Experts have called on the government to implement better policies and
apply new technologies to shore up the nation’s financial system.
Speaking at the 10th Annual Vietnam Finance Conference themed
“Reinforcing national financial supervision: Policy and technology
initiatives” in Hanoi on August 27, finance experts said that a
stronger legal framework and more advanced technology will boost
economic growth.
Deputy Chairman of the National
Financial Supervisory Commission (NFSC) Ha Huy Tuan said the financial
market is undergoing rapid and turbulent development with many risks
threatening market stability.
In spite of such trends,
financial supervision in Vietnam remains limited, particularly at
the macro-level. Inadequate supervision of the financial system drew
national attention during the global financial crisis in 2008 and was
scheduled for improvement to safeguard the nation’s financial sector.
Deputy Director of the Central Institute of Economic Management Tran
Kim Chung said there is a lack of coordination and overlap between
finance agencies, including the Ministry of Finance, the State Bank of
Vietnam , NFSC and deposit insurance agencies.
Database systems and information technology (IT) were also said to be
inadequate in all three sectors of the financial system – banking,
securities and insurance – causing difficulties for supervision, he
said.
He noted that supervision is lagging behind
market development due to a lack of human and technical resources, and
finance capabilities, adding that risk-based tools and improved
coordination between relevant organisations will improve supervision.
According to Pham Cong Minh, Deputy Director of the Department of
Financial Informatics and Statistics, improving financial supervision
will involve greater monitoring of financial markets.
He said database and software will help improve supervision, urging the
establishment of a “Data Centre” to manage relevant market information.
He also stressed that the collection and monitoring of relevant data will provide early warnings for a future crisis.
According to the Director of the Department of Technology, Doan Thanh
Tung, the application of IT and disclosure of stock market information
have provided greater transparency for investors and enabled forecasts
for market activities.
Experts at the conference
highlighted that new IT solutions are consistent with the country’s
plans to deploy an e-Government service nationwide.
New technologies aimed at improving tax and financial services were also on display at the conference.-VNA