Tóm tắt tiếng anh: An ninh tài chính trong điều kiện kinh tế thị trường của Việt Nam.

INTRODUCTION
1. Urgency of the topic
Financial security is a part of national security. Financial security stabilizes the
macroeconomic environment and guarantees political stability and military security.
Crisis and financial insecurity can lead to political collapse. Ensuring financial security
is increasingly becoming an urgent issue for each country, especially in the context of
modern market economy, integration, globalization, and economic-financial
liberalization as fast and powerful as it is today.
In the market economy, the role of finance is like the economy's lifeblood,
helping resources to be mobilized, allocated smoothly and efficiently, and is the basis
to ensure the economic process reproduces at an individual and societal level.
However, only when financial security is ensured will the role of finance in the
economy be promoted. When the financial system is in crisis, it will lead to instability
in many fields of economy, politics, society, security, and defense. It may affect the
sustainable development of the country. If financial instability and financial crisis
occur, the economy may be disturbed, and the damage to the economy is difficult to
predict even at the micro level (households, businesses, financial institutions) and the
macro level (growth, budget, national debt, etc.).
The recent financial crises show that their impact is increasingly vital, taking
place globally, and it takes a long time to recover the economy. Therefore, financial
security is an important driving force for the country's development. However, this is
also difficult, especially in a market economy. Economic and financial activities take
place extraordinarily diverse and complex. Instability and crisis can arise from many
areas of the economy and finance.
In Vietnam, the financial sector has just reached the initial stage of development
of the market economy operation and integration process. Financial institutions still
have many shortcomings and weaknesses. The ability to meet international standards
on financial safety still needs to improve. The financial market also has many potential
risks. The market size is small and easily affected by fluctuations in the international

market. The financial infrastructure in our country also has many things that could be
improved. The legal environment is still not synchronized, has not kept up with the
development of the market, the level of information technology application is still low
compared to many countries in the region and the world, and has not kept up with the
requirements of the Government reality. Manifestations of many of the weaknesses
mentioned above over the past time have appeared a series of financial security holes
such as the transfer of VND 30,000 billion to an unknown subject, manipulating the
bond market, significant losses in the use of state budget related to Viet A company...
These are very urgent issues of financial security today.
Moreover, in the current context, practice is posing many urgent problems. In
the modern market economy context, economic and financial relations develop in the
trend of increasing liberalization, and many complex problems arise; subjects run after
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interests and group interests. Therefore, economic and financial activities are
complicated to control. If the financial system is not adjusted and perfected promptly
so that it can be prevented and monitored, instability and crises are likely to occur. In
addition, international factors such as the development of science and technology,
especially financial technology (Fintech), policy changes in major countries, and
international financial institutions also make the increased risk of instability and
financial crisis. It poses many challenges for Vietnam in ensuring financial security.
For the above reasons, the author chooses the topic "Financial security in the
context of Vietnam’s market economy" to research as the topic of the doctoral
dissertation in economics, majoring in political economy.
2. Research purpose and tasks of the dissertation
2.1. Research purposes
The purpose of the dissertation is to clarify the theoretical basis and practical
experience on financial security in the market economy, thereby analyzing and
assessing the current situation of financial security in the context of Vietnam's market

economy and proposing solutions to ensure Vietnam's financial security by 2030.
2.2. Research tasks
First, reviewing published domestic and international research related to
financial security in the context of the market economy clarifies the solved
problems that can be inherited and developed, gaps need to be filled in theory as
well as practice.
Second, building a theoretical framework on financial security in the context of
the market economy: Clarifying the concept and the need to ensure financial security
in the context of the market economy; Content, evaluation criteria, and factors affecting
financial security; Studying experiences on ensuring financial security in some
countries around the world and drawing lessons for Vietnam.
Third, analyze the current situation of financial security of Vietnam in the
period 2011-2021 based on the theoretical framework built to point out the
achieved results and limitations that need to be overcome in the coming time.
Fourth, propose views and solutions that are both urgent in the immediate
future and fundamental in the long term to ensure Vietnam's financial security in
the coming time.
3. Subject and scope of research
3.1. Research subject
The research subject of the dissertation is "financial security in the context of
the market economy." It includes ensuring an environment for financial relations to
occur stably and healthily, allocating resources effectively and transparently, and
meeting the economic actors' needs; improving the risk management and prevention
capacity of regulatory agencies and financial institutions; forming and establishing
mechanisms to absorb or withstand economic shocks.
3.2. Scope of research
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- Scope of content:

The dissertation studies financial security at the macro level as national financial
security, it does not delve into the financial security of each specific financial sector
and does not study in detail the contents, methods, and quantitative and technical
indicators of finance to assess and analyze financial security developments. Instead,
the dissertation focuses on analyzing and clarifying the relationship between financial
security and socio-economic development in the context of the market economy,
Thereby identifying more clearly the beneficial relationships between stakeholders that
may be involved in ensuring financial security to give appropriate views and solutions.
In particular, the dissertation focuses on three aspects: ensuring an environment for
financial relations to occur stably and healthily, allocating resources effectively and
transparently, and meeting the economic actors' needs; improving the risk management
and prevention capacity of regulatory agencies and financial institutions; forming and
establishing mechanisms to absorb or withstand economic shocks. The illustrated
figures focus on basic areas such as the economy's strength, financial markets,
insurance markets, credit market, national budget, and national debt index.
- Scope of location:
Dissertation on financial security research within the Vietnamese economy
- Time range:
The dissertation focuses on studying Vietnam’s financial security from
2011 to the present and orientation to 2030.
4. Theoretical foundations, approaches, and research methods
4.1. Theoretical foundation and approach
First, the dissertation uses the theoretical basis of Marxism-Leninism and
Ho Chi Minh's thought, in which the theory focuses on the relationship between
financial security and the stability of the production and reproduction process in
the market economy.
Second, the dissertation inherits some views and theories of economists
and reputable research organizations on financial security. In particular,
especially the IMF's studies on the framework of analysis and assessment of
financial security, theoretical perspectives on the financial security of central

banks, and domestic and foreign economists.
Third, the dissertation researches and thoroughly grasps the viewpoints,
lines, and undertakings of the Party, policies, and laws of the State in finance and
financial security.
4.2. Research methodology
Regarding methodology, the dissertation uses the dialectical and historical
materialism of Marxism-Leninism in studying financial security in the market economy.
Regarding specific research methods, the thesis uses research methods of
the political economy, including scientific abstraction, logically combined with
history, systematization, analysis and synthesis, comparative methods,
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diagramming, charting ... to research to clarify the nature, content, and movement
of the research object is financial security in the context of the market economy.
These specific methods are applied in accordance with the purposes,
requirements, and tasks of each chapter and section.
5. New contributions of the dissertation
Firstly, the dissertation builds a more explicit theoretical framework for
financial security in the context of the market economy. In particular, the
dissertation clarifies the concept, necessity, content, and factors affecting
financial security from the political economy perspective. It provides a system of
criteria for assessing financial security in the context of the market economy.
Secondly, the dissertation analyzes and objectively assesses the financial
security situation of Vietnam in the period 2011-2021 on actual contents such as
stability, financial soundness, and efficiency in resource allocation for the economy;
risk management capacity of regulators and financial institutions; ability to absorb
and withstand shocks, thereby indicating the achieved results, limitations and causes.
Thirdly, the dissertation clarifies the domestic and international context
affecting Vietnam's financial security. Such as the impact of the Covid-19 pandemic;

the impact of the integration process; the impact of the trend of digital transformation;
the impact of the international political instability and conflicts; the impact of
globalization and market fragmentation; the influence of powerful countries. The
dissertation also gives five perspectives on ensuring the financial security of Vietnam,
from which the dissertation proposes four groups of solutions to ensure the financial
security of Vietnam toward 2030. The solutions include a group of solutions to
improve stability, financial soundness, and efficiency of resource allocation; a group
of solutions to improve risk management and prevention capacity; a group of
solutions for perfecting the mechanism of absorbing and resisting shocks; a group of
solutions to establish a digital financial foundation and develop modern financial
infrastructure in the context of the fourth industrial revolution.
6. Structure of the dissertation
In addition to the introduction, conclusion, list of references, drawings,
illustrative tables, and appendices, the dissertation content is structured into four
chapters and ten sections.
Chapter 1
OVERVIEW OF RESEARCH SITUATION RELATED TO FINANCIAL
SECURITY IN THE CONTEXT OF THE MARKET ECONOMIC
1.1. DOMESTIC AND FOREIGN RESEARCH RELATED TO
FINANCIAL SECURITY IN THE CONTEXT OF THE MARKET
ECONOMY
1.1.1. Research works on the concept, content, and factors affecting
financial security in the context of the market economy
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1.1.2. Research works on the framework and criteria for assessing financial
security in the context of the market economy
1.1.3. Research works on an actual assessment of the financial security
situation in Vietnam and some other countries in the context of the market economy

1.2. GENERAL ASSESSMENT AND ISSUES NEED TO CONTINUE
RESEARCH
1.2.1. Overall evaluation of published research results
- In theory: Some studies have built a general theoretical framework on finance
and financial security, such as content, nature of finance, the relationship between
finance and the real economy, between finance and public policies; the concept of
financial stability, the causes of the crisis, the criteria for assessing financial stability,
the development trend of the financial system; challenges of the financial system
before the trend of financial liberalization, the development of science and
technology, the impact of the internationalization of currencies...
- In practice: The studies mainly focus on analyzing and evaluating
experiences ensuring financial security from historical financial crises such as the
1997 East Asian financial crisis and the 2008 global financial crisis. Studies have
shown manifestations of crisis and areas of origin of unrest. Studies have also
provided solutions to countries' responses to the financial crisis in various aspects,
such as legal issues, risk management issues, organizational reform, and
organizational improvement regimes. Some recent domestic studies had also
assessed Vietnam's financial security in recent times in association with new
contexts such as the Fourth Industrial Revolution, globalization, and the financial
and monetary security of Vietnam before the fluctuations of the world financial
market and proposed some solutions and recommendations in the period up to 2030.
1.2.2. The gap needs further research in the dissertation
- Theoretical gaps need further clarification
Firstly, approaching financial security in the context of the market economy
from the political economy perspective derives from the nature and function of
finance, which is the socio-economic relationships in the analysis process distribution
of values and social wealth related to the interests of actors in the economy. Therefore,
when studying financial security in the market economy, it is necessary to analyze
the relationship of benefits in a dialectical relationship with financial security. From
there, develop the concept and clarify the content and content of financial security.

Second, systematize and clarify the factors affecting financial security in
the context of the market economy in association with the current new context
and build a system of indicators to evaluate financial security in the context of
the market economy.
- Practical gaps need to be studied
Through the overview of the research situation related to the dissertation
topic, the Ph.D. student found that there have been few systematic and
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comprehensive studies on Vietnam's financial security in the current context of
the market economy. Therefore, there are many open issues, for example:
What is Vietnam's current financial security situation since the 2008 world
financial crisis, especially in the past ten years? What is the impact of the Covid-19
pandemic on Vietnam's financial security today? What is the current context and trend
of domestic and international economic and financial development and its impact on
Vietnam's financial security? How do the development of science and technology and
the digital economy affect Vietnam's financial security? And especially what solutions
can be given to ensure the financial security of Vietnam in the near future.
Although there are many such gaps, within the framework of this
dissertation, the research focus will focus on the following practical aspects:
Firstly, focus on clarifying the concept, evaluation criteria, and factors
affecting financial security in the context of the market economy and pointing
out the main changing trends of the domestic economy and finance and
international as well as forecast its impact on the financial security of Vietnam.
Secondly, assess the financial security situation of Vietnam in the past time,
find out the achieved results and the remaining limitations, and point out the causes.
Thirdly, propose some directions and solutions based on international
experience, the current situation in Vietnam, and the carried out forecast analysis
to ensure the financial security of Vietnam in the coming time.

Chapter 2
THEORETICAL BASIS AND PRACTICE EXPERIENCE ON FINANCIAL
SECURITY IN THE CONTEXT OF THE MARKET ECONOMY
2.1. CONCEPT AND THE NECESSITY TO GUARANTEE FINANCIAL
SECURITY IN THE CONTEXT OF THE MARKET ECONOMY
2.1.1. The concept of financial security in the context of the market economy
2.1.1.1. Some concepts about financial security
Currently, in the world, there are many different concepts of financial
security, and there is not a single concept that is generally accepted and widely
used in many countries. Through analysis and syndissertation, it can see that
some standard features in the concepts of financial security are:
(1) The financial system operates stably and performs well the function of
allocating resources and promoting economic processes. (2) Capable of screening
and spreading risks. (3) Able to withstand shocks, ensuring safety.
From that, it can understand that financial security is a state in which
financial relations are stable and healthy, contributing to the efficient allocation
of resources to promote economic processes and, at the same time, being able to
manage financial security, hedge, and withstand shocks.
2.1.1.2. The concept of the dissertation on financial security in the
context of the market economy
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From the perspective of political economy, financial security derives from
the functions and practical requirements of finance in the market economy,
whereby financial security must ensure the following three essential contents:
(1) Ensuring resources allocate smoothly and effectively, meeting the
needs and harmonizing the interests of economic actors in the development
process; (2) ensuring the ability to monitor, supervise, inspect and evaluate
financial activities, serving the management and prevention of risks. (3) ensure

there is a mechanism to absorb or withstand shocks (internal or external) that may
occur. In addition, when studying financial security, it must also be placed in the
orientation and goals of the socio-economic development of the country.
Based on inheriting the existing studies and from the political economy
perspective, the author proposes the concept of financial security in the market
economy as follows:
Financial security in the context of the market economy is a state in which
financial relations occur stably and healthily, and resources are allocated
efficiently and transparently, meeting the needs of actors in the economy while
ensuring the ability to manage and prevent risks and having an effective
mechanism to absorb or withstand shocks, creating conditions to promote socioeconomic development based on compliance with market rules.
2.1.2. The necessity to ensure financial security in the context of the
market economy
First, the market economy itself requires financial security
Second, economic devastation is often severe when a financial crisis
occurs, so financial security must be ensured.
Third, when financial security is ensured, it will contribute to socio-political
stability, national defense and security, and the country's sustainable development.
2.2. CONTENTS, ASSESSMENT CRITERIA, AND FACTORS
AFFECTING FINANCIAL SECURITY IN THE CONTEXT OF THE
MARKET ECONOMY
2.2.1. The content of financial security in the context of the market economy
2.2.1.1. Ensuring an environment for financial relations to take place
stably and healthily, resources are allocated efficiently and transparently,
meeting the economic actors' needs.
First, financial security must ensure that financial relations occur stably and
healthily. Stability is the absence of abnormal fluctuations that may harm the
economy, and stability is not static. Stability means dynamic stability in the
increasingly diverse economic sectors' financial relations development. Stability
can only be achieved based on healthy financial relationships and minimizing

illegal and shady relationships.

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Stability and soundness play an essential role in allocating resources to the
economy, ensuring that capital is not stagnant or distributed unbalanced, which
are potential factors for instability.
The State is the leading actor performing the functions and tasks of
ensuring the environment so financial relations can occur stably and healthily.
2.2.1.2. Improve the risk management and prevention capacity of
regulatory agencies and financial institutions
The financial system's stability is partly through self-regulatory
mechanisms and market discipline, creating endogenous resilience to prevent
plaguing problems that can develop into risks on the world market and the whole
system. Besides, external intervention is also required to avoid and overcome
possible vulnerabilities to ensure stability.
In the modern market economy, in addition to respecting market rules, in any
market, it is also necessary to have a management role in the State through specialized
management agencies, public agencies, etc. tools, standards, technical standards and
evaluation, monitoring systems, handling, and operating mechanisms.
Capacity building for risk management and prevention must be done at the
macro and micro levels. In addition to improving the capacity of state
management agencies, financial institutions must also improve. It is also
necessary to actively improve management capacity.
2.2.1.3. Forming and establishing mechanisms to absorb or withstand
economic shocks in general
In order to have a mechanism to absorb or withstand shocks, it is necessary
to establish a system of policies, the most important of which are still fiscal policy
and monetary policy. Harmonious coordination between the two policies is

crucial to ensure general macroeconomic stability but still withstand the effects
of shocks.
In addition, it is necessary to have reserve resources (reserves of all kinds)
that can be used in urgent cases, which is a necessary foundation to ensure
solvency, especially foreign exchange reserves ensuring that international trade
activities are maintained. It is crucial for countries with sizeable import-export
turnover or significant economic openness.
2.2.2. Criteria for assessing financial security in the context of the market
economy
2.2.2.1. Criteria for assessing the level of financial stability, soundness,
and efficiency in resource allocation for the economy
❖ Criteria for assessing the level of financial stability and soundness
Indicator group 1: Strength of the economy
(1) Economic scale and growth (GDP)
(2) People's wealth (average GDP)
Criterion group 2: Risks of the budget deficit and national debt
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(3) Budget deficit/Total budget revenue
(4) Budget deficit/GDP
(5) Public debt/GDP ratio
(6) Government debt/GDP
(7) Government's direct debt repayment obligation (excluding on-lending)
compared to the total annual state budget revenue
(8) External debt/GDP
(9) Foreign debt repayment obligation/Export turnover of goods and services
Criterion 3: Risks of currency and credit instability
(10) Inflation rate
(11) Credit/GDP ratio

(12) Credit growth/GDP growth
(13) Current account deficit/GDP
(14) Evolution and exchange rate management of the SBV
(15) Ratio of foreign exchange reserves and short-term foreign debt
❖ Criteria to evaluate the efficiency of resource allocation
In this part, the author uses the set of Financial Development Index
(Financial Development Index) researched by the IMF to estimate the impact of
financial development on economic growth, inequality, and economic stability.
Financial development involves improvements in the functions provided by the
financial system, such as (i) aggregation of savings; (ii) capital allocation for
production investment; (iii) supervision of investments; (iv) diversification and
spread risks; (v) promote the exchange of goods and services. Financial
development affects the accumulation and allocation of capital, people, and TFP
- the three determinants of economic growth.
2.2.2.2. Criteria for assessing management capacity and risk prevention
of regulatory agencies and financial institutions
The set of criteria for assessing the ability of regulators to manage and prevent
risks in the financial system: (1) Evaluation of the model of the national financial
supervision system; (2) Evaluation of supervision mechanism and activities: level of
legal perfection, safety standards, monitoring system, and market supervision
activities, level of application of information technology and security.
A set of criteria for assessing the ability of financial institutions to manage
and prevent risks: (1) Assess the ability to comply with regulations of regulatory
agencies on financial safety standards; (2) Assess the ability to meet international
standards on safety and risk prevention.
2.2.2.3. Criteria for assessing the ability to absorb and withstand shocks
- Assess the timeliness and effectiveness of policies and coordination
among state agencies in responding to the impact of shocks.
- Assessment of the ability to mobilize, arrange and use financial resources
for the process of responding to the impact of shocks

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2.2.3. Factors affecting financial security in the context of the market
economy
2.2.3.1. Internal factors of the financial system
Internal
• Financial risk
• Information/communication risks
factors of
• Operational risks
• Strategic business risks
financial
• Weaknesses of
• Risk of conflict of interest
institutions
information technology • Risk of capital adequacy
• Legal/integrity risk
• Reputational/moral/management risk
Market factors • Counterparty risk
• Asset mispricing
• Market operations
• Mechanism of specialized lines, infection
Elements of
• Payment system risks
financial
• Legal, accounting, and supervision infrastructure
infrastructure • Domino effect
• The media
2.2.3.2. External factors

Macroeconomic turmoil
• Risks on the economic environment
• Policy imbalance
Event risk
• Natural disasters, epidemics
• Political events
• Failure of big firms
2.3. EXPERIENCE OF SOME COUNTRIES ON ASSURANCE OF
FINANCIAL SECURITY IN THE CONTEXT OF THE MARKET
ECONOMY AND LESSONS FOR VIETNAM
2.3.1. Experiences of some countries on ensuring financial security in
in the context of the market economy
In this part, the dissertation studies international experience on three
important contents of financial security, which are: (1) experience in institutional
change to ensure financial security in line with the development of financial
institution's modern economic-financial system, case study of the United States as
a country with a developed financial system; (2) experience of event risk in the
economy can affect financial security because event risk can be a manifestation of
a systematic, policy imbalance, so need to detect and promptly handle to avoid
leading to crisis, case study of China; (3) experience in responding to the impact of
the world financial crisis, the case study of Malaysia. On that basis, lessons are
drawn for Vietnam in ensuring financial security in the current period.
2.3.2. Lessons learned for Vietnam on ensuring financial security in
the context of a market economy
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First, raise financial safety standards and enhance information transparency.
The general trend is that capital adequacy, liquidity, and systemic risk standards raise
to improve the financial system's safety, harmonize the business cycle, and reduce

costs to the consumer population in a crisis.
Second, timely detection and handling of risks outside the financial system that
may affect financial security. A financial crisis can completely originate from a microevent. The failure of a large firm can reduce market confidence, the risk of creating a
Domino effect and creating an imbalance, affecting the entire financial system.
Third, timely response to the impact of the financial crisis. A formal "crisis
handling mechanism" should be developed/completed. In which assigning
specific responsibilities to state management agencies, establishing coordination
mechanisms, issuing appropriate and timely policies, and setting up contingency
financial sources (funds) for handling crises. In addition, the role of the
information disclosure agency is also essential.
Chapter 3
FINANCIAL SECURITY STATUS OF VIETNAM IN THE CONTEXT
OF THE MARKET ECONOMY FOR 2011-2021
3.1. OVERVIEW OF VIETNAM'S FINANCIAL SYSTEM
3.1.1. Financial Institutions
3.1.1.1. Credit institutions
From 2011 to 2015: The project on restructuring the system of credit
institutions from 2011 to 2015 was born to make it healthy, improve safety, and
improve discipline in the credit institution system. From 2015 to 2020: Many
strict regulations were issued, such as Circular 41 (Basel II), Circular 22
(outstanding credit ratio to mobilized capital (LDR), short-term capital for
medium and long-term loans, ...). Results: many banks have completed the
settlement of VAMC bad debts, the ownership structure at most banks is stable,
and operational efficiency is increasing. From 2020 to the present: The industry's
competition level has increased. Digital transformation, digital banking, and
ecosystem are the goals being pursued by many banks.
3.1.1.2. Other financial institutions
❖ Securities companies
Since 2012, there has been tightening and reducing securities companies. In
2013, there were 13 specially controlled securities companies and six controlled

securities companies. By 2014 there were only 89 securities companies. In 2016 it
continued to decrease to 76 securities companies, and by 2019 only 74 securities
companies were operating in the market. From 2020 to 2021, the number of securities
companies tends to increase, with 89 securities companies operating in association with
the development of the stock market during this period. About personnel at securities
companies: Mainly brokerage personnel, accounting for 69.47%; financial analysis
practitioners accounted for 19.92%, and fund managers accounted for 10.61%.
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❖ Insurance companies
Currently, there are 72 insurance enterprises in Vietnam, including 31 life
insurance enterprises, 18 non-life insurance enterprises, two reinsurance enterprises,
20 insurance brokerage enterprises, and one insurance company branch of foreign
non-life insurance enterprises. Insurance products are increasingly diversified,
meeting the economy's and society's insurance needs. Currently, there are about 2,894
insurance products belonging to all insurance lines. The operating network of the
insurance market is expanded, serving customers from sales, care and compensation.
3.1.2. Financial markets and instruments
3.1.2.1. Interbank money market
Over the years, the size of the interbank money market has been
increasingly expanded. The interbank market is where banks or credit institutions
borrow from each other to support each other and share in difficult times with
excess reserves to meet short-term liquidity needs.
3.1.2.2. Credit market
In the financial markets, the credit market is still the main channel for
mobilizing and allocating capital for production and business activities of the
economy. In recent years, credit growth has consistently been above 12%,
contributing to promoting and maintaining a relatively high GDP growth in Vietnam
in the past period. In the last two years of the epidemic, credit growth was at 12.17%

and 13.61% in providing credit capital needed to help businesses overcome
difficulties. In terms of credit structure, from 2014 to now, credit for other service
activities has always accounted for the highest proportion of outstanding loans, which
shows that credit capital has yet to really focus much on the manufacturing sector.
3.1.2.3. Stock market
The stock market is becoming a powerful capital mobilization channel for
the Vietnamese economy and is increasingly solid and complete in structure.
Activities through the Internet and digital platforms flourished. People's
awareness of the capital market has increased rapidly. Investors in Vietnam's
stock market are becoming increasingly mature, not overreacting to external
information but behaving more in accordance with basic fundamentals.
3.1.3. Financial Infrastructure
3.1.3.1. Legal system and state management
Up to the present time, given the context and experimental conditions in
Vietnam, the legal system is considered to be relatively complete for the financial
system to operate. Currently, there is the Law on State Budgets, Law on State Banks,
Law on Credit Institutions, Law on Insurance Businesses, Law on Securities, and
many other legal documents that contribute to perfecting the legal framework
mechanisms and policies in line with international practices and standards, and
better meet the requirements of state management in the financial sector.
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3.1.3.2. Organizational apparatus and mechanism for monitoring and
enforcement
Vietnam's financial supervision model currently follows a decentralized
model based on institutions. Accordingly, the State Bank shall inspect and
supervise the activities of credit institutions, and the Ministry of Finance shall
supervise securities and insurance activities (under the direct supervision of the
State Securities Commission and the Insurance Department).

3.1.3.3. Information Infrastructure
In recent years, Vietnam's credit depth index has improved significantly,
from 5/8 points in 2015 to the maximum score of 8/8 in 2020; Credit information
coverage also increased from 41.8% in 2015 to 59.6% in 2020. Even these
indicators are higher than the averages of the Asia-Pacific region.
3.1.3.4. Payment system and transaction support
The non-cash payment system in Vietnam is being researched and perfected,
and technical infrastructure and technology are being invested, improving quality
and, at the same time, ensuring system security and safety. In addition, the inter-bank
electronic payment system is constantly being improved, ensuring stable operation,
and providing the ability for large-scale transactions.
3.2. FINANCIAL SECURITY SITUATION OF VIETNAM IN 2011-2021
3.2.1. Status of financial stability, soundness, and efficiency in resource
allocation for the economy
3.2.1.1. Status of financial stability and soundness
❖ Strength of the economy
(1) Scale and economic growth: Vietnam's GDP has continuously increased
over the years. According to the World Bank, in 2021, the GDP scale will reach 362.64
billion USD, ranking 39th out of 207 economies. However economic growth rate
fluctuates. In the 2011-2019 period, GDP continuously grew at over 5% per year. Since
2020, due to the impact of the Covid-19 pandemic, Vietnam's economic growth has
dropped sharply because of the disruption of many economic activities.
(2) The level of people's wealth: Vietnam's GDP per capita has
continuously increased over the years, including 2020, which was heavily
affected by the pandemic. However, compared with the average level of the world
and some countries in the region, the income of Vietnamese people is still low.
❖ Risks of the national budget deficit and national debt
(3) National budget deficit/Total National budget revenue: 2015-2016, this rate is
high and unsafe. From 2017-2019 this ratio has decreased sharply and is at a safe level
when it is only maintained at more than 10 %. However, in 2020-2021 this rate tends to

increase again due to the impact of Covid-19. State budget revenue is severely affected,
and if this situation persists in the following years, it will be a risk of insecurity.
(4) National budget deficit/GDP: In the period 2011-2016, the ratio of the
State budget deficit to the GDP of Vietnam was relatively high, exceeding the
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threshold of 5%, setting the State of budget security in particular and financial
security in general to the warning level. The period 2017-2021 is the period when
the state budget deficit compared to GDP is maintained at a low level of less than
5% to ensure safety, and it can be said that this is an excellent effort of the
Government in balancing the budget and reducing the deficit spending.
(5) Public debt-to-GDP ratio: in 2011-2016, public debt continuously
increased, from 50.8% of GDP in 2012 to nearly 65% of GDP in that period. In
2017-2021, Vietnam's public debt was controlled sustainably, accounting for
about 57% of GDP, within the safe threshold set by the National Assembly.
(6) Government debt/GDP: Government debt from 51.7% of GDP in 2017 to
39.1% of GDP in 2021. There are two reasons for this sharp decrease, which is due
to a complete recalculation. GDP size of the economy and GDP size increase in
2021.
(7) The Government's direct debt repayment obligation compared to the total
annual state budget revenue: In 2021, the Government's direct debt repayment
obligation is about 368,276 billion VND, mainly domestic debt repayment with about
323,093 billion VND, equal to about 27.4% of budget revenue. This index exceeds
the threshold allowed by the National Assembly for the period 2016-2020 at 25%.
(8) Foreign debt/GDP: 2016 - 2020, this indicator tends to increase. By the
end of 2020, the country's external debt to GDP stood at 47.9%, close to the 50%
threshold allowed by the National Assembly. At some point, this target approached
the 50% limit, putting pressure on the national foreign debt safety target.
(9) Foreign debt repayment obligation/Export turnover of goods and

services: During the whole period 2016-2020, this target increased sharply,
exceeding the limit allowed by the National Assembly of 25%, mainly due to
activities capital withdrawal and principal repayment of short-term foreign loans
of enterprises and credit institutions increased.
❖ Risk of currency and credit instability
(10) Inflation rate: 2011–2015, thanks to the synchronous application of tight
fiscal and monetary policies, while promoting production, increasing exports and
controlling trade deficit, etc., tends to decrease and reach a record low of 0.63% in
2015. From 2016 to 2021, Vietnam's inflation rate has always been stable at below 4%.
(11) Credit-to-GDP ratio: Vietnam's credit-to-GDP ratio is over 140%, in the
group of countries with the highest rate according to international assessment. Suppose
this ratio continues to increase, and medium and long-term loans rely heavily on banks.
In that case, it will put tremendous pressure on the capital balance of the banking system
and macro balance.
(12) Credit growth compared to GDP growth: in 2012-2017, this rate in
Vietnam was relatively high, about 2.5-3 times. In 2018, credit growth slowed
down to strictly control credit. This rate in the period of 2018-2019 was stable at
approximately two times. Due to the impact of Covid-19 in 2020 and 2021, credit
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growth remains above 12%, but the GDP growth rate is only low. It can be seen
that credit cannot go into production and business generally from 2018 to 2019
(13) Current account deficit/GDP: From 2013 to 2021, Vietnam's current
account can often be seen as a surplus. There are some times when the balance is
in deficit. In 2021, due to the impact of the pandemic, the trade balance of goods
and trade balance will be in deficit for two consecutive quarters, the current
account of Vietnam is still at a safe threshold of less than 5% of GDP.
(14) Evolution and exchange rate management of the State Bank: In the
period 2014-2020, it can be seen that the USD/VND exchange rate tends to

increase from about 21,000 VND to more than 23,000 VND. The central
exchange rate is more market-oriented, more flexible, and can rise, fall and stand
still, not showing a clear trend for speculation.
(15) The ratio of foreign exchange reserves to short-term foreign debt: in
the period 2011-2015 averaged about 286.4%, and in the 2016-2020 period,
about 296.8%, meeting the target of over 200%. This is the buffer that helps
Vietnam to withstand the economic shocks that are present around the world.
3.2.1.2. Status of efficiency in resource allocation
In the recent period, Vietnam's FDI index is at 0.35-0.4 and is in the range
of emerging economies. The weakness in Vietnam's financial development
comes from its ability to access financial institutions, and the development of the
financial market's depth is also at a low level of about 0.25 points.
3.2.2. The current situation of improving management and risk
prevention capabilities of regulatory agencies and financial institutions
3.2.2.1. Risk management and prevention in the banking sector
❖ For management agency
Regarding the promulgation of legal frameworks and safety standards:
Since 2014, the SBV has approved the roadmap for Basel implementation.
Determining that this is a key and essential job, the State Bank has actively
implemented many solutions synchronously, paying particular attention to
prioritizing the development of the legal framework.
Regarding the restructuring of the banking system in association with bad
debt settlement: The legal regulations have gradually improved, helping the
whole system of credit institutions to handle bad debts and achieve positive
results. The banking system's on-balance sheet bad debt ratio has continuously
decreased and remained below 3% since 2014.
Monitoring the macroprudential system: In 2015, the SBV began to
develop a macroprudential policy framework, including three main components:
monitoring and supervision of systemic risks, macro safety tool selection and
implementation, and a suitable institutional framework.

Regarding inspection and supervision activities with credit institutions:
Annually, the State Bank of Vietnam has conducted hundreds of inspections,
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assessing each credit institution's financial status and clarifying the major and
common weaknesses and risks of credit institutions to propose handling measures
and propose solutions to restructure credit institutions.
❖ For banks
Regarding the ability to meet Basel II standards: Practice shows that raising
capital to meet Basel II standards is still a big challenge for banks, especially in the
context that banks still have to focus on handling bad debts of banks many years ago.
Regarding bad debt settlement: The bad debt settlement and restructuring
of credit institutions of the whole system have had many positive signs, achieving
the implementation plan of Decision No. 843/QD-TTg and Decision No. 1058/
According to the Prime Minister's Decision, the bad debt ratio on the balance
sheet is always lower than 3%.
3.2.2.2. Risk management and prevention in the insurance sector
❖ For management agency
On completing the legal framework on insurance business: The Law on Insurance
Business (amended) was just passed at the 3rd Session of the XV National Assembly on
June 16, 2022, and took effect from January 1, 2023. It has followed seven main contents
to increase the autonomy of businesses in business activities, and the management
agencies refrain from interfering too deeply with technical aspects in the operation of
insurance companies such as before.
Regarding the mechanism and activities to supervise the insurance market:
Vietnam's supervisory authority is applying a compliance monitoring method focusing on
assessing the soundness of financial activities and solvency of insurers in Vietnam. The
evaluation time is based on the business situation of the insurer in the past.
❖ For insurance companies

Total assets, equity, and professional reserve fund of insurance companies
are increasing, ensuring the business's solvency, especially for the risks that the
insurance company faces, such as insurance risk, interest rate risk, market risk,
credit risk, and operational risk. Investment activities of enterprises ensure safety,
efficiency, and liquidity.
3.2.2.3. Risk management and prevention in the securities sector
❖ For management agency
Legal framework for securities trading organizations: The Ministry of Finance
has issued Circular 226/2010/TT-BTC, Circular 165/2012/TT-BTC, Circular
87/2017/TT-BTC, 91/ 2020/TT-BTC stipulates financial safety norms and handling
measures for securities trading organizations that do not meet financial safety criteria.
Legal framework for market management and supervision: The Ministry
of Finance has issued Circular 13/2013/TT-BTC, followed by Circular
115/2017/TT-BTC, and most recently, Circular 95/2020/ TT-BTC guides the
supervision of securities transactions on the stock market.
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Regarding the mechanism and activities of market supervision: Since January
1, 2021, the Securities Law 2019 officially took effect, the supervision of the stock
market continues to be consolidated and perfected. Regulations on the roles and
responsibilities of supervision of the market management and supervision agencies
- the State Securities Commission, the Stock Exchange, the Securities Depository
and Clearing Corporation, the securities company, and the custodian bank.
❖ For securities companies
The average ratio of available capital of securities companies increases
gradually over the years. The indicators ROS, ROA, and ROE of securities
companies in the period of 2013-2019 have increased and decreased, but all have
positive values. Thereby, the business results and financial situation of
Vietnamese securities companies in the period 2013-2019 are relatively stable

and have many positive signs.
3.2.3. The reality of the ability to absorb and withstand shocks
In the past ten years, the biggest shock affecting the economy in general
and financial security, in particular, was the Covid-19 pandemic.
Regarding the timeliness and effectiveness of policies: In general, the fiscal and
monetary policies are timely and practical towards the goal of increasing the resilience
of the economy in the context of the pandemic, ensuring social security, unemployment
insurance, allowances for workers and vulnerable subjects; tax reduction for small and
medium enterprises; encourage production, in order to restore consumer confidence,
restore business confidence, create jobs and reduce unemployment.
Ability to mobilize, arrange and use financial resources: Fiscal support package
of VND 180,000 billion, an extension of time limit for payment of value-added tax,
corporate income tax, personal income tax, and land rent for five target groups. Support
package of 62,000 billion VND for social security. This is the first package of "fresh
money" from the state budget used to support people during the pandemic with the
motto "leaving no one behind." Credit support package of VND 300,000 billion to
extend debt and reduce interest rates when borrowing from banks. The total value of
the three bailout packages is equivalent to about 8% of Vietnam's GDP.
Results: Economic growth was positive again after the third quarter of 2021
at -6.17%, and the whole year of 2021 GDP growth at 2.58%. The economy is
heading towards a recovery, back to a new normal
3.3. GENERAL ASSESSMENT OF VIETNAM'S FINANCIAL
SECURITY FOR 2011-2021
3.3.1. Achievements

3.3.1.1. Financial stability, soundness, and efficiency in resource allocation

(1) the strength of the economy is increasingly consolidated and increased;
(2) budget deficit and public debt are gradually better controlled; (3) inflation is
well controlled, especially from 2016 up to now; (4) the exchange rate is operated

according to the central exchange rate mechanism to ensure macro-balance; (5)
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the current account is constantly in surplus, foreign exchange reserves are
abundant; (6) Vietnam's financial development index is at the average world
level, belonging to the group of emerging economies.
3.3.1.2. The capacity to manage and prevent risks
❖ In the banking sector
(1) The State Bank has accelerated the application of safety standards under
Basel II, which is considered a strategic solution, qualitatively changed, creating
a foundation for the Vietnamese banking system to be fully functional efforts to
meet the requirements of development and integration, and at the same time
strengthen supervision of the performance of banks; (2) Supervision of macrosystem safety is also implemented by the State Bank and increasingly
standardizes the process to monitor and monitor systemic risks; (3) Banks
actively applied Basel II, some banks completed all three pillars of Basel II ahead
of schedule and progressed to Basel III. (4) The State Bank also accelerated the
bad debt settlement process according to Resolution 42/2017/QH14 of the
National Assembly and the Project "Restructuring the system of credit
institutions associated with bad debt settlement for the period 2016-2020."
❖ In the field of insurance
(1) The legal system of the insurance business is increasingly being improved in
the direction of modernity, enhancing transparency, disclosing information, and creating
a competitive environment in the direction of integration. (2) The financial security of
enterprises in the insurance market is ensured, and the indicators of total assets, equity,
and professional reserve fund of insurance companies are increasing to ensure solvency.
Investment activities of enterprises ensure safety, efficiency, and liquidity.
❖ In the field of securities
(1) The legal framework for securities trading organizations is increasingly
being improved, with regulations on financial safety according to CAMEL standards;

(2) The legal framework for market supervision is gradually updated and synchronized
as well as ensuring more comprehensiveness; (3) During the process of supervision
and inspection, the SSC has cooperated with functional agencies to detect many cases;
at the same time, strictly handle individuals and organizations that commit acts of
manipulation, insider information and other violations of the law; (4) The stock market
develops more stably, the scale is expanding, the stock market gradually becomes an
important medium and long-term capital mobilization channel of the economy.
3.3.1.3. The ability to absorb and withstand shocks
(1) The effectiveness of the promulgated policies, ensuring the right focus,
in line with the objectives of each period; (2) good coordination between policies;
(3) balance financial resources, reserve in the process of responding to shocks,
ensure sufficient resources and ensure budget discipline; (4) Besides, doing well
the information and communication work to ensure social stability.
3.3.2. Limitations and reasons
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3.3.2.1. Financial stability and soundness, and efficiency in resource
allocation
Firstly, the economy's strength has improved but needs to be more modest, not
creating a safe premise large enough for sustainable financial security. The low quality
of growth reflected in the ICOR index of Vietnam is still relatively high compared to
other countries in the region; The structure of GDP needs to be more sustainable; In
addition, per capita income still needs to be higher. The reason is that the stability and
quality of growth are still low.
Second, the budget deficit, public debt, and external debt are increasing, and
there is a risk of exceeding the safe threshold, especially in the context of the impact of
the Covid-19 pandemic. The reason is that Vietnam is in the stage of investment in
infrastructure development, vital economic sectors, and critical economic regions, so
the budget used for development investment is enormous. In addition, the decrease in

ODA capital forced the Government to use the budget and issue bonds for investment.
Along with budget revenue, it is facing difficulties in the context of the prolonged
impact of the Covid pandemic.
Third, the debt ratio is getting larger and larger relative to the size of the economy.
The reason is that the financial market has not had a stable and healthy development,
especially since there has not been a balance between the money and capital markets.
Fourth, the contribution of financial development to economic growth is still
limited. The reason is that people's access to financial institutions and financial
services, although improved, is still quite low. Besides, the in-depth development of
the financial market is still low, and the capitalization value of the stock market
compared to GDP is still low compared to other countries in the region.
3.3.2.2. Capacity of management and prevent risks
- Regarding the national financial supervision model: The financial supervision
model is distributed by specialization but lacks close and effective coordination
among agencies in the financial safety net; the monitoring method is biased towards
compliance monitoring, not paying due attention to risk-based supervision; Careful
monitoring of the financial market has not been paid due attention.
- In the banking sector: Currently, the world has applied Basel III and moved to
Basel IV, while in the country, some banks are still struggling with Basel II. The
roadmap to apply until 2021 has not been properly implemented and must be adjusted.
Time adjustment applies to some banks. The problem of capital is still a big problem for
banks to meet the requirements and meet Basel II standards, especially in the context of
the recent unfavorable stock market, while banks are still focusing on bad debt settlement
- In the field of insurance: The legal system has not been completed fully and
synchronously and is in the process of being perfected, leading to a lack of transparency,
unfair competition, profiteering, and insurance fraud. Along with that, the overall
structure of the market is not balanced when the reinsurance market is still in its infancy.
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- In the field of securities: Acts of circumvention, manipulation, and false
information adversely affect the market, but consecutively detected violations cause
psychological confidence in investors in the securities market affected the market. The
reason is that the legal system has not been fully completed, synchronous and modern.
3.3.2.3. The ability to absorb and withstand shocks
Firstly, there are still gaps in the policy enforcement mechanism, which
leads to policy corruption and profiteering on policies in response to the Covid19 pandemic shock. Due to the existence of group interests, related ministries and
agencies lack inspection and supervision, transparency, responsibility, and loss
of leadership, direction, and management.
Second, there are still some limitations in accessing support packages for
people and businesses. Causes: Complicated procedures, limited access to
information, inappropriate or insufficient support solutions.
Chapter 4
BACKGROUND, PERSPECTIVES, AND SOLUTIONS TO ENSURE
FINANCIAL SECURITY IN VIETNAM TOWARD 2030
4.1. COUNTRY AND INTERNATIONAL CONTEXT IMPACTS ON
VIETNAM'S FINANCIAL SECURITY
4.1.1. Country context
The long-lasting impact of the Covid-19 Pandemic adversely affecting financial
security: (1) The pressure of bad debt increased; (2) Risks from the stock market and
real estate market; (3) Cybersecurity and financial crimes are increasingly complex.
Large economic openness and deeper integration: (1) FTA commitments
have brought great opportunities for Vietnam and, at the same time, have and will
have a certain impact, directly reducing state budget revenues government; (2)
The process of financial liberalization can increase volatility because the
economy will be exposed to international economic shocks directly, or it can also
amplify and exacerbate domestic shocks country.
Trends of digital transformation and financial technology: (1) the legal
framework for the development and supervision of financial - banking services
to meet the requirements of digital transformation; (2) the rapid development and

increase of digital currencies, along with international payment gateways such as
Paypal, Payoneer, Payeer... making foreign exchange transactions and
international money transfers difficult to control influence on the management of
national monetary policy; (3) the financial supervision system will be challenged
in the context of rapidly changing financial relations in the market; (4) challenges
in completing infrastructure, information technology systems and researching
and applying new technologies, building experimental legal frameworks.
4.1.2. International context
Instability and geopolitical conflicts: The Russia-Ukraine war has been causing
negative impacts on the world economy and finance, including Vietnam. (1) the war
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has caused oil prices worldwide to rise for many months, greatly affecting domestic
production and business activities and putting pressure on inflation in 2022. (2) the war
also caused fluctuations in the international monetary system. (3) The war has
disrupted global trade. Many Vietnamese exporters have had their orders stopped, the
supply of raw materials has been disrupted, and payment measures have been delayed,
directly affecting the economy's corporate financial security.
Globalization and market division, the influence of major countries: (1) The
globalization process is facing difficulties and may change direction, and the global
economy may become fragmented. (2) The underground race between countries and
alliances, especially the competition between big countries, is always smoldering. (3)
major countries play a key role in shaping the world order and situation, building the
game's rules, and resolving emerging problems in the region and the world. Vietnam
will become the object of manipulation and competition by major countries in the
world, not only politically but also economically.
4.2. PERSPECTIVES AND SOLUTIONS TO ENSURE THE
FINANCIAL SECURITY OF VIETNAM TOWARD 2030
(1) Ensuring financial security is an essential task in the process of development

and integration. Financial security must firmly ensure national interests; (2) ensuring
financial security must be associated with actively promoting the role of finance in
socio-economic development in the context of a socialist-oriented market economy;
(3) ensuring financial security must enhance the ability to adapt to the context of
increasing political, economic and financial instability in the world; (4) ensuring
financial security must be based on internal resources to be decisive; (5) Ensuring
financial security must be associated with constantly developing a modern financial
system in line with the trend of digital transformation and the industrial revolution 4.0.
4.2.2. Solutions to ensure Vietnam's financial security toward 2030
4.2.2.1. Group of solutions to improve financial stability, soundness, and
efficiency in resource allocation
Solutions to improve the strength of the economy, creating a foundation for
sustainable financial security: (1) improve the efficiency of investment capital,
improve the ICOR index; (2) promote the role of the private economy, adjust
GDP structure; (3) improve labor productivity.
Solutions to control the budget deficit and ensure public debt safety: (1) in
the short term, strengthen the management of state budget revenue; (2) strengthen
and improve the efficiency of state budget expenditure; (3) promote the
restructuring of public debt in a sustainable way to improve debt safety
Solutions to control the growth rate of outstanding loans, control bad debts, and
improve the efficiency of credit: (1) Prioritize and focus on lending to industries and
sectors that encourage and serve products. export, import, and international payment; (2)
Strictly control the growth rate of credit balance, credit quality for potential risk areas.
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Solutions to promote the role of financial development in economic growth:
(1) Improve indicators of accessibility to financial institutions, improve access to
financial products and services for people and businesses; (2) Deeply develop the
financial market, further promote the role of the stock market, so that the stock market

becomes an increasingly important capital mobilization channel of the economy.

4.2.2.2. Group of solutions to improve risk management and prevention

Solutions to improve the efficiency of the national financial supervision model
(1) Need to enhance further the role of the State Bank of Vietnam in the
management and supervision of the financial system; (2) improve supervision
effectiveness for specialized supervisory agencies.
Solutions to improve management capacity, and risk prevention in the field
of Banks
For regulators: The SBV needs to develop a roadmap, steps, and specific
regulations, and at the same time, have a systematic approach to guiding commercial
banks to implement to standardize on all three pillars of Basel. II and followed by Basel
III with the entire commercial banking system, Enhance experience exchange activities.
Banks: Need to research, update knowledge actively, and improve professional
skills; Actively develop plans and roadmaps to upgrade technology infrastructure for
the application of Basel II and Basel III standards; It is necessary to be aware of the
importance of operational risk management, to comply with international standards as
a top task, in addition to the implementation of business targets.
Solutions to improve risk management and prevention in the insurance industry
For state management agencies: It is necessary to soon complete and approve
the development strategy of Vietnam's insurance market to 2030 under the direction of
the Government in Decision 368/QD-TTg. Continue to review, supplement and
complete regulations on state management of insurance business activities to create a
safe, transparent and efficient market. Innovating and perfecting the method of
management and supervision with the market, gradually switching to risk management
and monitoring instead of just implementing compliance monitoring.
For insurance enterprises: strengthen internal control, internal audit, improve
governance capacity, especially risk management according to international standards.
Regular disclosure of information ensures comprehensive information, including

qualitative and quantitative information, to promote transparency, accountability, and fair
competition. Promote the application of information technology in business activities
Solutions to improve management capacity and risk prevention in the securities
sector: (1) Actively improve the legal framework, focus efforts to introduce new
regulations and policies of the Securities Law and other documents provide practical
guidance to support businesses, protect the legitimate rights and interests of investors,
and create a driving force for Vietnam's stock market to develop sustainably; (2)
Completing the development of the stock market development strategy in the 2021-2030
period to shape the long-term goals, solutions and roadmap for stock market
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development; (3) Promote propaganda, strengthen the provision of official information
to help raise awareness, understanding and financial skills of investors, especially
individual investors, thereby contributing to investors participate in the stock market
safely and efficiently; (4) To step up the inspection, inspection and supervision of market
activities, especially the individual corporate bond market; (5) Continue to improve the
quality of corporate governance, risk management of listed companies, public
companies in accordance with international practices

4.2.2.3. Solution for perfecting the mechanism of absorbing and resisting shocks

(1) First of all, it is necessary to perfect the mechanism of monitoring and
forecasting for crisis prevention based on a regular and thorough assessment of the system
of macro and micro safety indicators; (2) Defining specific responsibilities of state
management agencies, establishing coordination mechanisms, issuing appropriate and
timely policies and setting up contingency financial sources (funds) for handling crisis; (3)
At the same time, promote the role of information and communication agencies in
maintaining social stability; (4) Preventing and combating corruption, negatively,
aggressively investigating, prosecuting and publicly adjudicating major corruption cases,

both in the State sector and in the private sector related to policy profiteering.
4.2.2.4. Solutions to establish a digital financial platform and develop modern
financial infrastructure in the context of the industrial revolution 4.0
(1) Researching and applying some core technologies capable of creating strong
breakthroughs, such as artificial intelligence, blockchain, big data, and virtual reality,
facilitating the application of advanced digital technologies in deploying e-finance
towards digital finance. (2) Building smart governance platforms to provide smart
financial services. (3) Deploying an overall information technology system for
management, supervision, transactions, and market operations to automate some tax
management business processes and analyze big data for policy making and
forecasting. (4) Encourage enterprises to invest in technological innovation, research
and development, and business investment in information technology and other
advanced technologies.
CONCLUSION
Financial security has an increasingly important position and role in the
sustainable development of a country. Ensuring financial security creates a stable
macroeconomic environment and ensures political and military security in the
current context of world turmoil and tension. Financial security includes the
following aspects: Ensuring an environment for financial relations to take place
stably and healthily, and resources being allocated effectively and transparently, and
meeting the needs of the actors in the economy; improving the risk management
and prevention capabilities of regulatory agencies and financial institutions; form
and establish mechanisms to absorb or resist shocks.
With a wide and complex connotation, financial security is also affected by
many factors, including factors inside the financial system related to risks belonging
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