Viet Nam: Financial Sector Development and Inclusion Program

Finance - Finance sector development - Inclusive finance - Insurance and contractual savings - Money and capital markets

1. Financial sector stability increased.

2. Nonbank financial sector deepened.

3. Financial inclusion promoted

International NPL resolution expert (Individual Consultant 4 person-months). The expert will support the government's efforts to increase financial stability. The expert will brief SBV's drafting group on international experience on NPL resolution and problem bank resolution, including the likely structure of an enabling legal and regulatory framework, as well as solutions and sound resolution processes. The expert will review the draft law package and provide comments and recommendations to strengthen the documents in line with international practices. Finally, the expert will lead two workshops to share international experience on NPL and problem bank resolution with stakeholders.

National NPL resolution expert (Individual Consultant 4 person-months). The expert will support the government's efforts to increase financial stability. The expert will provide support to the international NPL expert with regard to research of current laws covering NPL and problem banks, as well as any associated laws which may impact of the resolution of either. The expert will also provide translation and logistical support.

International capital market expert Taxes and fees (Individual Consultant 2 person-months). The expert will support the government's efforts to deepen the capital market. The expert will analyze and prepare a report on the current friction costs in the domestic market in two discrete areas; government bonds, and all other securities. For the purpose of this assignment, friction costs will include taxes, regulatory compliance costs, fees for participation, and any other unusual costs that serve to deter investors. If necessary, coats can be grouped by category of investor (e.g. domestic vs. foreign, retail vs. institutional investors).

National capital market expert Taxes and fees (Individual Consultant 2 person-months). The expert will support the government's efforts to deepen the capital market. The expert will provide support to the international capital market tax expert with regard to research of current taxes, regulations, practices and conventions. The expert will also provide translation and logistical support.

International securities market expert (Individual Consultant 3 person-months). The expert will support the government's efforts to deepen the capital market. The expert will review and assess the current Law on Securities law, its implementing regulations, and any proposed draft of an amended law on Securities. The expert will contrast the proposed amendments, and propose amendments to broaden and deepen the Vietnamese capital market.

International derivatives market expert (Individual Consultant 2 person-months). The expert will support the government's efforts to deepen the capital market. The expert will design, develop, and deliver training to market stakeholders and regulators on the following topics: i) derivatives products and their definitions, ii) pricing methodologies and structures, iii) usage and applications in the financial sector, iv) pre-conditions required to support the introduction of derivatives to Viet Nam, including the introduction of short-term benchmark rates, ISDA legal opinions, etc., v) the role of OTC markets, exchange and clearing houses, vi) accounting and taxation applied to derivatives products; and vii) recent regulatory developments in the global OTC derivatives markets.

International insurance regulatory expert (Individual Consultant 3 person-months). The expert will support the government's efforts to build an institutional investor base. The expert will provide an assessment on the capital level of life insurance companies in consideration of their size, operation and risk profile, identify the gaps and impediments to the adoption of risk-based capital in Viet Nam, and propose an implementation roadmap and action plan provide necessary trainings for staff of ISA on RBC.

International Fintech expert (Individual Consultant 2 person-months). The expert will support the government's efforts to broaden financial inclusion. The expert will conduct an assessment of the current Fintech ecosystem including the regulatory environment, business landscape, sub-sectors, market trends, existing impediments, opportunities and risks. The expert will then propose recommendations to create an enabling environment for Fintech and how to regulate the sector.

International microfinance expert (Individual Consultant 2 person-months). The expert will support the government's efforts to broaden financial inclusion. The expert will assess the training needs of microfinance practitioners (e.g. boards, management, and staff) on governance, accounting, information systems, credit management, risk management, regulatory and reporting requirements, and other practices needed for a sound microfinance operation. The expert will then design and deliver training programs based on SBV's prudential regulations and provide mentorship support to meet the specific prudential requirements of the MFI operators, as necessary.

International micro-insurance expert (Individual Consultant 1 person-month). The expert will support the government's efforts to broaden financial inclusion. The expert will assess the training needs of the sociopolitical organizations engaged in micro-insurance and develop appropriate training modules and materials based on the related Prime Minister's Decision and MOF-ISA's regulations of micro-insurance operations by sociopolitical organizations.

National project coordinator (Individual Consultant 6 person-months). The national project coordinator will work closely with resident mission staff to organize meetings, training workshops and events, and liaise with government counterparts and different stakeholders. In addition, the national project coordinator will arrange travel and logistics for missions of international consultants and the ADB project team, translate any reports, briefs, and other material as requested by the consultants, ADB project team or government counterparts, and will assist consultants and the ADB project team complete relevant research.