With the economy expanding more than 7% in 2024, Vietnam’s financial sector is transforming rapidly, powered by digital adoption, artificial intelligence (AI), financial inclusion and biometric security.

This strong economic performance reflects the country’s robust fundamentals — from trade surplus to domestic consumption — despite a global environment marked by volatility and fragmentation. Inflation was contained just below 4%, higher than in prior years, but still within the central bank’s policy range. Stability was maintained not by chance, but through sound fiscal and monetary discipline.

This macroeconomic foundation has provided financial institutions with clarity and capacity to accelerate transformation — moving from aspiration to action. However, transformation is neither easy nor linear. It requires structural change, cultural alignment and long-term execution. Institutions are navigating this complexity with purpose, precision and resolve.

Five themes are shaping the next chapter of the banking and financial services sector in Vietnam. Each is becoming increasingly central to how institutions must think, act and lead.

AI moves from pilot to production

In 2024, the industry shifted from tactical to strategic deployment of artificial intelligence. AI is now embedded into core banking operations — streamlining onboarding, fraud detection, credit decisioning, collections and customer engagement.

Techcombank exemplified this shift with its AI-based analytics platform that empowers relationship managers with actionable insights, improving lead allocation, sales productivity and contributing over VND 100 billion ($3.9 million) in operating income. Meanwhile, BIDV applied AI in its private banking and mortgage operations, introducing risk-based investment advisory and AI-driven property valuation and loan decisioning to improve speed, accuracy and customer satisfaction.

Personalisation from segmentation to contextual service

Customers today expect their banks to understand not just who they are, but what they need in real time. Vietcombank responded by launching an upgraded mobile app offering a customisable interface and AI-powered financial management tools. It introduced FacePay for seamless, secure transactions, and integrated with nearly 2,000 partners. With 13 million users and a 95% customer satisfaction score, Vietcombank has turned personalisation into measurable engagement and loyalty.

SME banking from exclusion to inclusion through digital underwriting

Small and medium-sized enterprises remain the backbone of Vietnam’s economy, yet many face financing challenges. HDBank addressed this with a digital-first, AI-driven SME lending ecosystem. In 2024, it served over 60,000 SMEs — 91% of which are small businesses — growing its SME loan book by 40% while keeping non-performing loans at just 0.56%, the lowest in the sector.

Meanwhile, VietinBank strengthened its SME banking platform, eFast, by integrating advanced digital capabilities that support end-to-end services, from onboarding to lending and cash management. The platform leverages customer data and analytics to offer tailored financial solutions to SMEs, enabling them to better manage working capital and access relevant credit lines, all within a seamless digital interface.

This combined model demonstrates how inclusive growth and technological innovation can converge to create both financial access and sustainability.

Embedded finance from channel to contextualised platforms

Vietnamese institutions are increasingly embedding financial services into everyday digital experiences. TPBank led with its application programming interface (API) integrations into enterprise resource planning systems, allowing corporate clients to automate financial operations with real-time control and predictive analytics. This contributed to a 200% revenue increase and a 300% jump in current account and savings account (CASA) ratio, proving the impact of contextual finance.

VietinBank complemented this with its open banking framework, deploying over 300 public APIs and integrating 418 partners — enabling scalable, secure service delivery across platforms.

ESG integration from alignment to execution

The environmental social and governance agenda has become embedded in strategic decision-making. OCB exemplified this transformation by allocating nearly 9% of its lending portfolio to green finance — double the industry average — while promoting sustainable investment and product innovation in line with the United Nations Sustainable Development Goals.

Such leadership is vital to aligning Vietnam’s financial institutions with its national target of net-zero emissions by 2050.

Cybersecurity and biometric regulation from optional to mandatory trust infrastructure

Digital identity has become central to secure banking. In 2024, the State Bank of Vietnam (SBV )introduced a two-phase biometric verification mandate, now extending to all digital banking users. Banks like Techcombank rose to the challenge, launching a cloud-based electronic know your customer (eKYC) system with AI-driven biometric authentication. The system processed 400,000 transactions daily, achieved a 99% success rate against deepfakes and supported a 15% growth in customers and 20% revenue growth.

The rollout, backed by the Digital Technology Industry Law, reflects Vietnam’s intent to build digital trust by design — through law, technology and execution.

Industry consolidation from fragmentation to focus

The Vietnamese financial sector is undergoing structural consolidation, with the State Bank of Vietnam playing an active role in strengthening institutional resilience.

Notable mergers and acquisition, M&A activity in 2024 included the planned acquisition of struggling lender CBBank by Vietcombank, pending final regulatory approval. This deal is part of SBV’s broader strategy to rehabilitate weaker institutions by aligning them with stable, well-capitalised banks. Similarly, MBBank’s takeover of the newly licensed Oceans Bank — formerly a small, underperforming bank — demonstrates strategic market repositioning and resource consolidation.

These transactions go beyond size. They are about enhancing governance, service quality and digital capabilities, ensuring banks are fit not only for local competition but regional expansion.

However, consolidation is complex. Integrating culture, systems and customer experiences must be carefully managed to preserve trust. Done well, it will drive sustainable growth and elevate the global competitiveness of Vietnam’s banking industry.

Strategic outlook for digital banking growth and leadership

Vietnam is poised to become one of the most compelling digital banking markets globally, underpinned by three pillars — demographics, regulation and infrastructure.

With over 70% of its population under 40 and mobile internet usage above 80%, Vietnam’s digital DNA is robust. Yet, nearly 80% of the population remains unbanked or underbanked — a gap that digital channels are best placed to close.

The regulatory landscape has also evolved. SBV’s biometric mandate and the Digital Technology Industry Law provide robust safeguards and clear governance for digital innovation, data protection and AI deployment.

Digital banks like Cake have shown that it is possible to achieve both financial inclusion and profitability. The market remains underpenetrated, offering room for growth and differentiated strategies — from micro-lending and lifestyle banking to AI-powered platforms and embedded finance models.

The strength of Vietnam’s financial services industry is no longer measured by products or balance sheets alone. It is defined by its capacity to lead with clarity, execute with discipline and transform with courage. Institutions that invest in trust, talent, technology and transparency will shape the future not just of banking but of economic progress.