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Outdated law hinders digitalisation of Vietnam’s banking sector

Vietnam's Law on Electronic Transactions dated back to 2005 has proven to be outdated in the era of digital transformation. According to Nguyen Quoc Hung, general secretary of the Vietnam Banking Association, banks and financial intermediaries were facing many difficulties and even legal risks due to the lack of a legal framework about e-transactions in the context that the demand for e-transactions was increasing across all sectors in recent years. Hung said that the draft amended Law on Electronic Transactions was expected to tackle bottlenecks, which were hindering the digital transformation progress of the banking sector. Economic expert Pham Xuan Hoe pointed out that the biggest challenge to the banking sector was the shortage and inconsistency of the legal framework. The Ministry of Information and Communications has sent the draft revised law to the National Assembly.

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