Enhancing capacity to safeguard the financial system

Currently, DIV fully protects more than 92 per cent of individual depositors, the most vulnerable group during banking crises.

The current deposit insurance coverage limit of VNĐ125 million (US$4,800) per depositor per insured institution ensures that the vast majority of depositors, especially those in rural and remote areas, are fully covered.

In the first half of 2025, DIV continued to make significant progress in the implementation of its core operations.

The issuance and revocation of deposit insurance certificates were carried out in strict compliance with regulations, ensuring that 100 per cent of eligible institutions were certified while promptly addressing violations.

Regarding supervision, DIV implemented off-site monitoring of all 1,277 insured institutions, using a system with regularly updated data to detect early signs of potential risks.

On-site examinations were conducted in a professional and in-depth manner for 125 out of 238 institutions under the regular plan and for 50 out of 120 people’s credit funds as requested by the State Bank of Vietnam (SBV), thereby enhancing the operational safety for insured institutions.

For its special control tasks, DIV assigned 34 staff members to directly participate in Special Control Boards at 28 people’s credit funds. Furthermore, the agency closely coordinated with SBV in evaluating and providing feedback on recovery plans and the resolution of credit institutions, particularly those in areas with high potential instability.

Through these activities, DIV has been progressively establishing a proactive line of defense for the financial system, mitigating the risk of systemic failures and reinforcing public confidence in the banking system.

As of the end of June 2025, DIV’s total capital exceeded VNĐ135 trillion, with its Operational Rreserve Fund — a critical financial foundation to ensure payout capability in emergency situations — surpassing VNĐ128 trillion.

Collected deposit insurance premiums reached 51 per cent of the annual plan, up 12.4 per cent year-on-year, demonstrating DIV’s strong financial capacity, effective governance and high adaptability to market volatility.

Although no actual payout obligations were triggered in the first half of the year, DIV completed a payout simulation and issued a Payout Manual for insured institutions to standardise operational procedures, strengthen management capacity and improve readiness for real-life scenarios. This aims to reduce claim settlement time to 30 days from the obligation triggering date, in line with international best practices.

In addition, DIV actively engaged in public policy communication. In the first half of 2025, communication campaigns closely adhered to strategic objectives, particularly those supporting the drafting of the revised Law on Deposit Insurance, thereby building social consensus and raising public awareness.

Improving the legal framework, accelerating digital transformation

In terms of policy development, DIV has proactively coordinated with SBV in drafting and finalising the dossier for the revised Law on Deposit Insurance, which has been included in the 2025 Legislative Program under Resolution 77/2025/UBTVQH15, and scheduled for submission to the National Assembly at its 10th session.

At the same time, the implementation of the Deposit Insurance Development Strategic Plan has advanced through the DIV 2025 detailed plan. A mid-term review is also being conducted to assess performance, draw lessons and set strategic directions for the next phase.

To enable DIV to play a more important role in a dynamic and highly competitive financial and banking system, improving the legal framework is an urgent priority.The amendment of the Law on Deposit Insurance is actively underway and expected to be submitted to the National Assembly in October 2025.

For the rest of the year, DIV aims to comprehensively implement strategic tasks, focusing on finalising the revised Law on Deposit Insurance and submitting it to the National Assembly at the 10th session while preparing all necessary conditions for implementation once approved.

It also plans to organise a mid-term review conference for the Deposit Insurance Development Strategic Plan and strengthen supervision, examination and participation in supporting and resolving weak insured institutions placed under special control.

The institution will also participate in the governance and management of people’s credit funds placed under special control at the request of SBV regional branches, while providing feedback on resolution and restructuring plans for weak insured institutions as requested by SBV.

DIV expects to complete amendments and supplements to the Regulation Framework for coordination and information exchange between SBV regional branches and DIV branches.

Moreover, it will develop a flexible plan for investing temporarily idle funds in compliance with law, ensuring safety and efficiency; formulate and implement a plan to purchase long-term bonds from credit institutions receiving compulsory transfers of commercial banks placed under special control; and introduce procedures for obtaining special loans from SBV in cases where DIV’s Operational Reserve Fund is insufficient to fulfil payout obligations under approved bankruptcy plans for credit institutions.

Other tasks include effectively communicating the deposit insurance policy and laws; implementing comprehensive solutions under the Scheme for Deposit Insurance Policy Communication; and executing the comprehensive communication plan for the revision of the Law on Deposit Insurance in line with set timelines and requirements.

At the same time, DIV will accelerate its digital transformation in accordance with the guidelines and orientations of the Party, Government and SBV, and with the objectives of its Information Technology Development Plan to 2030.

It will continue to maintain and expand international cooperation, actively seeking support and experience sharing from global deposit insurers to enhance its capacity, operational efficiency and reputation both regionally and internationally.

With a strong financial foundation, professional operations and a determination for bold innovation, DIV is upholding its role as a safety shield for depositors and a pillar of stability for the national banking system.

This strengthens public confidence in the resilience of the financial system while safeguarding citizens’ financial security, maintaining systemic discipline, limiting the risk of chain failures and contributing to the stable and sustainable development of the financial and banking sector. — VNS