Digital Banking Development in Vietnam: Current Status, Challenges and Policy Implications

This paper examines the development of digital banking in Vietnam by synthesizing policy documents, market statistics, regulatory milestones and international literature on digital finance. The study shows that Vietnam’s banking sector has moved rapidly from transaction digitization to a broader digital banking ecosystem driven by mobile banking, QR payments, electronic know-your-customer solutions, biometric authentication, data connectivity and fintech partnerships. In 2024, non-cash payments reached 17.7 billion transactions with a total value of VND 295.2 quadrillion, while the first quarter of 2026 continued to record strong growth in non-cash, internet, mobile and QR-code payments. These developments indicate significant progress toward the targets of the State Bank of Vietnam’s digital transformation agenda. However, Vietnam still faces major challenges related to cybersecurity, data protection, open banking standards, consumer protection, digital inclusion, legacy core systems, talent shortages and regulatory adaptation. The paper contributes a structured analytical framework and proposes policy implications for regulators and banks, emphasizing risk-based regulation, trusted digital identity, interoperable data infrastructure, cyber resilience, responsible artificial intelligence and inclusive digital financial services.