Government wants every Vietnamese to have a bank account

06:00 | 23/10/2020 Economy

(VEN) - Financial inclusion is helping Vietnam reduce poverty, create jobs, increase incomes, develop businesses, and promote sustainable economic growth.

government wants every vietnamese to have a bank account

Seventy percent of adults in Vietnam have bank accounts

Vietnam is one of 25 prioritized countries included in the World Bank’s program of Universal Financial Access by 2020 in a bid to enhance individuals’ access to formal financial services. Financial inclusion is also one of the three pillars of the ASEAN (Association of Southeast Asian Nations) Vision 2025 on financial integration.

Data from the State Bank of Vietnam (SBV) show 89 million personal bank accounts belonging to 70 percent of adults in Vietnam.

Banks in Vietnam have been implementing the national inclusive finance strategy. Nguyen Hai Long, Deputy General Director of the Vietnam Bank for Agriculture and Rural Development (Agribank), said loans for agriculture and rural development account for almost 70 percent of the bank’s total outstanding loan balance, and the bank carved a more-than-50-percent niche on the domestic loan market for agriculture and rural development.

At the Tien Phong Commercial Joint Stock Bank (TPBank), credit of up to VND5 billion for each individual customer can be disbursed within 20 minutes to one hour.

Pham Tien Dung, Director of SBV’s Payment Department, emphasized the important role of increasing access to inclusive finance at a reasonable cost and with reliable service. Financial inclusion will not become popular until it can be accessed through a smart phone, Dung said.

Nguyen Thi Thu Hien, General Director of the Tinh Thuong Microfinance Institution (TYM), said TYM is focusing on diversifying products, cooperating with credit and fintech institutions, innovating information technology (IT) application, and improving members’ capacity, especially in digitization.

Bank account targets

Agribank will diversify and improve operations of distribution channels and transaction facilities, and create conditions for people and enterprises to reach financial and banking services, said Agribank Deputy General Director Nguyen Hai Long.

Nguyen Kim Anh, Deputy Governor of the State Bank of Vietnam, said efficient implementation of solutions, and state and privately owned resource mobilization will enable every Vietnamese person and business to approach and safely use affordable financial products and services, provided by authorized institutions, in accordance with their needs. This will ensure the banking sector’s healthy, efficient, safe and sustainable development.

According to the national inclusive finance strategy to 2025, with a vision to 2030, approved by the Prime Minister early this year, at least 80 percent of adults in Vietnam will have accounts at banks and/or authorized and licensed institutions by 2025. Every adult in the country will have at least one bank account by 2030; at least 25-30 percent of adults will deposit money at a credit institution; and the number of non-cash payments will grow 20-25 percent annually.

Financial inclusion is the increase in the supply of financial services including credit, savings, payment services and insurance from formal financial providers to all individuals and organizations, particularly for low-income and vulnerable people of working age, according to the United Nations. Financial inclusion is considered an important pillar for mobilizing and effectively using social resources while narrowing and repelling black credit. It is also expected to promote the rotation of savings and investment capital and create job opportunities, fuelling economic growth, sustainable poverty reduction, social welfare and order, and improving living standards.

Developing safe financial inclusion and repelling black credit will make effective contributions to the growth of a synchronous and healthy financial market while promoting investment and supporting social security, creating favorable conditions for the country’s rapid, inclusive and sustainable economic development in the context of the Fourth Industrial Revolution or Industry 4.0.

Hoang Lan