Home » 4 weaknesses in financial supervision in Vietnam

4 weaknesses in financial supervision in Vietnam

The financial monitoring system in Vietnam still reveals many limitations, not yet on risk-based supervision …
4 weaknesses in financial supervision in Vietnam

Vietnam financial market has hidden risks between banking, securities, insurance …


Many experts and managers have frankly acknowledged the limitations of the financial monitoring system in Vietnam at the seminar – Vietnam Finance 2013 exhibition with the theme “Strengthening national financial supervision: Main solution books and technology ”took place August 27, an annual event organized by the Ministry of Finance in collaboration with International Data Group (IDG Vietnam).

Mr. Ha Huy Tuan, Vice Chairman of the National Financial Supervisory Committee, said that, looking at the developments in Vietnam’s financial market, it can be seen that, after more than two decades of reform, there has been considerable progress. However, there are still many risks, especially in the current context, that have the potential of cross-risks between the banking sector, securities, insurance and systemic risks from environmental instability. macroeconomic field as well as from external shocks.

According to Mr. Tuan, in fact, the financial monitoring system mainly focuses on micro-monitoring of safety, based on the tendency to monitor compliance rather than risk-based monitoring, in the context of The financial market is developing rapidly and complexly in both size and structure, with financial activities intermingling between banking, securities, insurance and macroeconomic environments. dynamic.

Given that, together with the development process of the economy, in the past years, although facing many difficulties and challenges, the financial sector continues to have fast and steady development steps in many aspects. National financial security is guaranteed, however, Deputy Minister of Finance Pham Sy Danh also frankly acknowledges that financial supervision in Vietnam is showing many drawbacks.

Firstly, the system of financial monitoring tools is in the process of completion, it is necessary to continue to adjust to meet the requirements arising from the integration process and expand trade and investment relations. with outside. The monitoring mainly stops at compliance monitoring, while effective monitoring and early warning monitoring need to continue to be completed.

Secondly, the system of public financial monitoring indicators has not yet covered all types of related risks, the information system for monitoring is still incomplete, fragmented and not updated. regularly. Statistics and accounting in some cases have not followed international standards, so it is difficult to compare when assessing the level of risk.

Thirdly, the monitoring of legal compliance in the stock market in some contents has not yet covered all the new issues arising in practice. Monitoring activities, assessing the financial performance of state-owned enterprises still have some points to continue to improve.

Fourthly, the sharing of information within each sector as well as between authorities has limitations. The structure of the monitoring system is relatively complete, but there is a lack of effective coordination mechanisms among departments, especially at the macro and interdisciplinary levels.

According to Deputy Minister Danh, in order to ensure effective monitoring, there is a need to gather 5 core and basic requirements: building a legal framework for full and complete macro financial supervision; ensuring effective coordination mechanisms between important agencies and ministries to supervise; the presence of a system of criteria and indicators of macro financial supervision covering the contents and subjects to be monitored; to formulate an information data system in service of full, accurate and timely macro-financial supervision; ensure transparency and publicity in the implementation of macro financial supervision.

Leave a Reply

Your email address will not be published.

Online valuation

    Full name (*)
    Phone (*)
    Email (*)
    Description of assets to be assessed

    Upload file size should not be> 10MB.