Vietnam’s Business & Economics Research Conference in HCM City discussed financial development and inequality in emerging markets (Photo courtesy of HCM City Open University)HCM City (VNS/VNA) - Financial development with a focus onfinancial inclusion for people of all incomes will be the key for stableeconomic development, Vice Rector of HCM City Open University Nguyen Minh Hasaid at Vietnam’s Business & Economics Research Conference that ends on July24.
Vietnam is witnessing a strong economic growth within the Asia Pacific region,Ha said, adding that it is committed to undertaking economic reforms tointegrate into the regional economy.
“Financial development with a particular focus on financial inclusion (oraccess to finance by the poor) will be key,” he said.
When it comes to economic reform and restructuring, the issues of inequalitybecome very important for consideration by policymakers, he added.
Dr Vo Hong Duc, head of business and economics research group at HCM City OpenUniversity, told Vietnam News that during financial development,people who can take advantage of opportunities can become rich, and those whofail to grasp those opportunities remain poor, leading to an income gap.
While it is important to develop the economy, life for everyone needs to bebetter, he said.
Policymakers should issue social policies that reduce income inequality andallow everyone to get access to the benefits of economic development, he added.
Although the Government has tried to reduce inequality, there are still manythings to do, according to Duc.
Income inequality remains high, especially between urban and rural areas.
According to Mark Loo of the Concordia University of Edmonton in Canadafintechs could promote financial inclusion in an era of digital transformation.
Many people in ASEAN still live in marginalized areas that have difficulty inaccessing banking facilities.
Fintechs manage a broad range of financial services to sustain livelihoods,build assets and manage risks.
They offer opportunities to enhance financial inclusion as more people canaccess digital banking with increasing internet penetration.
Ha Thi Thieu Dao, dean of the International Economics Faculty at BankingUniversity in HCM City, said: “Microfinance programmes being carried outthroughout the country could take an important role in reducing inequality andincreasing access to capital sources for low-income people.”
Institutes which offer these programmes provide loans or receive people’ssavings, Dao said, adding that they also provide services which help empowerwomen.
Microfinance programmes can also remove the need for low-income consumers touse “black credit” loans on the black market, she said.
Researchers at the Dublin Institute of Technology and the University ofLimerick in Ireland said that microfinance had made significant contributionsin developing countries such as Bangladesh, India, and Malaysia.
In developing countries, microfinance has become a useful tool for povertyreduction and enhancement of economic growth and development strategies.
Dao suggested that the Government should create a more detailed legal frameworkfor microfinance institutions to operate.
Vietnam’s Business & Economics Research Conference was held on July 22-24by HCM City Open University. Academics, researchers, practitioners andpolicymakers discussed ongoing research on a wide range of theoretical andempirical issues related to sustainability of economic development in emergingmarkets, especially for Vietnam.-VNS/VNA
Vietnam is witnessing a strong economic growth within the Asia Pacific region,Ha said, adding that it is committed to undertaking economic reforms tointegrate into the regional economy.
“Financial development with a particular focus on financial inclusion (oraccess to finance by the poor) will be key,” he said.
When it comes to economic reform and restructuring, the issues of inequalitybecome very important for consideration by policymakers, he added.
Dr Vo Hong Duc, head of business and economics research group at HCM City OpenUniversity, told Vietnam News that during financial development,people who can take advantage of opportunities can become rich, and those whofail to grasp those opportunities remain poor, leading to an income gap.
While it is important to develop the economy, life for everyone needs to bebetter, he said.
Policymakers should issue social policies that reduce income inequality andallow everyone to get access to the benefits of economic development, he added.
Although the Government has tried to reduce inequality, there are still manythings to do, according to Duc.
Income inequality remains high, especially between urban and rural areas.
According to Mark Loo of the Concordia University of Edmonton in Canadafintechs could promote financial inclusion in an era of digital transformation.
Many people in ASEAN still live in marginalized areas that have difficulty inaccessing banking facilities.
Fintechs manage a broad range of financial services to sustain livelihoods,build assets and manage risks.
They offer opportunities to enhance financial inclusion as more people canaccess digital banking with increasing internet penetration.
Ha Thi Thieu Dao, dean of the International Economics Faculty at BankingUniversity in HCM City, said: “Microfinance programmes being carried outthroughout the country could take an important role in reducing inequality andincreasing access to capital sources for low-income people.”
Institutes which offer these programmes provide loans or receive people’ssavings, Dao said, adding that they also provide services which help empowerwomen.
Microfinance programmes can also remove the need for low-income consumers touse “black credit” loans on the black market, she said.
Researchers at the Dublin Institute of Technology and the University ofLimerick in Ireland said that microfinance had made significant contributionsin developing countries such as Bangladesh, India, and Malaysia.
In developing countries, microfinance has become a useful tool for povertyreduction and enhancement of economic growth and development strategies.
Dao suggested that the Government should create a more detailed legal frameworkfor microfinance institutions to operate.
Vietnam’s Business & Economics Research Conference was held on July 22-24by HCM City Open University. Academics, researchers, practitioners andpolicymakers discussed ongoing research on a wide range of theoretical andempirical issues related to sustainability of economic development in emergingmarkets, especially for Vietnam.-VNS/VNA
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