In the current rapidly evolving and unpredictable global context, with development increasingly based on science and technology, management models and financial provision methods must also transform appropriately to enhance effectiveness and limit risks.
Therefore, developing financial inclusion is not only about expanding the banking system and financial markets, but is a process of creating a flexible, transparent, and secure financial environment.
Many positive outcomes
In 2020, the prime minister signed a decision approving the national financial inclusion strategy until 2025, with orientation for 2030, outlining six specific objectives, nine targets for 2025, and six groups of tasks and solutions.
To date, all six task and solution groups have been actively implemented by various ministries and agencies. The State Bank of Vietnam (SBV) reported that the legal framework for financial inclusion objectives continues to be synchronously refined.
The average number of commercial bank branches and transaction offices per 100,000 adults has reached 15.69, while the proportion of communes/towns with financial service points stands at 32.98%.
Cashless payments have been continuously expanded through decisive solutions from various ministries, localities, and related agencies. The value of cashless payments rose by 34.54% overall, by 33% via the internet channel, by 34.34% via mobile phones, and 84.77% via QR codes.
In the public sector, the State Treasury has completed providing full online public services for state budget expenditure. Over 99% of state budget transactions are conducted through online public services, while 100% of customs-related online public services are paid through the national public service portal.
By the end of 2024, over 931,400 businesses had successfully registered for electronic tax filing, equivalent to 98.66%. For individuals, there were over 10.4 million accesses to the electronic tax system using digital identity accounts. The social insurance sector has enhanced non-cash payments for pensions and social insurance benefits, with approximately 80% of recipients in urban areas receiving payments via their accounts.
The Vietnam Bank for Social Policies (VBSP) remains the largest provider of inclusive financial services and micro-credit for poor households and policy beneficiaries in Vietnam. Total policy credit resources now exceed 389 trillion VND (over 15 billion USD), with total outstanding loans of over 373 trillion VND (over 14.7 billion USD) serving more than 6.9 million customers.
According to Dr Tran Van from the Institute for Digital Economy Development Strategies (IDS), rapid growth in service provision channels and digital transformation has increased adult access to modern financial services. However, the latest IDS research indicates significant disparities between income levels and business sizes.
For businesses, account ownership has deteriorated over time across all size groups, with the financial service access gap widening unfavourably for smaller enterprises. Micro-enterprises and business households (approximately 5-6 million) face particularly limited access to formal credit.
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A VBSP official instructs people on how to use a mobile app to manage their policy credit. |
Synchronous, comprehensive and secure solutions needed
To promote financial inclusion, the SBV has directed credit institutions to deploy timely credit programmes to meet production and business capital needs, simplify lending processes and procedures, and review existing fees and charges.
The central bank also works with the Ministry of Finance to promote cashless payments, digitalise tax collection and social security payments, and develop national financial inclusion databases.
The government emphasises the need to develop financial services for people in rural, remote and disadvantageous areas as well as vulnerable populations. Amid the rapid development of science-technology and digital transformation, the legal framework must be quickly perfected.
It is also necessary to continue diversifying and designing financial products and services appropriate with each group, increase information security for customers, and enhance understanding of finance and skills of using financial services for the people.
At a recent meeting of the national steering committee on financial inclusion, Prime Minister Pham Minh Chinh emphasised the objective of ensuring equal access to financial services for all citizens, particularly those in difficult circumstances and vulnerable groups.
The people must truly benefit from the strategy, must be protected when accessing financial services, especially as these services become digitalised, without allowing malicious actors to exploit them and impact citizens and businesses.
It is necessary to modify, supplement and refine institutions, as well as create and effectively implement a transparent legal framework, to strictly manage and promote development while ensuring the legitimate rights and interests of citizens and businesses.
VBSP Deputy General Director Hoang Minh Te noted that since 2017, the bank has implemented digital technology in its operations and made policy decisions to help the poor and policy beneficiaries, particularly women, gradually access banking services via mobile phones.
Dr Tran Van assessed that developing countries wishing to quickly and effectively cover formal financial services need to intensify digital technology applications to modernise financial service delivery channels. For Vietnam, despite achieving numerous accomplishments in technology application and digital transformation of financial services, the current state of service access indicates substantial room for improvement.
Vietnam not only lags behind but also has a large market size with nearly 100 million people; therefore, without breakthrough solutions and technology utilisation, accelerating progress will be challenging. Global best practices also demonstrate that technology application enables financial and banking services to be provided anywhere, even without bank presence.
