The impact of the financial inclusion on multidimensional poverty at household level in Vietnam in 2020

Abstract

The relationship between financial inclusion and poverty is of interest to governments and
researchers worldwide, including Vietnam. The research focuses on assessing the current status of
financial inclusion at the household level in Vietnam in 2020 and its impact on multidimensional poverty.
The study employs principal component analysis and a logistic regression model. Based on data from
the Household Living Standards Survey, the study shows that the assessment of the financial inclusion
differs between ecological regions, with households living in the Red River Delta and Southeast regions
having the highest level of financial inclusion. An increase in financial inclusion at the household level has
a statistically significant impact on reducing multidimensional poverty (relative risk reduces by 0.5 times).
Based on research results, sustainable multidimensional poverty reduction policies can be implemented in
combination with comprehensive financial inclusion development strategies. Furthermore, factors such as
region, education, and occupation of the household head need to be considered when addressing poverty
reduction and promoting financial inclusion