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Unlocking the Potential: A Call for a More Open and Inclusive Banking Sector

1 June, 2025

Prime Minister Pham Minh Chinh attended the “Banking Sector Digital Transformation 2025” event, held at the Government Headquarters on May 29th.

Emphasizing that “everyone needs money,” the Prime Minister highlighted the objective of digital transformation to facilitate smoother connections and transactions between commercial banks and citizens, businesses, and the state. This will contribute to the country’s rapid and sustainable development, fostering a digital economy and society. It will also play a role in macroeconomic stability and inflation control, ensuring the economy’s balance through reduced costs for the banking sector, citizens, and enterprises.

On this occasion, the State Bank of Vietnam (SBV) announced a VND 500,000 billion credit package (with the participation of 21 commercial banks) for infrastructure projects in strategic sectors such as transportation, power, and digital infrastructure. The lending rates for this program are preferential, offering a reduction of 1% or more compared to medium and long-term lending rates.

The Prime Minister highly appreciated the preparation and announcement of this credit program, which aims to support businesses and individuals in implementing scientific, technological, innovative, and digital transformation projects, as well as strategic infrastructure development.

While acknowledging the program’s contribution to the implementation of Resolution 57 of the Political Bureau, the Prime Minister described it as a manifestation of the banking sector’s compassion and a significant effort by the SBV and participating commercial banks. He further encouraged the banks to reduce costs and offer even more favorable conditions, suggesting that the lending rates for this program should be at least 1.5% lower than medium and long-term rates.

The Prime Minister requested the SBV and commercial banks to promptly organize the implementation of the VND 500,000 billion credit package, emphasizing the importance of turning commitments into tangible and measurable outcomes. He stressed the need for honest communication and real results that bring tangible benefits to the people.

He also noted the importance of appropriate management and designing regulations with feasible “outputs.” Encouraging citizens and businesses to borrow from this program is crucial, as it will bring the program to life, injecting capital into the economy. By working together, banks, citizens, and businesses can foster a sense of national unity and shared success, enjoying the fruits of their collaborative efforts.

Additionally, the Prime Minister expressed his concern for small, medium, and micro-enterprises, as well as the five million existing business households. He suggested that support for these entities could be provided through public-private partnerships, utilizing electronic invoices generated from cash registers. This approach would promote digital transformation, foster business growth, and contribute fairly to the state budget, helping to prevent tax losses, especially in the fields of catering and services.

Reiterating that the digital transformation of the banking sector is heading in the right direction, the Prime Minister wished the sector continued acceleration, breakthroughs, and early achievements in digital transformation, solidifying its pioneering role and setting an example for other industries.

Cashless Payment Value Reaches 25 Times GDP

According to reports and opinions at the event, the banking sector’s databases have been synchronously deployed and effectively connected, sharing data with many national and specialized databases. These include the credit database, storing information on 54 million borrowers; the anti-money laundering database, storing information on 36 million customers, 154 million accounts, and 1.3 billion transactions; and connections with the National Public Service Portal and various national databases, especially the National Population Database.

So far, 57 million customer loan profiles have been cross-referenced, and 113 million individual customer profiles and 711,000 organizational customer profiles have been cross-referenced with biometric information. By promoting integration, connection, and data sharing, the banking sector has facilitated online payment of fees, charges, taxes, hospital fees, school fees, transportation fees, fuel purchases, and goods and services, linked to the issuance of electronic invoices. This has contributed to a 20% annual growth in e-commerce.

Cashless payments have witnessed remarkable development, with 87% of adults now holding payment accounts, surpassing the 80% target set for 2025. The value of cashless payments in 2024 reached over VND 295,000 billion, 25 times the GDP. Approximately 80% of pensioners and social insurance and unemployment benefit recipients in urban areas receive their payments through accounts.

While acknowledging the achievements, the reports and opinions also pointed out existing limitations, challenges, and difficulties in the digital transformation of the banking sector. These include a legal framework that has not kept pace with technological advancements, the development of digital infrastructure and platforms lagging behind practical needs, a shortage of high-quality human resources, and the daunting task of ensuring information security and preventing cyberattacks, fraud, and the loss of funds from customer accounts.

To address these challenges, attention should be given to enhancing innovation and product development capabilities, building and developing digital ecosystems, changing user habits, and building digital trust. Additionally, fostering a culture of innovation and entrepreneurship within the banking sector will be crucial.

Khang Di

– 21:00 29/05/2025