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Third, disparities in digital infrastructure and connectivity continue to constrain the
inclusive reach of digital finance. Although internet penetration in Vietnam reached
approximately 78% of the population by 2024, connectivity gaps remain significant
between urban and rural areas. Given that around 60% of the population lives in rural or
remote regions, uneven digital infrastructure may limit access to digital financial services
for populations that are the primary targets of financial inclusion strategies.
Finally, financial literacy and digital capability remain important barriers to effective
financial inclusion. While digital financial services have expanded rapidly, the ability of
individuals to safely and effectively use these services remains uneven. Limited
understanding of digital financial products, concerns about fraud, and low levels of trust
in online platforms may discourage certain population groups from adopting digital
financial services. In the context of AI-driven financial systems, algorithmic decision-
making processes may also create concerns regarding transparency, fairness, and
potential bias in credit assessment.
Taken together, these challenges suggest that technological expansion alone cannot
guarantee inclusive financial development. Instead, the effectiveness of financial
digitalization in promoting financial inclusion depends on the alignment of technological
innovation with regulatory capacity, digital infrastructure development, and
improvements in financial capability among users.
6. Policy implications for promoting digital finance and financial inclusion in
Vietnam
Addressing the challenges identified above requires a comprehensive policy
framework that simultaneously supports technological innovation and strengthens
institutional capacity in digital financial governance.
First, strengthening regulatory frameworks for fintech and AI-based financial
services should be a key policy priority. The establishment of a comprehensive regulatory
sandbox would enable financial institutions and fintech firms to test innovative digital
financial products under controlled regulatory conditions. In addition, regulatory
authorities should develop clearer guidelines for AI-based financial services, particularly in
areas such as algorithmic transparency, digital lending practices, and responsible data
usage. These measures would reduce regulatory uncertainty while ensuring financial
stability and consumer protection.
Second, improving cybersecurity governance and financial data protection is
essential for maintaining trust in digital financial systems. As digital financial transactions
continue to expand rapidly, national cybersecurity standards and financial data
governance frameworks must be strengthened. Financial institutions should also be
encouraged to adopt advanced security technologies, including AI-based fraud detection
systems and biometric authentication mechanisms, to enhance the resilience of digital
financial platforms.
Third, reducing digital infrastructure disparities between urban and rural areas
remains critical for achieving inclusive financial development. Expanding broadband
connectivity, improving mobile network coverage, and promoting affordable digital
devices can significantly improve access to digital financial services in underserved regions.
In this context, mobile money services and agent banking models can play an important
role in extending financial services to remote communities where traditional banking
infrastructure is limited.

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