FACTORS DETERMINING ACCESS TO CREDIT BY ORANGE FARMS OWNERS IN TUYENQUANG PROVINCE, VIETNAM

While Vietnam started as a poor agricultural country, her economy has improved in recent years. Economic development has changed the country significantly in all aspects, especially agriculture, rural areas and peasant living standards. Orange and farming models have been encouraged in many localities in Vietnam for a higher income and living standards of the farmers who account for a large proportion of Vietnamese labor structure. Access to credit is one of the essential keys to decrease poverty, promote production, and smoothly increase consumption. However, access to credit by the farm owners has currently got constraints. This paper was identified factors determining access to credit by orange farm’s owners in TuyenQuang Province, Vietnam. The study randomly chose 107 farm owners in the study site to interview. The primary data were collected from April to June 2019 by using a structured questionnaire. The Probit model regression was applied to identify the factors. The independent variables were age of farm owners, education level, family size, family labor, farming experience, farm size, social capital, and farm income. The results indicated that the age of farm owners, education level, family size, orange cultivation experience, farm size, and social capital had significant influence on the access to credit of farm owners. Cooperative and intensive extension systems are two recommendations for local authorities and plan makers to improve orange farm owners’ access to credit.