Household Savings in Vietnam: Insights from a 2006 Rural Household Survey

Newman, Carol and Tarp, Finn and Van den Broeck, Katleen and Quang, Chu Tien and Khai, Luu Duc (2008): Household Savings in Vietnam: Insights from a 2006 Rural Household Survey. Published in: Vietnam Economic Management Review , Vol. 3,

Abstract

The aim of this paper is to inform the reader about the rural households' saving situation in Vietnam and the determinants of household saving with special interest in the possible effects of network savings behavior on household savings behavior. In Vietnam households hold capital through informal means. This means prevents it in many cases from being used effectively for investment purposes. Disseminating information about the merits of institutional saving could potentially stimulate formal household savings making. We discuss the extent to which social networks may act as an effective information transmission mechanism, and also argue that the nature and quality of the information disseminated must be carefully considered to expect the desired policy response.

• Item Type: MPRA Paper
• Language: English
• Keywords: Vietnam, rural household savings, social networks
• Subjects: D - Microeconomics > D9 - Intertemporal Choice > D91 - Intertemporal Household Choice ; Life Cycle Models and Saving; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O12 - Microeconomic Analyses of Economic Development; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance

References

Kraay, A. (2000) “Household Saving in China”, The World Bank Economic Review, vol. 14 (3), pp. 545-70.

Ministry of Planning and Investment. (2006) ‘The Five-Year Socio-Economic Development Plan 2006-2010’, Hanoi, Vietnam.

Newman, C., F. Tarp and K. Van den Broeck (2007) “Network Effects and Household Savings: Evidence from Vietnam”, November, 2007, mimeo.

Sepehri, A. and A.H. Akram-Lodhi. (2005) “Transition, Savings and Growth in Vietnam: A Three-Gap Analysis” Journal of International Development, 17, pp. 553-574.

Vietnam Access to Resources Household Survey (2007). Available at: http://www.ciem.org.vn/home/en/upload/info/attach/1194421575609- Characteristics_of_the_Vietnamese_Rural_Economy.pdf