Prime Minister: Banking industry must accelerate and break through digital transformation to reach the finish line sooner than expected

(Chinhphu.vn) - On the afternoon of May 29, at the Government Headquarters, Prime Minister Pham Minh Chinh attended the event "Banking Sector Digital Transformation Day 2025" and announced a VND500,000 billion credit program for science, technology, innovation, digital transformation and strategic infrastructure.

Prime Minister Pham Minh Chinh requested the banking industry to accelerate and make a breakthrough in digital transformation to reach the finish line sooner than expected - Photo: VGP/Nhat Bac

This is the third time Prime Minister Pham Minh Chinh has attended the event "Digital Transformation Day of the Banking Industry".

Also attending were comrade Le Hoai Trung, Secretary of the Party Central Committee, Chief of the Party Central Committee Office; comrade Nguyen Thi Hong, member of the Party Central Committee, Governor of the State Bank of Vietnam; comrade Phan Van Mai, member of the Party Central Committee, Chairman of the National Assembly's Economic and Financial Committee; leaders of ministries, branches, central agencies; representatives of international organizations, credit institutions, corporations, and enterprises.

At the event, the Prime Minister and guests experienced the services directly at the exhibition with 19 booths displaying digital banking products and services of commercial banks, payment intermediaries, and technology solution providers.

Also at the event, the experience journey "From digital identification to smart transactions" of the banking industry was presented with a report from the Payment Department - State Bank of Vietnam; banking products and services applying modern technology of commercial banks and enterprises were vividly and seamlessly demonstrated into a story, from digital identification to cashless payment platforms.

Governor of the State Bank of Vietnam Nguyen Thi Hong speaks at the event - Photo: VGP/Nhat Bac

The value of non-cash payments is 25 times GDP.

According to reports and opinions at the event, in recent times, the State Bank has had a deep awareness and directed the digital transformation work to convert most state management activities and credit services to the digital environment, increasingly better serving people and businesses and promoting the country's socio-economic development.

Banking databases have been deployed synchronously and effectively, connected and shared with many national and specialized databases, such as the credit database, storing information of 54 million borrowers; the anti-money laundering database storing information of 36 million customers, 154 million accounts and 1.3 billion transactions; connecting, interoperating and sharing data with the National Public Service Portal, many national databases and especially with the national population database.

To date, 57 million loan customer profiles have had their data compared; 113 million individual customer profiles and 711,000 corporate customers have had their biometric information compared. Promoting integration, connection, and data sharing for online payment of fees, charges, taxes, hospital fees, tuition, transportation, gasoline, purchase and sale of goods and services... associated with electronic invoice issuance, contributing to promoting e-commerce growth of 20%/year.

Non-cash payment activities have been widely deployed and have made remarkable progress. The rate of adults with payment accounts has reached 87%, exceeding the target of 80% by 2025. The value of non-cash payments in 2024 will reach over VND 295 million billion, 25 times higher than GDP. About 80% of pensioners, social insurance and unemployment benefits in urban areas are paid through accounts. Payment infrastructure is maintained continuously, smoothly and safely, without incidents or congestion; cross-border retail payment connections are deployed with Thailand, Cambodia, Laos (currently deployed with China and South Korea).

Prime Minister visits HDBank's digital transformation exhibition booth - Photo: VGP/Nhat Bac

The industry has deployed digital utilities and practical technology solutions for people and supported businesses, such as opening online accounts, deploying digital signatures on the VNeID platform; cross-border payments using QR quick response codes; applying modern technology in payments (facial biometrics; one-touch payment, QR codes, etc.); appraising customer profiles to decide on disbursement of loans to individuals and businesses throughout the digital channel; applying AI in business operations, optimizing processes, automating, supporting decision-making, and shortening processing time.

According to Governor of the State Bank of Vietnam Nguyen Thi Hong, if digital transformation is a journey, data is the heart - the lifeblood that drives the entire process. Recognizing the core role of data, the banking industry has constantly innovated and upgraded its centralized data infrastructure to connect with other industries and fields, gradually building a smart and sustainable digital ecosystem. This journey has been shaped through important milestones, each year is a mark affirming the industry's pioneering and strong commitment to digital transformation. Digital transformation of the banking industry has gone through proud stages.

Prime Minister visits LPBank's digital transformation exhibition booth - Photo: VGP/Nhat Bac

In addition to the achieved results, reports and opinions also pointed out the shortcomings, limitations, difficulties and challenges in digital banking transformation, such as the legal corridor has not kept up with the speed of technological development; the development of digital infrastructure, digital platforms and pillar technologies has not kept up with actual needs; there is a shortage of high-quality human resources; the work of ensuring security, safety and information security still has many challenges (cyber attacks, loss of money in customer accounts and online fraud...); and a number of other difficulties and challenges that need to be addressed in the coming time, such as improving the capacity for innovation and product development, building and developing digital ecosystems, changing user habits and building digital trust, innovating thinking and promoting corporate culture...

On this occasion, the State Bank announced a VND500,000 billion credit program (with 21 commercial banks registered to participate) to lend to strategic infrastructure projects (such as transportation, electricity, digital infrastructure, etc.) with preferential interest rates (reduced by 1% or more compared to medium and long-term loan interest rates).

Prime Minister visits KienLongBank's digital transformation exhibition booth - Photo: VGP/Nhat Bac

Urgently implement the Controlled Testing Mechanism

Speaking at the event, Prime Minister Pham Minh Chinh highly appreciated the experience and atmosphere of digital transformation at the event; the reports and speeches showed the high determination and active participation of banks, especially commercial banks, with the spirit of taking people and businesses as the center and the subject in digital transformation. The exhibition booths showed the clear progress, growth and development of banks in digital transformation.

Emphasizing that "everyone has to use money", the Prime Minister said that the goal of digital transformation is to help connect and make transactions more and more convenient between commercial banks with people, businesses and the state, contributing to the country's rapid and sustainable development, contributing to the development of the digital economy, digital government, digital society, digital citizens; contributing to stabilizing the macro economy, controlling inflation, ensuring major balances of the economy, through reducing banking costs, reducing costs for people and businesses; reducing time, reducing costs, reducing hassles, preventing corruption and negativity by reducing direct contact between people.

Prime Minister visits C06's digital transformation exhibition booth - Photo: VGP/Nhat Bac

The Prime Minister pointed out that the viewpoint of digital transformation of banks must "stick to the guidelines, act decisively, improve efficiency"; "seize opportunities, take the lead in technology, promote development"; "pioneer in technology, take the lead in innovation"; "diverse products, professional services, security"; "for the benefit of the people and the development of businesses"; "public, transparent, prevent corruption, waste, and negativity".

The goal of digital transformation of banks is to accelerate, make breakthroughs, and reach the finish line sooner than expected, with "5 accelerations and breakthroughs": Accelerating and making breakthroughs in institutional improvement; accelerating and making breakthroughs in digital infrastructure development; accelerating and making breakthroughs in digital transformation for people and businesses, especially ensuring equitable access to remote, border, island areas and disadvantaged people; accelerating and making breakthroughs in developing human resources for digital transformation; accelerating and making breakthroughs in ensuring security and safety in digital transformation.

VPBank representative presents digital transformation solution - Photo: VGP/Nhat Bac

Regarding specific tasks, the Prime Minister pointed out 6 key tasks and solutions in the coming time.

Firstly, perfecting the legal system and mechanisms and policies in line with reality. Urgently organize the implementation of the Controlled Testing Mechanism in the banking sector; promptly submit to the Government for promulgation of the Decree on Mobile Money... Review legal regulations to promulgate, amend and supplement to ensure consistency and compliance with the provisions of the Laws: Credit Institutions, Data, Electronic Transactions... and the practical operation and banking operations on digital platforms.

Second, develop digital infrastructure, modern digital platforms, ensure system security and safety, and have high interoperability.

Accelerate upgrading and developing payment infrastructure to ensure continuous, smooth, and safe operations, meeting the diverse and rapidly increasing payment needs of people and businesses. Ensure radio and electricity. Promote the application of key technologies such as artificial intelligence (AI), big data, cloud computing, and blockchain in banking operations.

Modernize the core banking system in a flexible and easy-to-integrate direction. Invest heavily in cybersecurity, data security, build a cybersecurity monitoring center and effective incident response capacity. Build a database; promote secure data connection and sharing to develop a financial services ecosystem.

Third, develop diverse, convenient and personalized digital banking products and services: Comprehensively digitize traditional banking processes and products; develop new and innovative digital financial products and services to meet the increasingly high and diverse needs of customers; expand access to financial services for disadvantaged groups, remote areas, border areas and islands.

Techcombank representative presents digital transformation solution - Photo: VGP/Nhat Bac

Fourth, developing digital data, combined with Project 06, creates momentum to promote digital transformation in the banking industry.

Closely coordinate with the Ministry of Public Security to effectively implement Project 06, focusing on providing banking services and utilities to people and businesses through the VNeID platform. Promote connection and data sharing between national and specialized databases and the National Public Service Portal, promote fast, convenient and safe online payments.

Promote the implementation of online public services in the banking sector, striving to complete the upgrade of 100% of eligible administrative procedures to full online public services by 2025. Continue to promote the provision, improve the quality and efficiency of online service provision, associated with the arrangement of administrative units, and avoid work congestion.

Fifth, prioritize human resource development to meet the transformation requirements of the banking industry. Diversify training forms and levels; vigorously implement the Digital Literacy Movement.

Sixth, promote widespread propaganda about the benefits of digital transformation in the banking sector to every citizen and business ; help people understand the benefits and effectiveness; at the same time, provide guidance to improve financial and technological knowledge for people and businesses to limit the risk of criminals taking advantage of banking services for fraud and scam purposes.

Photo: VGP/Nhat Bac

I hope the banking industry will 'open up a little more'

The Prime Minister highly appreciated the preparation and announcement of the VND500,000 billion credit program to support businesses and people in implementing science, technology, innovation, digital transformation and strategic infrastructure projects.

Emphasizing that this program contributes to the implementation of Resolution 57 of the Politburo, is the "heart" of the banking industry, a great effort of the State Bank and the contribution of commercial banks, but the Prime Minister hopes that banks will continue to reduce costs and "open up a little more" so that the interest rate of this program is at least 1.5% lower than medium and long-term interest rates.

The Prime Minister requested the State Bank and banks to urgently organize the implementation of the 500,000 billion VND credit program with the spirit of "what is said must be done, what is committed must be done, what is done must be done, what is done must produce specific products, measurable results", "tell the truth, do the truth, real results, people enjoy real results".

The Prime Minister noted that it is necessary to have appropriate management methods, design regulations with "output" and implement, most importantly, encourage people and businesses to borrow capital from this program, bring the program into life, capital is put into the economy, banks together with people and businesses promote "national love, compatriotism", work together, win together, enjoy the results together, share joy, happiness and pride.

The Prime Minister wished the banking industry to continue to accelerate digital transformation, make breakthroughs, reach the finish line sooner, affirm the industry's pioneering role in digital transformation and set an example for other industries - Photo: VGP/Nhat Bac

The Prime Minister also expressed concern that for small, medium and micro enterprises and 5 million existing business households, agencies need to study and calculate appropriate support such as support through public-private partnership, to use electronic invoices generated from cash registers. This will promote digital transformation, help businesses and business households develop and contribute fairly to the budget, prevent tax losses, especially in the field of food and beverage business, services...

Emphasizing once again that digital transformation of banking has been and is on the right track, the more you do it, the more experienced and mature you become. The Prime Minister wished the banking industry to continue to accelerate digital transformation, make breakthroughs, reach the finish line sooner, affirm the industry's pioneering role in digital transformation and set an example for other industries.

Ha Van

Source: https://baochinhphu.vn/thu-tuong-nganh-ngan-hang-phai-tang-toc-but-pha-chuyen-doi-so-de-ve-dich-som-hon-du-kien-102250529141114564.htm