Many studies have been conducted to estimate effects of rural credit programs on household income in both Vietnam and foreign coutries. Some provided positive evidence of such programs’ efficiency while others suggest that not all credit programs improved household income. Responding to the question of whether formal credit affects household income will contribute to directions determined to adjust allocation of resources for agriculture and rural development. In addition to the use of Difference-in-Differences (DD) method in connection with pooled OLS regression, this paper employs panel data from Vietnam Access to Resources Household Survey (VARHS) in the years 2006–2012, and finds that the formal credit does have effects on the rural household income. Additionally, the paper offers three groups of policies for promoting the role and improving efficiency of the formal credit programs on the household income in rural Vietnam.