Promoting Vietnam-UK cooperation in developing modern financial services

On November 7, in Hanoi, the UK-Vietnam Financial Services Summit took place, marking an important step forward in bilateral cooperation between the two countries, as well as demonstrating the common determination to promote comprehensive development of the financial services sector, opening up many opportunities for connection and experience sharing.

The conference was attended by British Ambassador to Vietnam Ian Frew; Dr. Nguyen Quoc Hung, Vice President and General Secretary of the Vietnam Banks Association (VNBA); Ms. Vu Minh Chau, Acting Director of the Department of International Cooperation, State Bank of Vietnam; Dr. Can Van Luc, Chief Economist of BIDV; Ms. Srividya Subramania, Global Head of Sales & Origination, META & Asia- Pacific region of Traydstream; Mr. Sylvester Kinuthia, Head of Transaction Banking from Standard Chartered Vietnam; and many businesses from the UK and Vietnam.

Making Vietnam an international financial center

In his welcome speech, British Ambassador to Vietnam Ian Frew recalled General Secretary To Lam's historic visit to London from October 28-20; at the same time, he expressed his hope for the comprehensive strategic partnership between the two countries, as well as pledged to unite and help Vietnam overcome the consequences of past and future natural disasters, especially in the economic field.

The Ambassador affirmed that the UK will join hands and share valuable experiences in the field of global finance, especially in financial technology, regulatory reform and green finance; thereby, helping Vietnam achieve the goal of turning the country into an international financial center with the model of "one center, two destinations".

“Vietnam's financial center will certainly have its own unique identity, but it still needs to be closely connected with international partners, including the UK,” Ambassador Ian Frew said.

British Ambassador to Vietnam Ian Frew affirmed that he will fully support Vietnam in its goal of becoming an international financial center in the future (Photo: Doan Ngan)

Responding to a question about the areas that Vietnam needs to focus on to achieve the basic goal of becoming a regional financial center, Ambassador Frew emphasized that upgrading bilateral relations to a Comprehensive Strategic Partnership has put cooperation in the field of financial services at the center.

The experience of the London Financial Centre will play a key role in supporting Vietnam in perfecting the legal framework, building market infrastructure, and developing high-quality human resources for the international financial centre.

In addition, the two countries are also implementing key cooperation through the Trade Finance Registration System to address the $19 billion capital gap and support small and medium-sized enterprises, while the UK wants to share experiences in open banking, AI and financial innovation to shape the future of Vietnam's financial centers.

In addition, Vietnam and the UK signed a Memorandum of Understanding on cooperation against financial fraud and money laundering to strengthen digital integrity and ensure trust in digitalization.

Speaking at the Conference, Dr. Nguyen Quoc Hung, Vice Chairman and General Secretary of VNBA, praised the strong development of Vietnam's financial system, with impressive figures such as: Modern lending system with more than 90 customer transactions; e-wallet ecosystem with more than 40 million users; digital transaction ratio accounting for over 70% of total retail units in many credit institutions; reduced operating costs by 20-30% compared to traditional channels; non-cash payment transactions increased by more than 40%....

Those results are becoming an important foundation to create a strong stepping stone for digital financial inclusion in Vietnam in the period 2025 - 2030.

Dr. Nguyen Quoc Hung, Vice President and General Secretary of VNBA, highly appreciated the achievements that the Vietnamese financial system has achieved in recent times. (Photo: Doan Ngan)

However, the country's economy is inevitably facing many challenges in terms of legal and financial framework, increasing customer demand, consumer management and protection, and inadequate data. However, under the direction of the Government and the State Bank, along with the achievements that have been achieved, from now until 2023, Vietnamese commercial banks will organize the widespread digitalization of commercial financial services in the country.

Finally, Dr. Nguyen Quoc Hung believes that: “With the accompaniment and technical support of the British government, along with the determination of the management agency, Vietnamese credit institutions and enterprises will be able to establish a new standard of financial transparency and trade finance in the region. Therefore, making further breakthroughs in financial development, promoting inclusive and sustainable growth”.

Building a transparent and deeply integrated financial system

Ms. Vu Minh Chau, Acting Director of the Department of International Cooperation, State Bank of Vietnam, said that since 2008, Vietnam and the UK have established many bilateral cooperation programs, in which topics related to digital banking and innovation are key focuses.

In recent years, UK financial institutions and companies have actively supported Vietnam in developing a transparent and modern financial system, aiming at comprehensive development, ensuring that all people, especially vulnerable groups, can access effective and safe financial services.

Ms. Vu Minh Chau, Acting Director of the Department of International Cooperation, State Bank of Vietnam, pledged to develop a transparent, modern financial system with deep international integration (Photo: Doan Ngan)

Vietnam is recording positive signs of development such as open banking, e-payments and e-commerce. AI is also being strongly applied in data analysis, fraud detection to improve customer experience.

She emphasized that with the support of British partners, Vietnam has built a trade finance registration platform. This is a big step forward in connecting finance and technology, contributing to improving transparency and simplifying the trade finance process.

In addition, VNBA also pledged to protect the national financial system, promote the implementation of many initiatives to promote digital transformation and international integration in the context of the recent joint statement on cybercrime prevention.

“Digital transformation will certainly continue to bring many changes and challenges, requiring units in the financial system and businesses to continuously innovate, update technology and invest heavily to improve competitiveness. Vietnam is building specific mechanisms to promote this process, while affirming its position in the international financial system,” the Acting Director shared.

Overview of the Conference. (Photo: Doan Ngan)

Vietnam enters Big Reform for comprehensive breakthrough

Speaking at the UK-Vietnam Financial Services Summit, Dr. Can Van Luc, Chief Economist of BIDV, said that Vietnam is facing a pivotal moment, when Big Reform - the second major reform after Doi Moi - will be the key driving force to help the economy break through in the digital age and global integration.

He emphasized: “2026 will be the pivotal year of Big Reform, the time when new policies are implemented and create momentum for the 2026-2030 period”. Big Reform will focus on seven key areas including: science - technology and digital transformation, international integration, institutions, private - state - FDI sector, energy, education and health.

Dr. Can Van Luc also forecasts three growth scenarios including: (i) Basic growth of 6.5-7%, (ii) Positive growth of 8%, (iii) Breakthrough growth of 10% if reforms are synchronous.

Dr. Can Van Luc emphasized, "Vietnam is facing a pivotal moment." (Photo: Doan Ngan)

One of the hallmarks of Big Reform will be the construction of an international financial center following the “one center, two locations” model, with Ho Chi Minh City as the focus for developing traditional financial services; while Da Nang plays the role of a new, unique institutional and policy center.

“Big Reform is not only about institutional reform, but also about repositioning Vietnam’s entire development model in the digital age. If we take advantage of the opportunity, we can absolutely make a breakthrough and become a financial and innovation center of the region,” Dr. Can Van Luc affirmed.

Source: https://baoquocte.vn/thuc-day-quan-he-hop-tac-viet-nam-anh-trong-phat-trien-dich-vu-tai-chinh-hien-dai-333672.html