Does the Regulatory Framework for Financial Innovation Effectively Support Sustainable Development Goals in Vietnam?

Abstract

This research explores the regulatory framework for financial innovation in Vietnam, focusing on its role in supporting the achievement of Sustainable Development Goals (SDGs). With the growing importance of green finance and sustainable economic practices, the study examines how Vietnam’s legal and regulatory structures facilitate or hinder financial innovation aimed at achieving the SDGs, particularly in the banking sector. The methodology includes a comprehensive review of relevant literature, document analysis of legal and regulatory instruments, and expert interviews with key stakeholders in the financial sector. The study identifies key gaps in the existing regulatory framework, such as the lack of clear legal standards for green finance incentives and challenges in fostering digital banking innovations. The findings suggest that while Vietnam has made progress, substantial regulatory reforms are necessary to strengthen financial innovation and align it more closely with sustainable development objectives. The research provides policy recommendations aimed at enhancing the regulatory environment for green finance and digital banking to support the SDGs