Vietnam's National Comprehensive Financial Strategy until 2025, with orientations to 2030

Updated On : August 2020

On 8^th August 2018, the State Bank of Vietnam issued a decision to launch an action plan for the Vietnam's banking sector. A conference was organized on April 2019 which was chaired by the BV Deputy Governor Nguyen Kim Anh. The conference was organized to implement the action program of the banking industry. On January 2020, the prime minister of Vietnam approved the "National Comprehensive Financial Strategy until 2025, with orientations to 2030".

This strategy was launched with an aim to promote comprehensive finance with safety, efficiency and sustainability of the whole financial system and protecting financial consumers.

The key viewpoints of the strategy are to implement comprehensive finance with the help of the public and private sectors. To promote finance and with safety, efficiency and sustainability of the whole financial system. To make use of modern technology and innovation for promoting comprehensive finance. To focus on security and risks related to the process of providing digital financial services. To accelerate the realization of comprehensive financial goals in Vietnam make use of international experience.

Following are the objectives of the strategy

• To enhance the accessibility of financial products & services by developing a variety of supply organizations, distribution channels, financial products & services provided by licensed organizations
• To promote the application of digital technology, enhance innovation in the design and distribution of financial products & services in terms of simplicity, convenience, ease of use, cost reduction
• To build a legal framework for promoting the fair competition, and create favourable conditions for the development of a variety of supply organizations, distribution channels, financial products & services
• To develop a financial infrastructure, to facilitate and secure transactions, to ensure smooth information between all market participants
• To develop a system that can be operated safely, effectively and sustainably by the microfinance institutions
• Spread knowledge of the importance of finance and financial products and services across the citizens

Following are the targets of the strategy

• By the end of 2025, at least 80% of adults should have a trading account at a bank / financial institution
• By 2030 each adult should have at least one transaction account at a bank / financial institution
• At least 15 branches and transaction offices of commercial banks per 100,000 adults
• At least 50% of communes should have points of financial service points
• At least 25-30% of adults deposit savings at a credit institution
• The digital payment transactions should reach the annual growth rate of 20% - 25%
• At least 250,000 SMEs and MSMEs should have outstanding loans at credit institutions
• The outstanding loans for agriculture and rural development should reach 25% out of total credit outstanding to the economy
• The average insurance premium revenue in the GDP should be 3.5%
• At least 70% of adults should have information about their credit history in the credit information system of the State Bank of Vietnam

The financial institutions in Vietnam need to adopt digital banking solutions like mobile banking, internet banking, lending management, doorstep banking, anti-money laundering, core microfinance solutions.

With the adoption of technology, the financial services can be reached to small and medium enterprises, remote areas in the country.