Financial Strategy until 2025, with orientations to 2030

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

The State Bank of Vietnam has decided to launch an action plan for the banking sector in Vietnam. A conference was organized in April 2019 under the chairmanship of the vice governor of the BV Nguyen Kim Anh. The conference was organized to implement the Banking Sector Action Program. In January 2020, the Prime Minister of Vietnam approved the “Global National Financial Strategy for 2025, with guidelines for 2030”.

 This strategy was launched with the aim of promoting global financing with the safety, efficiency, and sustainability of the entire financial system and protecting financial consumers.

 Key positions in the strategy are the implementation of global funding by the public and private sectors. Promote safe, efficient, and sustainable financing throughout the financial system. Use modern technology and innovation to get global funding. Focus on security and the risks associated with the provision of digital financial services. It builds on international experience to accelerate the achievement of global financial goals in Vietnam.

These are the objectives of the strategy:

1. Improve the accessibility of financial products and services by developing a variety of supply organizations, distribution channels, financial products, and services offered by licensed organizations.

2. Promote the use of digital technology, increase innovation in the design and distribution of financial products and services in terms of simplicity, convenience, ease of use, cost reduction

Build a legal framework to promote fair competition and create favorable conditions for the development of a variety of supply organizations, distribution channels, products, and financial services

4. Develop the financial infrastructure, facilitate and protect transactions, ensure the liquidity of information among all market participants

5. Develop a system that can be managed safely, effectively, and sustainably by microfinance institutions

Spread the knowledge of the importance of finance and financial products and services among citizens

These are the objectives of the strategy:

1.By the end of 2025, at least 80% of adults must have a trading account with a bank / financial institution

2.By 2030, every adult should have at least one transaction account with a bank / financial institution

3. At least 15 commercial banks and commercial offices for every 100,000 adults

4. At least 50% of municipalities must have financial services

5. At least 25-30% of adults deposit savings with a credit institution

6. Digital payments are expected to reach an annual growth rate of 20% to 25%

7. At least 250,000 SMEs and SMEs must have outstanding loans from credit institutions

8. Outstanding loans to agriculture and rural development are expected to account for 25% of total outstanding loans to the economy.

9. The average income from insurance premiums in GDP should be 3.5%

10. At least 70% of adults must have information about their credit history in the credit information system of the State Bank of Vietnam

Financial institutions in Vietnam are required to use digital banking solutions such as mobile banking, internet banking, loan management, home banking, anti-money laundering, and basic microfinance solutions.

 With the adoption of technology, financial services can be provided to small and medium-sized businesses in remote parts of the country.

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