This study investigated the determinants of accessibility to formal credit and its effects on living standards from 2010
to 2012 based on dataset of Vietnam Households Living Standards Survey (VHLSS) from the General Statistics
Office of Vietnam and support of Eview 7 program. It is evident that average of education level, land area per capita,
owned residential area affect is key factors of accessing to credit; meanwhile, average of education level affects the
probability to require and amount of credit. Interestingly, we find that poor recognize by local and rate of non-farm
income is positive factor of accessibility on formal credit; in addition, interest rate has statistically significant,
implying has impact on loan amount. In otherwise, by using DID (Note 2) approach and OLS (Note 3) model for
analyzing panel dataset in 2010, 2012; we find that have only impact of accessing to loan on education expense in
short-term. Next, the results also indicate that enhance education level and rate of non-agriculture income lead to
achievement of living standards.