REVIEW
of
FINANCE -
Jan. 2018
25
capital is thereby needed in order to implement
the restructuring, of which credit is particularly
important to facilitate access to financial resource
to people. The task of restructuring the agricultural
sector in the context of international integration
and global climate change currently requires the
development of more robust and more integrated
credit and financial services to meet the demand
of huge amount of capital for the development of
agriculture and rural areas.
In order to continue to promote financial
inclusion, expand access to financial services,
especially for agriculture - rural areas, micro,
small and medium enterprises, households,
some priority solutions in the coming time are
recommended as follow.
Firstly,
enhancing access to finance through
diverse, quality and accessible financial products
for all, especially for those who live in rural areas.
Secondly,
developing a stable financial
infrastructure, expanding network, credit
services and payment with a reasonable,
convenient and safe utility; adopting high-end
technology to enhance payment systems and
connectivity between banks and digital financial
products; developing and connecting with
global financial data systems; strengthening
the forecast and monitor capabilities as well as
designing strategically-targeted microfinance
programs.
Thirdly,
strengthening measures to protect
consumers; disseminating of financial products;
improving financial literacy and financial skills,
especially people in rural agriculture.
Financial inclusion is such an important policy
of the Government to promote the potential
growth of the economy which is still challenged
by access to capital and financial services. The
implementation of the above guidelines would
be an essential contribution to achieve the goal of
sustainable development and social security by
the Central Party and Government.
References:
1. ASEAN’s 2025 Vision for Financial Integration (2015);
2. Ministry of Finance (2017), State Budget Law;
3. Ministry of Finance (2017), the Law on Corporate income tax;
4. Goverment (2017), Agricultural land use tax Law and non-agricultural
land use tax law (2010).
Secondly,
develop the financial strategy to
deal with natural disasters; improve the legal
framework and guidelines to facilitate the
implementation of policies with regard to disaster
risk management.
Thirdly,
utilize the diversification of financial
resources to improve disaster risk management.
At the same time, priorities should be targeted
to the use of financial resources for each type of
disaster risk.
Fourthly,
develop the insurance market for
natural disaster risk so as to create an active
financial source, resulting in the reduction of
the expenditure burden for the state budget and
transferring the risk to the market.
Fifthly,
strengthen cooperation, exchange
information and share experiences with another
economies, especially in the Asia-Pacific region
where there is rich in disaster risk finance
management experience.At the same time, enhance
coordination with international organizations such
as WB, OECD, etc. to improve the legal framework,
develop financial strategies for disaster risk
management and the disaster risk database.
Policy implication for Vietnam
Vietnam is a developing countries mainly
using cash in the agricultural sector, and there
are limitations in accessing financial services, and
using technology transfer accounts of commercial
banks. According to Global Findex data, in 2014,
the payment of Vietnamese juveniles in rural
areas through banks accounted for only 29%,
the remaining 71% performing without a bank
account. TheWorld Bank estimates that awareness
of prevention and savings has gradually
improved, saving rates in rural agriculture in
Vietnam reached more than 60% of households,
of which spending on the emergency accounts
for 25% and 18% on the elderly, the remaining is
savings for the future.
According to the World Bank Group, in 2016,
Vietnam has been successful at reducing poverty
rates, but declining agricultural production has
brought some risks in the short term. Household
livelihoods based on agriculture are critically
affected. The issue of restructuring the agricultural
sector is paid special attention by the Party and
the government, however, a large amount of
