Viet Nam: Third Financial Sector Program
The Third Financial Sector Program was formulated to create a more diversified, deeper, and more resilient finance sector in Viet Nam. The bank-dominated finance sector could not adequately finance the economy’s investment needs. Thus, increasing the share of nonbank financial markets in financing investment was envisaged to help sustain economic growth with lesser risks. The development of diversified capital markets in the financing was to increase the efficiency of financial intermediation in the economy, more efficiently allocate resources, and create a sound macroeconomic environment that is more resilient to external and regional shocks. The Third Financial Sector Program consisted of two subprograms. Under subprogram 1, the key policy actions were as follows: (i) adopt a new securities law, (ii) set up market information standards, (iii) lay down the institutional framework for securities issuances, (iv) improve consumer protection, and (v) develop regional cooperation. Subprogram 2 focused on developing securities and bond markets; increasing transparency disclosure; strengthening the legal, regulatory, and enforcement frameworks; and strengthening regional cooperation.
This validation covers the project completion report (PCR) of the Third Financial Sector Program. IED overall assessment: Less than successful.