ACCESS TO CREDIT OF ANIMAL PRODUCTION HOUSEHOLDS: A STUDY IN HAI DUONG PROVINCE, VIETNAM

Recently, the credit supply from the formal credit sector to the rural area has increased considerably. However, the credit supply to agriculture is still far from the actual credit need and mismatching with the economic and social contribution of agriculture sector to the rural area. Using data from the household survey in Hai Duong, finding of this paper shows that the credit supply from the formal sector did not meet the credit need of animal production households. In the borrower’s side, dependency ratio, area of crop land, area of fish pond and number of pigs were main factors influencing their credit accessibility from the formal sector. In addition, age, educational level of household head and size of fish pond were key factors affecting the loan amount approved by the banks. The weaknesses in the rural credit supply from the formal sector also resulted in some constraints of animal producer’s credit accessibility.