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 ConsultantsAssociation (VFCA), highlighted the challenges at a forum on developing thepersonal finance market in Vietnam organised late last week in Ho Chi MinhCity.
The problems faced by individuals in securing their financialfuture and achieving their financial goals have been exacerbated by unreliableand shallow resources on personal finance available on the Internet, he said.
Findings from a survey conducted recently in Hanoi furthersupported these concerns, with over 80% of respondents admitting to havinglittle interest and knowledge in personal finance.
As a result, individuals are ill-equipped to make informedfinancial 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, accordingto Nghia.
The lack of financial literacy also leaves individuals vulnerableto financial fraud and misconduct, he warned.
“Without a solid understanding of financial concepts andpractices, there is an increased risk of falling into the clutches of loansharks or making premature withdrawals of social security benefits, he said.
“Individuals may also struggle to differentiate between variousfinancial products, such as bank savings and corporate bond purchases orflexible savings products and life insurance products, leading to poorinvestment decisions,” he noted.
Financial education
Can Van Luc, a member of the National Financial and MonetaryPolicy Advisory Council, said personal finance planning remains limited as debtmanagement ability, understanding, and knowledge of personal financial planningneed improvement.
Luc proposed enhancing financial education such as to includefinancial education in school curricula and develop targeted programmes foradults, such as workshops, seminars, and online platforms.
These initiatives would provide individuals with practicalknowledge and skills to effectively manage their personal finances, he said.
In addition, the Government should play an active role inpromoting financial literacy and consumer protection by implementing policiesand regulations that ensure ethical practices and protect the interests ofconsumers, he added.
Nghia said regulatory bodies should strengthen their oversight andreview the practices of financial advisors and institutions regularly to ensurecompliance with ethical standards.
Experts also recommended incentives and tax benefits be introducedto encourage a savings culture and long-term financial planning.
For instance, tax breaks can be offered to individuals whocontribute to retirement plans or dedicate a portion of their income tosavings, they noted.
These incentives would motivate individuals to prioritise theirfinancial future and develop healthy saving habits.
Collaboration with employers can also play a significant role inpromoting personal financial planning.
Companies can partner with financial institutions to providefinancial wellness programmes and education to their employees.
By incorporating financial wellness into the workplace, employerscan empower their employees to make informed financial decisions, alleviatefinancial stress, and foster a more financially secure workforce.
The forum was co-organised by VFCA in cooperation with the HCM City-basedVan Lang University./.
VNA
