Finance industry boasts a distinguished past, poised for expansion in unison with the nation

Vietnam's Finance Sector Drives Robust Economic Growth and Stability

Vietnam's finance sector has played a significant role in the country's robust economic development from 2021 to 2025. The sector's key strategies and achievements include fiscal policy reforms, institutional framework improvements, capital markets advancements, and social security policy enhancements.

Fiscal Policy and Economic Growth

Vietnam aimed for an average economic growth rate of about 6.3% annually during 2021-2025, with GDP per capita reaching around $5,000 by 2025, positioning it as an upper-middle-income country. The fiscal policy was reformed to promote growth while ensuring macroeconomic stability, inflation control, and effective allocation of resources for development. State budget revenue rose to approximately VND 2 quadrillion ($80 billion), with development investment spending increasing to roughly 32% of the budget, financing major infrastructure projects such as 3,000 km of expressways and 1,700 km of coastal roads. The budget deficit was maintained around 3.3-3.4% of GDP, and public debt at about 37% of GDP, preserving national financial safety and supporting stable credit ratings.

Institutional Framework and Financial Sector Reforms

The government implemented comprehensive reforms in the banking and financial sector, including the Scheme on Cashless Payment Promotion and the Digital Transformation Plan. The State Bank of Vietnam (SBV) actively restructured credit institutions to resolve non-performing loans, strengthen system resilience, and improve credit ratings. Efforts emphasized anti-money laundering, combating terrorist financing, and minimizing administrative procedures to create a favorable business environment. The banking sector also pursued development strategies and financial inclusion initiatives to broaden access to finance by 2025 and beyond.

Capital Markets and Fund Industry Development

The finance sector advanced capital market infrastructure, aiming to upgrade the stock market to attract more domestic and foreign capital. Despite only about 423,000 retail investors holding open-end fund certificates compared to over 9 million active securities accounts, the fund industry is recognized as a crucial capital mobilization channel to support infrastructure and business production. Strategies focused on expanding distribution infrastructure, allowing banks to distribute fund certificates, and professionalizing investment fund management to increase investor returns and reduce banking system pressure, given the high credit-to-GDP ratio (~134%).

Social Security and Welfare Policies

While not explicitly detailed in the search results, the sector’s fiscal reforms contributing to raising people's living standards and macroeconomic stability indirectly support social security policies by enabling sustainable public financing and social investments.

Ambitious National Development Vision

The government’s strategic vision aims to reduce vulnerability to external shocks by stimulating domestic demand via massive infrastructure spending. This is part of a broader ambition to emulate the economic success of South Korea and Taiwan, lifting millions out of poverty and transforming Vietnam into a high-income economy by 2045. The period 2021-2025 marks a “new era of development” with ambitious targets such as 8%-plus GDP growth in 2025, making Vietnam a rising economy in Asia.

Milestones in Vietnam's Finance Sector Development

The first milestone involved shifting from a centrally planned mindset to an open, integrated, and socialist-oriented market economy, focusing on science, technology, innovation, and digital transformation. The target for health insurance coverage is 95% by the end of 2025.

During crises such as the pandemic, fiscal policy played a critical supportive role, waiving, reducing, or deferring around VND1.1 quadrillion ($44 billion) in taxes, fees, and land use charges to support citizens and businesses. The bond market size in Vietnam is about 32.8% of GDP. Vietnam plans to pilot more than one crypto exchange, with the Ministry of Finance finalising a draft scheme for a regulated crypto asset trading market. The finance sector effectively managed state reserves and provided essential goods to people affected by natural disasters and epidemics.

Party General Secretary To Lam presented the First-Class Independence Order to the Ministry of Finance (MoF), recognizing the sector's significant contributions throughout Vietnam's 80 years of development. The Vietnamese stock market celebrated its 25th anniversary on July 28 in Ho Chi Minh City and launched a new IT system. The finance sector has researched, drafted, and submitted numerous important laws to the government and National Assembly, creating a transparent, open, and favorable business environment. The finance sector will coordinate with ministries, sectors, and localities to effectively implement five key groups of tasks and solutions for economic development. Health insurance covered 95.5 million people (94.3% of the population) in 2024. The finance sector has been vital channels for investment and capital mobilization for businesses and the economy.

Finance industry boasts a distinguished past, poised for expansion in unison with the nation