Governance and trust to drive Vietnam’s financial sector growth

Banks and insurers face pressure to strengthen oversight and rebuild market confidence.

Governance gaps and trust issues are expected to shape the outlook of Vietnam’s financial sector, as institutions face increasing pressure to meet rising expectations from customers and international investors, according to industry leaders.

Speaking at a panel discussion during the Asian Banking & Finance and Insurance Asia 2026 Summit – Vietnam on March 31, in Ho Chi Minh City, panelists highlighted the importance of trust and practical governance in a rapidly expanding market.

Trust is expected to remain a key focus, particularly in insurance distribution.

Phu Nguyen, Founder & Chairwoman of Affina Vietnam Co., Ltd., said customer confidence underpins demand for insurance products.

“If you don’t have trust, they don’t buy,” she said, noting that rapid expansion of distribution channels had previously led to mis-selling issues when products were not properly explained.

Governance standards are also likely to play a larger role in attracting foreign capital with Will Ross, Chief Marketing & Distribution Officer at Dragon Capital Group Limited, saying investors are unlikely to compromise on governance despite Vietnam’s strong growth.

“Investors want the growth that a developing market represents, but they also demand transparency, trust, and credibility of a developed market,” he told attendees at the World Hotel Saigon.

As the sector expands, institutions are expected to focus on embedding governance into day-to-day operations.

Douglas Matheson, Chief Risk and Compliance Officer at HSBC Vietnam, said governance frameworks must be practical and aligned with business realities.

“The real objective is to make sure that governance fits with the real world,” he said, adding that closer coordination between risk teams and frontline units will be important.

Panelists also pointed to the need for stronger internal transparency and communication with Matheson noting how institutions respond to issues will define trust.

“We cannot expect everything to go right all the time. Making sure that there is sufficient transparency is critical,” he said.

Data governance is emerging as another priority as financial institutions manage customer information across multiple channels.

Nguyen highlighted the importance of clarity in data use, citing that “85% of the customer will stay with you if they know clearly how you process their data.”

In addition, firms are expected to review incentive structures, particularly in sales functions, to better align performance with long-term outcomes.

Nguyen said metrics such as renewal rates should take precedence over first-year sales, whilst Ross pointed to broader structural issues.

“Often they start from the top-down, from the way the objectives are being set for that sales team,” he said.

Overall, governance is expected to become a key differentiator in Vietnam’s financial sector, influencing customer trust, operational resilience, and the ability to attract investment.