Vietnam Targets Transparent Digital Financial Ecosystem by 2030

The Ministry of Finance has announced it would develop a foundation for a modern and transparent digital financial ecosystem based on big data and open data by 2025. The initiative will be carried out under the Ministry’s digital transformation plan aimed for 2025, with orientations to 2030. It was newly signed by Finance Minister Ho Duc Phoc.

By 2030, the Ministry strives to establish a developed digital financial ecosystem with enhanced cybersecurity and efficiency. The overall objective of the plan is to accelerate digital transformation in tandem with building a sustainable, advanced, and globally-integrated national financial system. The move is expected to boost growth, enhance the resilience of the economy, and maintain macro-economic stability and financial security.

The Ministry will apply fourth industrial revolution technologies and leverage the progress that’s been made with the development of the e-government to transform the finance sector. It will offer more digital financial services to bolster the digital economy and digital society. The finance sector will play a vital role in creating, connecting, and sharing data, digitising platforms, and optimising the digital information of the government, people, and organisations.

The Ministry will cut down the number of public administrative procedures, and reform, simplify, and standardise public financial services to reduce costs and improve service quality and productivity by 2025. Accordingly, the delivery of most public administrative services will be shifted online, providing citizens with a paperless and convenient experience. The Ministry also intends to step up the implementation of the National Single Window system and the ASEAN Single Window system to facilitate trade.

Further, the Ministry has plans to set up a modern, public, and transparent digital financial platform by 2025, based on big data and open financial data. By 2030, the Ministry claimed a digital financial ecosystem will be formed in all fields, ensuring administrative effectiveness and the safety of information. Civil servants and public employees will be trained in digital skills to facilitate the process.

The rate of financial technology adoption in the country is gradually and significantly increasing. The number of subscribers of the government’s Mobile Money initiative has quadrupled since the service was launched in January this year. 67% of these subscribers reside in rural, mountainous, border, island, and remote areas.

As OpenGov Asia reported, subscribers with at least one Mobile Money transaction by the end of June exceeded 1.72 million, accounting for 97.3% of the total. Additionally, the number of households with fibre optic connections in the first half of this year increased by 9% compared to the same period of 2021 and by 17% against that of 2020. According to the Ministry of Information and Communications (MIC), the goal of having 75% of households using fibre optic services this year is achievable. Vietnam also aims to have more than 50% of the population own digital payment accounts.

In deploying Mobile Money, the government has taken advantage of existing infrastructure and data and telecommunications networks. This has reduced social costs and expanded cashless payment channels on mobile devices. Industry experts have stated that the COVID-19 pandemic highlighted the need to universalise digital payments. Regardless of an Internet connection or bank account, and with just phone numbers, users can easily make cashless transactions through their Mobile Money account. The pandemic also greatly boosted the e-commerce market, with non-cash payments accounting for 70% of total retail transactions in Vietnam last year.

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