Persisting Financial Disproportion Needs Addressing
In the realm of personal finance in Vietnam, change is on the horizon. Dr. Le Minh Nghia, Chairman of the Vietnam Financial and Capital Association (VFCA), has highlighted the neglected state of personal finance, stating that it directly impacts every citizen.
According to Ngo Thanh Huan, advisors need to move away from a sales-driven mindset and adopt a fiduciary standard, prioritising clients' interests above all. This shift is crucial, as most clients are currently advised primarily to make purchasing easier rather than to identify their actual needs.
The financial sector in Vietnam is dominated by several key players, including state banks, private banks, international banks, and financial service providers. However, no single entity can claim to meet more than half of the country's capital needs. This fact was reiterated by the State Bank of Vietnam (SBV) and international reports, such as those from the World Bank and IFC.
Ngo Thanh Huan also emphasises the need for professional standards and licensing systems for advisors, alongside multidisciplinary training. Advisors should expand their knowledge to cover investment, taxation, inheritance, retirement, and provide comprehensive long-term support.
The development of personal financial consultancy is seen as an essential factor to strengthen capital markets and support the growth of individual investors. The challenge, however, is to make the stock market a genuine source of funding for production and business.
Insurance premium revenues currently account for 2.3% of GDP, lower than the ASEAN average of 3.5%. Private enterprises contribute only around 10% of registered capital in practice. The banking system accounts for about 66% of total financial assets, with deposits from individuals in banks reaching around $580 billion, while outstanding loans stand at about $696 billion.
The growth of the financial system in Vietnam has been steady, with an average annual rate of 16% between 2011 and 2024. The total assets of the financial system now exceed $1.2 trillion, equivalent to 265% of GDP.
Ngo Thanh Huan proposes a financial planning group model, comprising holistic financial planners, specialized product advisors, and financial institutions. This model aims to provide a more comprehensive approach to financial advice, ensuring that clients' needs are met in a way that benefits them in the long term.
Despite these advancements, financial education for individuals remains inadequate, particularly in the context of AI and digital transformation. The rise of black credit, caused by the uneven development of the financial system, is a concern that needs to be addressed.
As of 2025, there are no officially confirmed data suggesting that any bank or financial service provider in Vietnam has supplied more than half of the total capital requirements of the economy. The financial sector in Vietnam is decentralised and competitive, with financing of the economy being provided by a multitude of institutions, including banks, financial service providers, and increasingly, alternative financing sources such as capital markets and fintechs.
For more specific data on individual banks, market shares, or certain financing forms (business loans, consumer loans, investment financing, etc.), please feel free to ask for more detailed information!
