A Key Success From Educating Wealth Management to Reduce Household Debt in Vietnam

Abstract

Rising household debt poses a significant threat to Vietnam's financial stability and citizen well-being. This dissertation identifies educating wealth management as a crucial micro-level solution for mitigating household debt risks. Conceptualizing wealth management education as building foundational knowledge, skills, and confidence for effective personal financial management, with financial literacy at its core, this research examines how enhancing wealth management capabilities contributes to sustainable debt reduction among young adults (18-35 years old) in Vietnam. The study employs a mixed-methods approach, featuring a quantitative survey of 722 young adults in Vietnam's major urban centers and in-depth interviews with banking and financial education experts. Grounded in an integrated theoretical framework combining the Theory of Reasoned Action, Theory of Planned Behavior, and Life-Cycle Hypothesis, the research reveals that wealth management education, particularly the development of subjective financial literacy (financial self-efficacy), is the strongest predictor of positive financial behavior (β = 0.659, p < .001). The model explains 58.4% of the variance in financial behavior, underscoring the power of education. A critical insight is that knowledge alone does not directly shape debt attitudes; instead, practical, confidence-building wealth management education is essential to translate knowledge into prudent financial actions. Qualitative evidence confirms that the current lack of a formal, national wealth management education program is a systemic gap, correlating with rising non-performing loans among young borrowers. The study concludes that the key success for reducing household debt in Vietnam lies in institutionalizing comprehensive wealth management education, with a dedicated focus on strengthening financial literacy. This requires a synergistic strategy involving the state, educational institutions, and the banking sector to equip individuals with the skills not just to borrow, but to build and manage wealth responsibly.

Keywords: Wealth Management Education, Household Debt, Financial Literacy, Financial Behavior, Debt Reduction, Vietnam, Young Adults, Theory of Planned Behavior.