National comprehensive financial strategy to 2025, orientation to 2030

I. Viewpoints
1. Implementing comprehensive finance with participation and close coordination of the public and private sectors. In particular, the State plays a favorable role in creating a favorable environment to promote comprehensive finance under market orientation in line with the Party and State's guidelines and policies.
2. Promote comprehensive finance along with safety, efficiency and sustainability of the whole financial system, protecting financial consumers.
3. Applying modern technology and innovation is an important element to promote comprehensive finance.
4. Focusing on security and confidentiality; risks related to the process of providing financial products and services, especially digital financial products that are fully managed and supervised.
5. Apply international experience on breakthrough financial promotion solutions to accelerate the realization of comprehensive financial goals in Vietnam.
II. Concept, scope, object and objective
1. Concept, scope and object
a) Concept
Comprehensive finance is the ability of people and businesses to access and use financial products and services conveniently, in accordance with their needs at reasonable costs and being provided responsibly and sustainability with a focus on the poor, the low-income, the weak, small and medium-sized businesses and microenterprises.
b) Scope
Scope of the Strategy aims to popularize basic financial products and services provided by licensed organizations, including payment, money transfer, savings, credit, insurance.
c) Subjects
Objects of the Strategy are all people and businesses with special attention to the target group of people who have not been able to access or have little access to financial products and services such as: people living in rural, deep-lying and remote areas; the poor, low-income people, women and other vulnerable people; small and medium-sized enterprises, microenterprises, cooperatives and household businesses.
2. General objectives
All citizens and businesses have safe and convenient access to and use of financial products and services in accordance with their needs and at reasonable costs, responsibly and sustainably provided by licensed organizations.
3. Specific objectives
a) Developing a variety of supply organizations, distribution channels, financial products and services provided by licensed organizations to enhance the accessibility and use of those who have not been accessed or little access to financial products and services;
b) Promote application of digital technology, enhance innovation in the design and distribution of financial products and services in the direction of simplicity, convenience, ease of use, cost reduction and conformity with needs and affordability of all people, businesses, especially small and medium-sized enterprises, rural population, remote and isolated areas, low-income and disadvantaged people;
c) To build a legal corridor to promote fair competition, encourage innovation and create favorable conditions for the development of a variety of supply organizations, distribution channels, financial products and services;
d) Complete appropriate financial infrastructure, facilitate and secure transactions, ensure smooth information between all market participants;
Development of a system of microfinance organizations, programs and projects that operate safely, effectively and sustainably, aiming at serving the poor, low-income people, women and super businesses with diverse, flexible and appropriate financial products and services, contributing to implementation of the Party and State's policy on ensuring social security and sustainable poverty reduction;
e) Improve financial understanding for citizens and businesses, ensuring that all citizens and businesses have appropriate knowledge, skills, attitudes and behaviors in selecting and using financial products and services. Develop a mechanism to protect financial consumers to ensure consumers are provided with adequate information and fair treatment.
4. A number of targets to strive to 2025
To strive to achieve the following specific targets by the end of 2025:
- At least 80% of adults have bank accounts or other authorized organizations; moving towards the goal of each adult having at least one trading account at a bank or other authorized organization by 2030;
- At least 20 branches and transaction offices of commercial banks per 100,000 adults;
- At least 50% of the total number of communes that have financial service points (branches, transaction offices of credit institutions and bank agents; except for the points of financial services provided by Vietnam Bank for Social Policies );
- At least 25% - 30% of adults deposit at savings credit institutions;
- The number of non-cash payment transactions reaches an annual growth rate of 20% - 25%;
- At least 250,000 small and medium-sized enterprises have outstanding loans at credit institutions;
- Outstanding loans for agricultural and rural development out of total credit outstanding to the economy at 25%;
- Average insurance premium revenue in GDP is 3.5%;
- At least 70% of adults have information about credit history in the credit information system of the State Bank of Vietnam.
III. Main tasks and solutions
1. Complete the legal framework to create an enabling environment for implementation of comprehensive financial goals
a) To study and issue regulations on banking agents, which allow banks to be assigned to non-bank entities to act as agents, to supply a number of banking products and services as entrusted by banks for commissions;
b) Study and promulgate regulations on transaction accounts at different levels with reasonable fee policies in order to create favorable conditions and encourage all citizens in the society to open accounts to conduct non-cash payment transactions;
c) Reviewing, amending, supplementing or promulgating new legal documents prescribing the identification of customers and identification of customers' identities according to levels suitable to the nature and level of risks of each type of product, service and customer group; allowing the application of simple and indirect customer identification process remotely via electronic online (e-KYC) for opening accounts at licensed organizations to serve payment needs of small values of individuals and businesses;
d) Reviewing, amending, supplementing or issuing new legal documents that regulate cryptocurrencies and electronic accounts being prepayment payment means to use for non-payment methods such as prepaid card, electronic wallet...;
Reviewing, amending, supplementing or promulgating new legal documents on the provision of financial products and services, especially those based on digital technology application platforms aims to create a stable, complete and timely legal corridor for organizations providing financial products and services;
e) Reviewing, amending, supplementing or issuing new legal documents in order to create favorable conditions for mobilizing social resources, encouraging the participation of all economic sectors in the operation of microfinance; build and develop a system of microfinance organizations, programs and projects that operate safely and effectively, expand access to financial services for the poor, low-income people, women and micro businesses;
g) Reviewing, amending, supplementing or issuing new legal documents on inspection and supervision in order to ensure the safe and effective implementation of the comprehensive financial system;
h) To study and promulgate a control management mechanism for financial technology activities in the banking sector;
i) Research and promulgate mechanisms and policies to encourage the development of micro insurance products for the poor and low-income people;
k) Study and promulgate regulations on access, exploitation and use of the national database on population, allow financial service-providing organizations to extract information from the national database about population in service of customer identification and authentication by online electronic method;
l) Study and promulgate regulations on the implementation of authentication and customer identification by online electronic method (e-KYC) based on the exploitation of national data on the population.
2. Diversify the supply organizations and distribution channels to support people and businesses to access and use basic financial products and services in a convenient and affordable manner.
a) To develop a model of banking agents in order to expand the scope of banking service provision to people in areas where there is little or no banking service.
- Research, gradually implement activities of banking agents; banks, which meet the prescribed conditions, may open service provision points through agents in places where the density of branches and transaction offices of credit institutions is still low;
- Research and create conditions for non-bank organizations with wide networks or operating areas in rural, deep-lying and remote areas (such as people's credit funds, microfinance institutions, post offices, gas stations, networks of telecommunications organizations, networks of some other organizations other than banks ...) to become agents of banks to quickly expand the scope of financial service supply points.
b) Developing modern distribution channels based on the application of digital technologies to expand the scope of low-cost financial products and services, especially via mobile phones.
- Promote payment via mobile devices, strongly develop digital banking products and services for people living in rural, deep-lying and remote areas;
- Encouraging and creating conditions for financial technology and telecommunication organizations to actively participate in the supply chain of financial products and services, on the basis of healthy cooperation and competition with organizations. Credit;
- Encourage credit institutions to cooperate with financial technology organizations and payment intermediaries to develop new easy-to-use, low-cost, convenient and safe payment technology solutions, in accordance with the individual payment transactions.
c) Expanding the coverage of service points of credit institutions in rural, remote and isolated areas to create favorable conditions for people in rural, deep-lying and remote areas to access products financial products and services.
- Encouraging credit institutions to develop their network of branches and transaction offices in rural, deep-lying and remote areas;
- Continue to streamline and develop ATM and POS network across the country to ensure efficiency, better meet the needs of the market; encourage banks and other organizations to invest and expand ATM and POS network in rural, remote and isolated areas.
d) Effective use of the public postal network to provide basic financial services.
Encourage development of basic financial services provided through the public postal network; create conditions for the public postal network to cooperate with financial service providers and financial technology organizations to develop low-cost digital financial services to serve people in rural and remote areas;
d) Developing a system of microfinance organizations, programs and projects that operate safely and effectively, expanding access to financial services for the poor, low-income people, women and micro businesses.
- Encourage microfinance organizations, programs and projects to diversify products and services for the poor, low-income people, women and microenterprises; encourage development of the model of linking commercial banks with microfinance organizations, programs and projects; encourage cooperation between microfinance organizations, programs, projects and financial technology institutions to enhance technology application to provide simple, convenient and low-cost services to people in rural, remote and isolated areas;
- Supporting microfinance organizations, programs and projects in accessing preferential capital sources; strengthen socialization of support and participation in contributing financial resources in provision of microfinance products and services;
- Encourage microfinance institutions, programs and projects to participate in promoting financial education;
- Facilitate and encourage socio-political organizations, local authorities and non-governmental organizations to actively participate in and support microfinance development.
e) Strengthening capacity of specialized financial institutions oriented to operate in line with the goals of comprehensive finance, including: Vietnam Bank for Agriculture and Rural Development, Vietnam Bank for Social Policies, Cooperative Bank, People's Credit Fund in line with Vietnam Banking Industry Development Strategy to 2025, orientation to 2030 approved under Decision No. 986 / QD-TTg of August 8, 2018 of the Prime Minister.
3. Developing a diversified range of basic financial products and services, aiming at the target subjects of comprehensive finance
a) Promote non-cash payment in the economy, facilitate target of comprehensive financial access and use of non-cash payment services.
- Encourage banks to provide payment accounts with no account maintenance fees and minimum account balance, limited features, linked to ATM cards for retirees, social welfare beneficiaries, the elderly, the poor, students, students and other suitable disadvantaged people ... to use deposit, withdrawal, small value remittance services, receive pensions, social benefits and pay utility bills;
- Promote payment of state budget expenditures and state budget origin by the non-cash payment method for salaries, allowances, benefits and suppliers of goods and services ;
- Promote payment by non-cash payment methods of individuals and businesses for collection, payment of taxes, fees, charges, collection of administrative fines, periodic invoice payments (electricity, water, telecommunications, communication, tuition);
- Promote payment of pensions, non-cash social insurance benefits through the banking system;
- Encourage credit institutions and other authorized organizations to develop easy-to-use, easy-to-use payment and money transfer services in rural, remote and isolated areas;
- Encourage businesses to pay workers and pay for goods and services through accounts.
b) Promote development of financial products and services to serve agricultural and rural production and business.
- Supporting credit institutions to improve lending efficiency to support production and consumption of agricultural products in the country through application of high technology and value chain linkages in agricultural production;
- Development of insurance products in the field of agricultural production;
- Develop consumer loan products suitable to the consumer borrower with reasonable interest rates, contributing to the prevention of "black credit";
- Supporting the capacity building of credit institutions in risk management, product design and business development to enhance financial and human resources for restructuring and transformation of agricultural sector, which focuses on diversification of income of agricultural production.
c) Promote development of financial products and services for small and medium-sized enterprises, cooperatives and production and business households.
- Continue to study and improve the current credit guarantee mechanism in order to improve the effectiveness of credit guarantee activities;
- Develop forms of unsecured loans, mortgages with goods, properties on land, movables and cash flows;
- Encouraging credit institutions to expand supply of loans without requiring collateral with forms of loan management suitable to operation characteristics of small and medium-sized enterprises and cooperatives, production and business households;
- Encourage non-bank credit institutions, people's credit funds, microfinance institutions and insurance enterprises to provide products and services suitable to the different needs of small and medium-sized enterprises, cooperatives, production and business households;
- Improve the operational efficiency of off-budget state financial funds of a lending nature and credit guarantees.
4. Completing and increasing efficiency of using financial infrastructure, facilitating transaction fee reduction and meeting the requirements of comprehensive financial promotion
a) Complete the payment infrastructure.
- Accelerate construction and completion of the automatic clearing system for retail transactions (ACH system) to soon put into operation, serving personal and business payments at all times. (24/7);
- Research and develop a mechanism for financial switching and electronic clearing in the direction of allowing more organizations and businesses that meet the conditions prescribed by law to provide services to increase competitiveness, ensure security and safety, increase processing efficiency, reduce payment transaction fees, transfer money to people and businesses;
- Research and promulgate technical standards to enhance interconnection between credit institutions, between credit institutions and financial technology institutions and service-providing organizations for electronic payment transactions in the economy;
- Enhancing assurance of security and safety in e-banking activities to create public trust and protect financial consumers.
b) Building a national database on population
- To adopt policies to connect and share the national database on population with other specialized databases;
- Having a policy of attaching a citizen identification number to all personal accounts to serve the management and authentication of customer and beneficiary information when supplying products and services;
- Enhancing the connection and information sharing among agencies and organizations in order to accelerate administrative procedure reform and e-government development.
c) Develop a comprehensive national financial database based on a set of statistical indicators on the level of access, use and quality of financial services; mainstream comprehensive financial indicators in the living standard survey program; conduct sociological surveys on people's access to financial services.
d) Building a unified, complete and high-quality national credit information database on the basis of modern technology; fully integrating information from credit institutions in the banking industry, gradually expanding sources of information from non-industry organizations; timely diversify provision of products and services suitable to each type of credit institution.
5. Financial education, capacity building and financial knowledge; financial consumer protection
a) Develop and implement comprehensive measures to enhance financial management knowledge and skills, improve knowledge of financial products and services of people and businesses, thereby increasing ability to use and assess benefits and risks of financial products and services being provided by licensed organizations so that people and businesses can wisely choose products and services which are suitable to their needs.
- Integrating financial education content into the national general education program;
- Develop and implement programs to provide information to the people about benefits, costs, risks and methods of effective management and use of financial products and services; at the same time, publicize the process of handling complaints and disputes for all customers using the service;
- Promote educational communication programs, disseminating financial knowledge to all people and businesses;
- Improve financial skills, especially risk management tools, insurance, financial leasing ... for agricultural producers;
- Improve the accounting and financial management capacity of cooperatives;
- Strengthening the role of socio-political organizations in propagating and mobilizing union members and members in financial education.
b) Develop a legal framework for the protection of financial consumers.
- Studying and promulgating regulations on the protection of financial consumers, which clearly define the mechanism to protect financial consumers against unfair treatment by financial service-providing organizations; information disclosure requirements of financial service-providing organizations; transparency of approaches to and effective settlement of disputes by financial service-providing organizations towards financial consumers;
- Make the fee structure and service fees transparent to financial consumers;
- Promote the responsible lending role of credit institutions, emphasizing enhancement of financial knowledge for borrowers, especially the right to access and protect credit information, mechanisms resolve complaints and correct errors of information.
c) Development of Vietnam Deposit Insurance in accordance with the Vietnam Banking Sector Development Strategy to 2025, orientation to 2030 approved under Decision No. 986/ QD-TTg dated August 8, 2018 of Prime Minister.
6. Other support solutions
a) Integrating comprehensive financial goals into new rural construction programs;
b) Develop and implement human resource training programs at management agencies and financial service-providing organizations on comprehensive financial promotion in Vietnam;
c) Promote comprehensive financial cooperation with countries and international development organizations in promoting comprehensive finance in Vietnam;
d) Promote propaganda about the role and significance of comprehensive finance to state management agencies, local governments at all levels, socio-political organizations, finance service-providing organizations, citizens and enterprises.
d) To accelerate the restructuring of credit institutions according to the schemes and plans approved by competent authorities.
IV. Organization of implementation
1. Establishing a National Steering Committee to direct the implementation of the Strategy; functions, tasks and working regulations of the National Steering Committee chaired by the State Bank of Vietnam in coordination with relevant agencies and submitted to the Prime Minister for decision; The assisting apparatus of the National Steering Committee is located at the State Bank of Vietnam, organized by the Governor of the State Bank of Vietnam.
2. Assignment of responsibilities to perform a number of major tasks
a) Ministries, branches, localities and relevant agencies shall, based on their assigned functions and tasks, actively coordinate with the State Bank of Vietnam:
- Within 6 months after the date of the Strategy's approval, complete the elaboration of an action plan of its unit and send it to the State Bank of Vietnam for synthesis;
- Organize implementation of the tasks assigned in the action program and the tasks set out in the action plan. Annually, report on implementation results to the State Bank of Vietnam for synthesis.
b) The State Bank of Vietnam shall assume the prime responsibility and coordinate with the concerned ministries, branches, localities and agencies:
- Organizing implementation; guide, urge and evaluate implementation of the Strategy and make reports on difficulties and problems and evaluate the results of the implementation of the Strategy annually;
- In 2025, organize a preliminary review of the results of the implementation of the Strategy, propose the formulation of objectives, targets and supplement and amend tasks and solutions (if necessary) for the next period;
- Review and evaluate results of the implementation of the Strategy by 2030.
c) The Ministry of Planning and Investment is responsible for:
- Coordinate with the State Bank of Vietnam and relevant agencies to integrate comprehensive financial goals in the process of elaborating and implementing the 5-year and annual socio-economic development plans;
- Direct the General Statistics Office to work closely with the State Bank of Vietnam to formulate and select appropriate comprehensive financial indicators to integrate into the population living standard survey program;
- Coordinate with the State Bank of Vietnam in collecting and providing data on access to credit and financial services through supply and demand surveys for businesses and individuals;
- Assume the prime responsibility for consolidating and allocating annual development investment capital according to the provisions of the Public Investment Law, the State Budget Law and relevant guiding documents for the implementation of the Strategy.
d) The Ministry of Finance is responsible for: Assuming the prime responsibility for synthesizing and allocating regular annual spending capital according to the provisions of the State Budget Law and relevant guiding documents for the implementation of the Strategy.
d) Ministry of Information and Communications, Ministry of Education and Training, Vietnam Television and Voice of Vietnam according to their functions and duties are responsible for propagandizing, educating and raising awareness of comprehensive financial society and the situation of Vietnam's comprehensive financial objectives.
f) Ministry of Foreign Affairs is responsible for:
- Coordinate with the concerned ministries and branches in monitoring the development of comprehensive finance in the world and in the region; explore the models, policies and experiences of countries on comprehensive financial development;
- Coordinate with the State Bank of Vietnam to enhance participation in international financial programs and forums;
- Coordinate to promote comprehensive financial cooperation in cooperation with partners and in multilateral forums.

Long Giang
Source: Vitic/ thuvienphapluat.vn