Finance & Banking

Last updated: Wednesday, May 15, 2019


Boosting Digital Transformation in Financial Sector

Posted: Wednesday, October 10, 2018

The Ministry of Finance considers 2018 the first year to boost digital transformation in the financial sector in a long-run programme and a long-term goal.

This is also the main content of the 15th Vietnam Finance Exhibition held recently in Hanoi. The event was organised by the Department of Financial Informatics and Statistics, Institute of Strategy and Policy on Finance, Ministry of Finance and IDG Vietnam.

Digital economy - Vietnam cannot stay out of the trend
Regarding the current trend of digital economy, Deputy Minister of Information and Communications Nguyen Thanh Hung said that the world is entering Industry 4.0, the digital economy and Vietnam cannot stay out of the inevitable trend. Vietnam needs to have good preparation and active adaptation to the digital transformation process. This should be seen as quantitative development leading to a qualitative change, specifically in business that is a change in the business model, not just the promotion of production or expansion of the business.

According to Mr Nguyen Thanh Hung, in the current context, the financial and ICT sectors are considered to be the most readily available for digital transformation based on the huge volume of data created daily.
Microsoft Asia-Pacific, the representative of the global public sector, also said that Vietnam has quite a lot of advantages to implement digital finance with a fairly modern IT platform, large and abundant data storage. Particularly, the more important factor is that Vietnam clearly expresses its determination to participate in the 4th industrial revolution with many digital government directions aiming at digital economy.

In terms of the advantages and challenges of the 4.0 technology revolution, Deputy Minister of Finance Vu Thi Mai emphasised that Industry 4.0 is bringing many opportunities and challenges to many countries, especially for developing countries like Vietnam. However, besides the opportunities, Vietnam will face many difficulties in applying digital technology, smart technology and new production and business methods to promote economic development.

Along the line of view, many delegates said that is not easy to successfully make a digital transformation in finance sector. In fact, despite efforts to apply many new technologies, the IT foundation of Vietnam's financial sector still has not caught up with many developed countries in the region and in the world. The connection and automation of business processes of Customs, Taxation and Treasury departments are not consistent with the world standards and systems, which inadvertently creates barriers to development.

A modern digital finance platform will be basically established by 2025
Ministry of Finance said the goal of 2025 is completing the construction of electronic finance and fundamentally setting up digital modern, sustainable, open and transparent financial platform based on large data, open financial data and the digital financial ecosystem. Previously, on May 4, 2017, the Prime Minister issued Directive 16/CT-TTg on enhancing the capacity of approaching Industry 4.0 to accelerate the development of IT infrastructure, boosting a creative start-up ecosystem and human resource training, aiming at developing a digital economy. Accordingly, the finance sector must become the pioneer in the digital transformation to increase financial management capacity and create the foundation for other industries to move fast.

In fact, in the first half of 2018, the Ministry of Finance had implemented many solutions to organise the application of IT in the whole financial sector in order to reach the 4th Industrial Revolution fastest such as: Applying server virtualisation technology to optimise the hardware investment efficiency; deployment of large data analysis technology; initial application of social networking technology, mobile technology in the provision of online public services, electronic taxation system, e-customs, automatic customs management system at seaports, national single window customs system in ASEAN. The finance sector has initially approached the first phase of digital government development, that is establishing the e-Government and e-Finance.

Also with those efforts, in July 2018, the Ministry of Information and Communications announced that the Ministry of Finance ranked first in the application of IT, e-government development.

At the end of August, the Ministry of Finance was also ranked at the first place for the sixth time in Vietnam ICT Index 2018. This result recorded the efforts of the finance sector to promote IT application in digital transformation. However, successful digital transformation is not easy. Therefore, Vietnam should issue synchronously the mechanisms and policies for development of branches and fields related to Industry 4.0; at the same time, Vietnam needs to enhance the application of scientific and technological advances for the development of production and business, contributing to boosting economic growth.

Thu Ha

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