ADB, Switzerland aid fintech development in Vietnam
The Asian Development Bank (ADB) and the State Bank of Vietnam (SBV) on October 25 held a kick-off ceremony marking the implementation of the Swiss-funded US$5 million technical assistance, which aims to nurture financial technologies (fintech) serving the improvement of financial inclusion in Vietnam.
This funding, along with a US$2 million contribution from the Japan Fund for Prosperous and Resilient Asia and the Pacific (JFPR), financed by the Government of Japan, will support the expansion of inclusive and climate finance in the country.
The technical assistance is crucial in helping advance the access to finance of small- and medium-sized enterprises (SMEs) and women-owned and women-led SMEs (WSMEs) in particular via supporting the SBV in developing and implementing the regulatory framework for strengthening the digital finance sector, ensuring safe market conduct and a thriving ecosystem.
The assistance contemplates training opportunities on fintech and green banking best practices for SBV staff, targeting 25% female participation and consulting services to WSMEs on preparing green loan applications. Additionally, it will build the capacity for relevant government ministries and members of fintech and banking associations and assist selected commercial banks in developing digital banking.
At the ceremony, SBV Deputy Governor Pham Tien Dung said the central bank highly values the technical assistance project, considering it an important support in building a favorable environment for fintech development. This, in turn, will help improve the quality and diversification of fintech services and products, contributing to boosting the national financial inclusion.
ADB Country Director for Vietnam Shantanu Chakraborty said following earlier fruitful collaboration with the SBV, the ADB is excited to join efforts in further fostering the digital banking transformation in Vietnam’s fast-growing market.
This technical-assistance programme further expands Switzerland’s comprehensive supports to strengthen Vietnam’s financial sector. Through fostering Vietnam’s fintech industry and digitalisation of the banking sector, the programme offers new opportunities for SMEs to improve their access to financing, said Swiss State Secretary for Economic Affairs Dominique Paravicini.
