Developing Inclusive Finance in Vietnam

Abstract

Inclusive financial development has been identified by countries, including Vietnam, as one of the important measures to promote and support individuals and small businesses to borrow capital to develop production, business and consumption, serving the economic and social development of the country and locality. In this study, the author discusses the content of inclusive financial development and two basic factors affecting inclusive financial development, including traditional finance and digital finance. Based on the theoretical framework developed, the author conducted a survey of 400 managers of 200 financial institutions operating in a number of rural areas of Vietnam, including Hoa Binh province (North), Nghe An province (Central), and Bac Lieu province (South). The research results show that inclusive financial development is attracting the participation of a large number of rural people through traditional and digital financial channels; Increasing the level of use of these services not only contributes to increasing accessibility but also promotes the participation of different target groups in rural areas, including adults, women and the poor in the formal financial system. From the results of that study, the author discusses some solutions for sustainable financial inclusion development in Vietnam.