Open finance in vietnam potential, challenges, and lessons learned towards inclusive growth

Abstract

This research examines the concept and practical application of open finance - especially open banking - by reviewing international experiences and evaluating how Vietnam can adopt this model. Based on the 2024 report by the Asian Development Bank (ADB) and other global studies, the paper highlights how open finance can improve access to financial services, boost innovation, and promote inclusive, sustainable growth in the digital era. The innovative aspect of the study is its focus on adapting successful open finance models from countries like the UK, Australia, and Singapore to fit Vietnam’s unique legal, technological, and economic conditions. These international examples show that clear regulations, standard APIs, and strong collaboration between government and private sector are essential for success. While Vietnam has strengths such as a young, tech-savvy population and an active fintech market, challenges remain - especially the lack of a unified legal framework, inconsistent API development, and concerns over data privacy. The study suggests that Vietnam adopt a step-by-step, government-led approach with clear rules and coordinated actions among stakeholders. Using document synthesis and legal framework analysis, the research offers practical policy suggestions to help Vietnam build a secure, efficient, and inclusive open finance ecosystem. Research purpose The study aims to explore the potential, challenges, and international lessons of open finance, with a particular focus on how Vietnam can adopt and implement this model to promote financial inclusion, innovation, and sustainable growth. 1. INTRODUCTION Research motivation The motivation lies in Vietnam’s rapidly digitalizing economy, where open finance presents both opportunities and risks. With global precedents showing its transformative potential, the research seeks to provide insights and recommendations tailored to Vietnam’s legal, technological, and economic context. Research design, approach, and method The study adopts a qualitative research design, using document synthesis and legal framework analysis. It reviews global case studies (UK, Australia, Singapore, India, etc.), evaluates Vietnam’s readiness, and extracts policy lessons applicable to Vietnam’s financial system. Main findings Open finance can significantly improve financial inclusion, efficiency, and innovation in Vietnam. However, the country faces major challenges, including the absence of a unified legal framework, inconsistent API standards, cybersecurity risks, and limited consumer awareness. International experiences highlight the importance of clear regulations, API standardization, strong government leadership, and public–private collaboration. Practical/managerial implications For policymakers, the findings stress the need for a step-by-step roadmap, a comprehensive legal framework, and stronger data protection. For banks and fintechs, the study emphasizes investment in technology, risk management, and partnerships to build an inclusive ecosystem. For consumers, raising awareness and improving financial literacy are key to building trust in open finance.