Determinants of Household Savings in the Mekong River Delta

Abstract

In order to overview of saving behavior and factors that promote saving behavior of households in rural households in the Mekong Delta, the article uses data from 1,279 households using Tobit regression. The results show that the average saving level of each household accounts for 15% of household’s total income. Additionally, the results also show that there are many factors that have effects on saving decision of households in the Mekong Delta with different levels. Specifically, there are three factors that have positive influences on the savings rate, including household income, house value and distance from their place of residence and credit institutions. Conversely, three factors have negative effects on the savings rate, including the labor ratio, the total area of production land, and ability of access to credit.