This paper investigates the impact of access to formal microcredit on the multidimensional poverty indicators of household for a case study in the Mekong Delta in Vietnam. The paper compares two determinants of household access to formal credit and the effects of access to credit on indicators of household multidimension poverty such as total income and expenditure (short term outcome indicators) and households’ total assets, educational costs, healthcare costs, and food consumption (long term effects). For these indicators a comparison is made between borrowers and non-borrowers in a sample of 325 households using propensity score matching methods. The findings confirm the impact of microcredit on household welfare for borrowers, both group-based and individual, and on long term livelihood aspects (expenditure levels on education and health care). Income and expenditure levels were significantly higher for group-based borrowers than for non-borrowers.