**1. Introduction**

Financial literacy is becoming increasingly recognized as an important policy objective in many countries (OECD/INFE 2015b). This reflects the increasing need for individuals to manage their own retirement savings and pensions, resulting mainly from the trend of switching to defined-contribution from defined-benefit pension plans, as well as developments in financial technology (fintech) which require greater sophistication on the part of users. However, surveys consistently show that the level of financial literacy is relatively low even in advanced economies (OECD/INFE 2016). This points to the need to develop strategies for financial education to improve financial literacy. At their summit in Los Cabos in 2012, G20 leaders endorsed the High-Level Principles on National Strategies for Financial Education developed by the Organization for Economic Cooperation and Development International Network on Financial Education (OECD/INFE), thereby acknowledging the importance of coordinated policy approaches to financial education (Group of Twenty (G20) (2012)).

Survey data on financial literacy can provide information on the levels of financial literacy of various groups within a country, and thereby indicate which groups have the greatest needs for financial education. Ideally, the survey should be carried out repeatedly to identify where policies have led to improvement of what more needs to be done. Use of a standardized survey instrument also makes it possible to make cross-country comparisons of key measures of financial literacy and related variables.

In order to accomplish this, the OECD/INFE developed a standard survey for gathering information on financial literacy and financial inclusion, the latest version of which is described in OECD/INFE (2015c). OECD/INFE (2016) and OECD/INFE (2017) provides summaries of the results of these surveys for over 30 countries. However, this list includes only five Asian economies—Hong Kong, China; India, the Republic of Korea; Malaysia; and Thailand—and most of these have relatively high incomes. Our study of adult financial literacy in Cambodia and Viet Nam breaks new ground in two ways: (i) It marks the first implementation of the OECD/INFE survey in the so-called CLMV countries (Cambodia, Lao PDR, Myanmar, and Viet Nam); and (ii) Cambodia and Viet Nam have considerably lower levels of per capita income than do most of the other countries previously surveyed. In 2015, nominal per capita GDP in Cambodia was \$1144, while in Viet Nam it was \$2088, compared to \$3754 for Georgia and \$3954 for Albania, the lowest among countries previously sampled (IMF World Economic Outlook database).

In the survey form, financial literacy is divided into three related aspects: financial knowledge, financial behavior, and attitudes toward longer-term financial planning. This is consistent with OECD/INFE (2016, p. 47), which defines financial literacy as " ... [a] combination of awareness, knowledge, skill, attitude, and behavior necessary to make sound financial decisions and ultimately achieve individual financial well-being." In other words, the OECD/INFE concept of financial literacy is multidimensional, reflecting not only knowledge, but also skills, attitudes, and actual behavior.

Financial knowledge is information and concepts which help individuals to compare financial products and services and make appropriate, well-informed financial decisions. A basic knowledge of financial concepts, and the ability to apply numerical skills to financial issues enable consumers to manage their financial affairs and respond appropriately to news and events that may have implications for their financial situation. Financial knowledge can be measured either objectively (through survey questions) or subjectively; i.e., by asking respondents to rate their own knowledge compared with that of their peers.

Financial behavior (or financial "savvy") refers to financial decisions and actions. Some types of behavior, such as delaying bill payments, not planning for future expenditures, or choosing financial products without researching the market, may adversely effect on an individual's financial situation and well-being. Financial behavior may thus differ from financial knowledge, and it is important to how financial knowledge can affect financial behavior.

Financial attitudes regarding longer-term financial planning include aspects such as individuals' time preference and willingness to make planned savings. For example, one survey question asks about preferences for the short term through "living for today" and spending money. Such preferences are likely to promote behaviors that could lead to reduced financial resilience and well-being.

This paper is organized as follows. Section 2 briefly discusses the literature on determinants of financial literacy and its effects. The data collection and empirical approach is presented in Section 3. Sections 4 and 5 present the descriptive analyses and empirical results, followed by conclusions and policy implications in Section 6.
