Expanding Inclusive and Climate Finance

Viet Nam has taken important steps to strengthen the finance sector and begin to integrate technology into the system through the adoption of a National Strategy for Development of the Digital Economy, National Financial Inclusion Strategy, Plan for Digital Transformation of Banking Sector by 2025 with Orientations Towards 2030. The COVID-19 pandemic and the restrictions on physical movements led to a spike in digital financial transactions. However, it has also exposed some weaknesses related to the development of digital finance in the country. To further develop the overall digital transformation of the finance sector, support is needed to address the following key barriers: (i) underdeveloped regulatory framework, (ii) outdated financial infrastructure, (iii) limited collaboration among market players, and (iv) limited capacity and knowledge among key stakeholders The proposed project aims to spur the growth of digital banking and innovative financial services in order to increase overall access overall to finance, especially by SMEs and through the use of fintech. The TA will have the following objectives: (i) policy and regulatory foundations for fintech strengthened and (ii) capacity for digital finance developed.