Impact of geographic location on the role of financial inclusion in poverty reduction in Viet Nam

MAI TRUONG KHANH LINH

Email: [email protected]

NGO THI DIEM PHUC (corresponding author)

Email: [email protected]

KIM HYE JIN

Email: [email protected]

LE MINH HANH

Email: [email protected]

NGUYEN HOANG THU THAO

Email: [email protected]

Foreign Trade University

Abstract

Drawing on data from the 2018-2020 Vietnam Household Living Standard Survey (VHLSS), the research employs Ordinary Least Squares (OLS) regression to ensure a robust analytical framework. Empirical results demonstrate that financial inclusion (FI) exerts a significant and positive influence on household welfare. The findings also reveal that geographic location acts as a key moderator, which claims that the relationship between FI and welfare is significantly shaped by the rural-urban divide. Besides, this paper finds that socioeconomic factors play an important role in household living standards. As a result, the research provides evidence that expanding financial access is an effective mechanism for elevating household welfare. Finally, a discussion of policy implications is presented.

Keywords: Financial inclusion, poverty reduction, rural, urban, Viet Nam

(This article was published in the Vietnam Economic&Financial Review, Vol 2, Issue 2, April 2026)

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