This research is funded by Tra Vinh University, Vietnam, and the author sincerely thanks the support and assistance of the survey team of the Faculty of Economics, Tra Vinh University, and 280 employees who came to apply for loans at 4 Vietnam Bank for Social Policy Banks in the Mekong Delta, Vietnam that have enthusiastically helped, provided survey data and information. The author sincerely thanks the enthusiastic support of these research groups.

 Compliance with ethical standards

 Conflict of interest: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

 Citation:

 Nguyen HH (2024). Loan accessibility for social housing in Vietnam's Mekong Delta: An empirical study. International Journal of Advanced and Applied Sciences, 11(3): 220-225

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