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Summary

23 COVER STORY 6 ECONOMY - POLICY
REMOVING BARRIERS FOR TARGETS AND

OPEN BANKING TO DEVELOP GOALS TO BE MET

O pen Banking is a new trend in the banking and finance IN 2024
industry, and if successfully implemented in Vietnam
will promote the strong development of financial and
non-financial services, with many utilities being available to
customers. The process also indirectly promotes digital
transformation in the banking industry, which is the lifeblood
of the economy. It is also among the important pillars of the
National Digital Transformation Strategy to 2025 with a vision hen chairing the regular government meeting for
to 2030, approved by the government. As a new trend, however, W November, after touching on difficulties, challenges,
the banking industry is still in the process of finding the best
and limitations that need to be overcome and
way to develop Open Banking. This requires cooperation from analyzing lessons learned from 2023, Prime Minister Pham
many ministries and sectors and especially market members, Minh Chinh directed ministries, branches, and localities to
who will directly participate and benefit from the model. carry out key tasks and solutions to create momentum for
meeting goals in 2024 and beyond. The Prime Minister
26 COVER STORY called for the continued prioritization of promoting growth
associated with maintaining macro-economic stability,
Challenges remain limiting controlling inflation, and ensuring major balances in the
economy. Special attention needs to be paid to boosting
development of Open Banking economic growth and reaching unmet targets from the 2023
plan. Prime Minister Chinh also emphasized three issues:
A breakthrough technology associated with Industry 4.0 strengthening regional, inter-regional, and national links;
focusing on developing emerging fields, promoting startups,
that allows the connection and sharing of data through
the open application programming interface (Open innovation, and science and technology; and consolidating
API) has been researched by many banks in Vietnam and and promoting traditional markets and identifying and
preparations are being made to apply it to payment activities exploiting new markets.
and provide innovative financial products and services,
welcoming in the Open Banking era. However, many believe
this is a new field in terms of both technical and legal factors ECONOMY - POLICY
not only in Vietnam but also in the world, so legal gaps and 10
issues regarding data management and security will pose
challenges as banks shift from closed to open measures and Vietnam - China
seize opportunities. It is necessary to continue to improve relations to see new developments
policy mechanisms and legal frameworks on information
security, customers’ personal data, and cashless payments.

PHOTO: REUTERS
C hina has long been Vietnam’s leading partner in
investment, trade, and tourism, with direct investment
from the country standing at $27.224 billion in 4,203
valid projects as of the end of November, ranking it third in
project numbers and sixth in registered capital. Trade
turnover between Vietnam and its northern neighbor is
rising continually and accounting for a larger proportion of
total trade. China is Vietnam’s second-largest export market
and the largest source of imports. Relations will see new
developments in the near future.

4 KINH TẾ VIỆT NAM | Số 50 | Ngày 11/12/2023 www.vneconomy.vn