Responsible Finance in Vietnam

This report describes the state of financial inclusion in Vietnam and the existing financial consumer protection (FCP), regulatory, and supervisory framework for low-income clients. It also analyzes the role of industry self-regulation bodies in promoting responsible finance, as well as the extent of implementation of consumer protection principles by financial services providers. The report focuses on two of the three pillars of responsible finance: consumer protection, regulation and supervision, and industry standards and codes of conduct. It covers the following sections in detail:

• Definition of responsible finance, its key dimensions, and need;
• Demand and supply of financial services for low-income clients and microenterprises in Vietnam;
• Regulatory and supervisory framework for FCP;
• Self-regulation and industry codes of conducts with a focus on role of industry associations, endorsement of responsible finance campaigns, and the role of international donors and investors;
• Analysis of providers’ practices with a discussion on appropriate product design, prevention of over-indebtedness, transparency, responsible pricing, privacy of client data, treatment of clients, and mechanism for complaint resolution;
• Recommendations for regulators, supervisors, and providers of financial services on improving responsible finance in Vietnam.