Vietnam approves banking modernization and credit reform scheme

The Vietnamese government has approved a comprehensive scheme to modernize the national banking system and address weak credit institutions. Signed by Deputy Prime Minister Nguyen Van Thang, the plan aims to transform the State Bank of Vietnam into a modern central bank operating on advanced governance and digital data platforms by 2030.

A primary objective of the initiative is to end the practice of concentrated lending to ‘backyard’ corporate groups, thereby increasing transparency in capital flows. The scheme focuses on improving access to capital for small and medium-sized enterprises (SMEs) to support economic growth targets.

The plan outlines four key task groups: general solutions, banking system modernization, the handling of weak credit institutions, and enhancing capital access for businesses. Regarding weak institutions, the government intends to implement restructuring or resolution plans by 2030, emphasizing that banking safety and stability must be maintained under state control to prevent systemic collapses.