The Deposit Insurance of Vietnam (DIV) has played an important role in the country’s financial safety net by safeguarding the legal rights and benefits of depositors and supporting the stability of the banking and financial system. Over the past 25 years, the DIV has enhanced its strong foundation, aligning with the growing importance of the banking sector in Vietnam’s economic development. Established in 1999 by a decision from the Prime Minister, the DIV is a non-profit, State-owned financial institution with a core mission of protecting depositors’ rights and benefits, as well as promoting the safe and stable growth of the banking and financial system. Its legal framework is anchored by the Law on Deposit Insurance, which was passed by the National Assembly in 2012 and took effect in 2013.

Vietnam’s deposit insurance mechanism is designed to protect deposits in the Vietnamese currency, VND, in various forms, including term deposits, demand deposits, savings accounts, deposit certificates, promissory notes, treasury bills, and other deposit types regulated by the Law on Credit Institutions. Deposit insurance coverage is extended exclusively to individual depositors who hold accounts at insured institutions, including commercial banks, the Cooperative Bank, people’s credit funds, microfinance institutions, and foreign bank branches. These institutions are required to contribute insurance premiums to the DIV to ensure that depositors are reimbursed in the event of an institution’s bankruptcy and closure.

The DIV has been legally enhanced to meet the increasing demands of the financial system. Through various functions, it supports insured institutions with steps including issuing and revoking deposit insurance certificates, conducting off-site supervision and onsite examinations, providing early warnings about potential risks in the operation of credit institutions, participating in the restructuring of troubled institutions, reimbursing insured DIV’s 25-year journey: Trusted guardian of depositors’ rights and the banking system deposits in the event of bankruptcy, and joining the liquidation of failed institutions’ assets. Other key tasks include assessing and collecting premiums, managing investment funds, and raising public awareness of deposit insurance policies to build public confidence through communication programmes.

With its headquarters in Hanoi and eight regional branches across the country, the DIV has actively provided its services to numerous institutions and depositors, contributing to the overall stability of Vietnam’s financial system. As of June 30, 2024, the DIV protected depositors at 1,278 institutions nationwide, including 96 commercial banks and foreign bank branches, 1,177 people’s credit funds, one cooperative bank, and four microfinance institutions. Over the past 25 years, the deposit insurance coverage limit per depositor at an insured institution has been adjusted several times, from an initial limit of VND 30 million to VND 125 million, which fully protects over 92 per cent of insured depositors. In some special cases, the coverage limit may be decided by the Prime Minister, up to the full amount of insurable deposits. These adjustments aim to better protect depositors and ensure social security in various localities. Looking ahead, the Development Strategic Plan for Deposit Insurance through 2025, with a vision towards 2030, has a primary goal of protecting depositors' rights and maintaining the stability of the credit institution system by enhancing the financial and operational capacity of the DIV. The strategic plan also sets out several specific targets by 2030, including reducing the practical payout time frame to 15 working days, conducting outreach efforts to ensure that at least 55% of depositors fully understand the basic deposit insurance policy, and adjusting the coverage scope so that 92% to 95% of total insured depositors are fully protected in line with international practices. Currently, the DIV is actively implementing this strategic plan and contributing to proposals for amending the Law on Deposit Insurance, aligned with the newly amended Law on Credit Institutions (effective from July 2024). Moreover, the DIV has also been fulfilling its assigned roles within the Banking Development Strategy to 2025, with an orientation towards 2030 for the overall banking sector. This solid legal framework and strategic direction will provide the DIV with a concrete foundation to continue its journey of protecting depositors and supporting the growth of a safe and sound banking sector in Vietnam for many years to come.