Some proposals

The strong development of FinTech will bring about many services that contribute to changing
the face of the financial and banking sector, making important contributions to economic and
social development. However, the legal framework for FinTech in Vietnam only meets the
requirements in the payment sector, while other segments of FinTech have not been properly
regulated. FinTech is constantly evolving and innovative, so establishing legal regulations often
lags market operations. Additionally, FinTech operates on a technology platform and therefore
always faces high risks. Therefore, to promote the development of FinTech and contribute to
economic and social development, attention should be paid to the following:

First, promptly establish a legal framework to regulate the development of different segments of
FinTech. Research and evaluation should be conducted on the opportunities and challenges that
the FinTech sector brings, as well as the construction of an effective FinTech ecosystem. At the
same time, regulatory agencies should develop programs and activities to help start-ups and
financial institutions proactively understand FinTech, assess the effectiveness of the technologies
FinTech implements and help financial institutions choose the most effective development
direction. In addition, there should be policies to exempt or reduce taxes, support access to
funding sources, and create an investment-friendly environment for Fintech startups.

Second, develop FinTech policies in conjunction with developing the financial and banking
system and the economy. Consider the development of FinTech as closely linked to the
application of science and technology in the financial and banking sector, as a part of the
financial and banking industry, under the management of the specific sector. Based on that,
enhances cooperation among parties involved in providing FinTech products, creating conditions
for the development of FinTech in Vietnam in the future.

Third, promote research and application of blockchain technology, distributed ledger technology,
etc., to quickly apply them in the financial and banking sector and other sectors, as the benefits
of these technologies are significant. Alongside the technological aspect, it is necessary to
improve the level of human resources to grasp and manage FinTech. There should be
mechanisms to encourage training and attract high-quality human resources for the development
of FinTech. At the same time, take advantage of technical support and advice from international
organizations such as ADB, and WBG, and engage in bilateral cooperation with regulatory
agencies of other countries to exchange and share useful experiences in managing FinTech
companies.

Fourth, diversify products and promote financial knowledge about FinTech to consumers.
Building on the development of FinTech products (mainly in payment and money transfer), it is
necessary to expand other potential products such as financial management, lending, savings,
etc., to meet the diverse needs of customers. Additionally, actively promote and disseminate
knowledge about FinTech to the general public, as well as equip them with the necessary
information to mitigate risks in FinTech transactions, thereby helping them recognize the
benefits that FinTech technology brings.

In summary, FinTech is a new field with strong growth potential in the future due to the demand
for financial inclusion in every country. The explosion of FinTech has attracted significant
attention from financial institutions and regulatory bodies worldwide, and Vietnam is also part of
this trend. With its outstanding features, FinTech will be an effective tool to help our country
move towards the goal of providing comprehensive financial services to the people and
contributing to nation-building.