Communication activities to raise public awareness on deposit insurance play an important role in contributing to building an effective deposit insurance system, increasing depositors' confidence in the deposit insurance policy and the banking and financial system. This is also an important goal set by the Deposit Insurance of Vietnam (DIV) in the coming time in the context of the new normal, overcoming the effects of the Covid-19 pandemic.

In Vietnam, the deposit insurance scheme was officially initiated in 1999 and went into operation in May 2000. The Law on Deposit Insurance was promulgated on June 18, 2012, and took effect on January 1, 2013. Up to now, after ten years of its operation, it is essential to review, supplement and update the Law on Deposit Insurance and its relevant regulations to improve the efficiency and contribution of deposit insurance operations and promote the better protection of depositors’ rights and interests.

Deposit insurance policy plays an important role in enhancing public confidence in the banking and financial system. Raising public awareness of deposit insurance policy contributes to promoting the process of national financial information dissemination.

The intense outbreaks of the Covid-19 pandemic since late April 2021 amidst new strains of coronavirus spreading all over the country have had a profound impact on all aspects of social life and activities of agencies and units. Accordingly, the examination conducted by agencies and units in general and the Deposit Insurance of Vietnam (DIV) in particular, which has its specialized features, has been affected considerably.

According to the Decision No. 32/2021/QD-TTg dated October 20, 2021 of the Prime Minister, on December 12, 2021, the coverage limit on deposit insurance was increased to 125 million dongs per individual per insured institution (the previous limit was 75 million dongs). The periodic increase of the coverage limit helps better protect the legitimate rights and interests of depositors.

Reality has proven that microfinance activities continue to affirm their essential role in enhancing the level of access to financial services of the poor and low-income populations, making a significant contribution to implementing the policy of hunger eradication, poverty alleviation, and restriction of usury, especially in rural and remote areas. Therefore, the Government needs to continue effectively implementing solutions to build and develop microfinance activities, including implementing deposit insurance policies at these institutions, thereby mobilizing and expanding the scale of capital sources for microfinance institutions.

One of the solutions for a comprehensive legal framework stated in Decision 689/QD-TTg dated June 8, 2022 approving the Project “Restructuring the system of credit institutions (CIs) in association with bad debts settlement in the period of 2021 - 2025” (Decision 689) is researching, reviewing, amending and supplementing the Law on Deposit Insurance (Law on DI) and relevant legal documents. In particular, functions and tasks of the Deposit Insurance of Vietnam (DIV) participating in restructuring weak CIs need to be reviewed and completed.

Deposit insurers operate within an ever-evolving global financial system and hence are subject to change themselves. This article explores some of the key dynamics, some emerging issues which may affect the activities of deposit insurers in the near future and the situation in Vietnam.

In the context of the complicated development of the Covid-19 epidemic, right from the beginning of the year, the entire system of Deposit Insurance of Vietnam (DIV) has made great efforts and expeditiously implemented the work plan, sticking to monitoring the key tasks of the banking sector in 2022 and the Government's policy contents to support socio-economic recovery and development; focus on synchronously implementing deposit insurance professional activities in order to well protect the legitimate rights and interests of depositors.

One of the remarkable highlights of the deposit insurance (DI) policy in 2021 is that the Prime Minister decided to increase the DI coverage limit to 125 million dongs per depositor at a credit institution. This is one factor that directly impacts the rights of depositors when insured institutions become insolvent or bankrupt. Still, at the same time, it also plays an important role in maintaining and enhancing market principles.