The cycle of debt looms large over numerous low-income Vietnamese households, propelled by stagnant wages, restricted access to conventional financial services, and inadequate financial literacy. Financial barriers Financial barriers are tightening their grip on low-income individuals in Vietnam, intensifying an already challenging economic landscape. A recent report by Home Credit and Decision Lab underscores this grim reality, revealing that stagnant wages are failing to match the surge in living costs, leaving families struggling to cover even basic necessities. The December 2023 survey, which encompassed 1,200 Vietnamese respondents, paints a troubling picture: one-third experienced a decrease in income, while another third saw no improvement. These circumstances disproportionately affect low-income earners, who lack the financial cushion needed to weather unexpected setbacks. Alarmingly, nearly half of the respondents admit to living paycheck to paycheck, with scant savings to buffer against emergencies. Even minor crises, such as medical bills, can plunge these vulnerable families into financial turmoil. Adding to the challenge, traditional bank loans demand extensive documentation to verify income and assets. Meeting stringent creditworthiness criteria and enduring lengthy approval processes can be daunting for borrowers. This is especially true in Vietnam and similar developing economies, where income validation requirements often exclude those in […]