Financial capacity for sustainable poverty reduction of Muong households in Thanh Hoa, Vietnam

Abstract

Abstract: This study examines the capacity of Muong ethnic households in Thanh Hoa province to access and effectively utilize financial capital and identifies the factors that influence this capacity in the context of sustainable poverty reduction. Employing a mixed-methods approach, findings from a survey of 1200 households and in-depth interviews reveal a key paradox: while access to policy-based capital is relatively favorable, the ability of poor families to use this capital effectively is severely limited. Key barriers hindering effective capital utilization include low educational attainment, a lack of production skills, and psychological obstacles. Conversely, households that have escaped poverty demonstrate markedly better capital utilization. Based on these findings, the study proposes integrated policy solutions that emphasize coupling credit support with investments in human capital and technical assistance to foster sustainable poverty reduction.