Dr Le Minh Nghia, Chairman of the Vietnam Financial Consultants Association, speaks at the forum. (Photo: VNA) Dr Le Minh Nghia, Chairman of the Vietnam Financial Consultants Association (VFCA), highlighted the challenges at a forum on developing the personal finance market in Vietnam organised late last week in Ho Chi Minh City.
The problems faced by individuals in securing their financial future and achieving their financial goals have been exacerbated by unreliable and shallow resources on personal finance available on the Internet, he said.
Findings from a survey conducted recently in Hanoi further supported these concerns, with over 80% of respondents admitting to having little interest and knowledge in personal finance.
As a result, individuals are ill-equipped to make informed financial decisions, lacking essential knowledge in budgeting, saving, investing, and managing debt, he added.
Consequently, people fail to set aside funds for emergencies, secure effective retirement plans, or accumulate wealth sustainably, according to Nghia.
The lack of financial literacy also leaves individuals vulnerable to financial fraud and misconduct, he warned.
“Without a solid understanding of financial concepts and practices, there is an increased risk of falling into the clutches of loan sharks or making premature withdrawals of social security benefits, he said.
“Individuals may also struggle to differentiate between various financial products, such as bank savings and corporate bond purchases or flexible savings products and life insurance products, leading to poor investment decisions,” he noted.
Financial education
Can Van Luc, a member of the National Financial and Monetary Policy Advisory Council, said personal finance planning remains limited as debt management ability, understanding, and knowledge of personal financial planning need improvement.
Luc proposed enhancing financial education such as to include financial education in school curricula and develop targeted programmes for adults, such as workshops, seminars, and online platforms.
These initiatives would provide individuals with practical knowledge and skills to effectively manage their personal finances, he said.
In addition, the Government should play an active role in promoting financial literacy and consumer protection by implementing policies and regulations that ensure ethical practices and protect the interests of consumers, he added.
Nghia said regulatory bodies should strengthen their oversight and review the practices of financial advisors and institutions regularly to ensure compliance with ethical standards.
Experts also recommended incentives and tax benefits be introduced to encourage a savings culture and long-term financial planning.
For instance, tax breaks can be offered to individuals who contribute to retirement plans or dedicate a portion of their income to savings, they noted.
These incentives would motivate individuals to prioritise their financial future and develop healthy saving habits.
Collaboration with employers can also play a significant role in promoting personal financial planning.
Companies can partner with financial institutions to provide financial wellness programmes and education to their employees.
By incorporating financial wellness into the workplace, employers can empower their employees to make informed financial decisions, alleviate financial stress, and foster a more financially secure workforce.
The forum was co-organised by VFCA in cooperation with the HCM City-based Van Lang University./.
VNA
