Digital economy and fintech see growth amid COVID-19

The Prime Minister’s Economic Advisory Group met with the local fintech firm MoMo in HCM City on Monday.

Digital economy and fintech see growth amid COVID-19
A member of the Prime Minister’s Economic Advisory Group scans a QR code with his MoMo e-wallet at a machine in HCM City on Monday. — Photo courtesy of MoMo

Nguyen Ba Diep, co-founder and vice president of the firm, said: “The number of e-wallet users is growing fast after the pandemic, due to the popularity of contactless payments.”

Diep told Việt Nam News: “We are building big data systems and making MoMo a ‘super app’ that helps partners understand users and also give them a full payment and financial ecosystem.”

AppotaPay, a subsidiary of Appota Group, announced it had been licensed as a payment intermediary by the State Bank of Vietnam (SBV). 

As a subsidiary of Appota Group – an entertainment, game and media firm with 55 million users – AppotaPay could now operate electronic wallet services, electronic payment gateways, and fee collection services, said the firm.

AppotaPay was the 39th non-bank organisation licensed by the central bank to operate in the payment service industry.

AppotaPay’s representative also said: "The pandemic has accelerated digital transactions in the country and helped the local electronic wallet market to grow," adding: "AppotaPay will make cashless payments more popular in Vietnam."

While meeting with MoMo, Truong Van Phuoc, member of the group, said there was a connection between traditional financial services and technology, adding: “The micro-credit model is a potential segment for e-wallets.”

 

Phuoc said finance companies offer very high interest rates for this type of lending, so there’s a need for a legal corridor for fintech companies to ease the burden for borrowers.

Diep from MoMo said there needed to be a legal mechanism for innovative businesses like MoMo, adding such support will help encourage local fintech firms to develop through supporting mechanisms for tax exemptions and reductions.

Nguyen Duc Kien, head of the Prime Minister’s Economic Advisory Group said: "We promise to always listen not only to MoMo but also businesses operating in the fintech sector, so that we can form a reasonable and harmonious business environment."

Earlier, at a national seminar on the digital economy in Vietnam, Tran Thi Lan Huong, senior public administration expert from the World Bank, said: “Six out of ten of the largest enterprises in the world today are specialising in digital and data technologies. The figure shows great opportunities and potentials for fintech businesses in Vietnam.” 

According to forecasts, the digital economy in Vietnam is likely to reach US$43 billion by 2025. Hanoi and HCM City were also rated among seven major cities with fast digital economic development in the Southeast Asian region. VNS

The future of banks: becoming digital technology firms

The future of banks: becoming digital technology firms

Commercial banks could become technology firms by cooperating with technology firms, including telcos, to create a new growth space.

Digital economy boosts Vietnam’s economic growth

Digital economy boosts Vietnam’s economic growth

A study of Google and Temasek from Singapore reports that Vietnam’s digital economy reached 3 billion USD in 2015 and 9 billion USD in 2019, and will reach 30 billion USD in 2025. 

 
 

Other News

.
17th CAEXPO to benefit China-Vietnam cooperation
17th CAEXPO to benefit China-Vietnam cooperation
BUSINESSicon  23/11/2020 

China and Vietnam are friendly neighbors connected by mountains and rivers, and have achieved fruitful results in the sustained economic and trade cooperation. 

'Ghost' restaurants flourish in Ho Chi Minh City
'Ghost' restaurants flourish in Ho Chi Minh City
BUSINESSicon  23/11/2020 

Without tables, chairs or waiters, "ghost" restaurants are flourishing in Vietnam, serving only online customers.

Smarter logistics will benefit Vietnam: experts
Smarter logistics will benefit Vietnam: experts
BUSINESSicon  23/11/2020 

Smarter logistics are key for Vietnam to advance in the global value chain amid the fourth industrial revolution and the COVID-19 pandemic, experts told the Vietnam Business Summit 2020 held in Hanoi recently.

HCMC real estate market poised to recover next year
HCMC real estate market poised to recover next year
BUSINESSicon  23/11/2020 

The real estate market in HCMC has seen signs of recovery since August and is expected to see a strong rebound during the upcoming traditional Lunar New Year holiday and next year, according to the HCMC Real Estate Association (HoREA).

Thousands of Mercedes-Benz recalled in Vietnam over defective airbags
Thousands of Mercedes-Benz recalled in Vietnam over defective airbags
BUSINESSicon  22/11/2020 

Some 3,200 Mercedes-Benz cars in Vietnam have been found to have problems with Takata airbags, according to the Vietnam Register.

Binh Dinh-based Phu Cat airport proposed to become international one
Binh Dinh-based Phu Cat airport proposed to become international one
BUSINESSicon  22/11/2020 

The Binh Dinh government has written to the Ministry of Transport and the Civil Aviation Authority of Vietnam proposing turning Phu Cat Airport into Phu Cat International Airport.

Vietnam, Oman to foster bilateral trade
Vietnam, Oman to foster bilateral trade
BUSINESSicon  22/11/2020 

The two-way trade turnover increased sharply from US$117 million in 2017 to US$200 million in 2019.

Ministry working to promote growth of support industries
Ministry working to promote growth of support industries
BUSINESSicon  22/11/2020 

The Ministry of Industry and Trade (MoIT) has introduced a range of measures to boost the growth of support industries in a bid to promote the engagement of local companies in production chains.

What does the 'rescue' of Vietnam Airlines reveal?
What does the 'rescue' of Vietnam Airlines reveal?
FEATUREicon  22/11/2020 

The national airline of Vietnam finally saw "the light at the end of the tunnel" when the National Assembly agreed with the Government's proposal for solutions to help Vietnam Airlines overcome difficulties caused by the Covid-19 pandemic.

Electronics industrial clusters to be piloted
Electronics industrial clusters to be piloted
BUSINESSicon  22/11/2020 

The Ministry of Planning and Investment has instructed localities to review and report on the development of industrial zones with investment projects in the electronics industry with a scale starting from US$20 million.

Real estate inventories see decline: ministry
Real estate inventories see decline: ministry
BUSINESSicon  22/11/2020 

Inventories in the real estate market have been on the decrease thanks to increasing liquidity, according to the Ministry of Construction (MoC).

Up to 16,000 foreigners buy housing in Vietnam in last five years
Up to 16,000 foreigners buy housing in Vietnam in last five years
BUSINESSicon  21/11/2020 

Between 14,000 and 16,000 foreigners have bought housing in Vietnam since July 2015, mostly from China, the Republic of Korea, Japan, Taiwan (China), and Singapore, the HCMC Real Estate Association (HoREA) estimates.

Global media positive about Vietnam’s growth despite COVID-19
Global media positive about Vietnam’s growth despite COVID-19
BUSINESSicon  21/11/2020 

A number of regional and global news agencies have quoted data from international research institutes and organisations as saying that Vietnam’s economy is on track to grow despite the impact of COVID-19.

Challenges and opportunities from Covid-19 for Vietnam's M&A market
Challenges and opportunities from Covid-19 for Vietnam's M&A market
BUSINESSicon  21/11/2020 

Low interest rates could open up new opportunities for investors to take advantage of the cheap capital to buy shares and acquire new assets via M&A deals.

Vietnam proves potential to profit from shifts in global supply chain
Vietnam proves potential to profit from shifts in global supply chain
BUSINESSicon  21/11/2020 

Years of economic growth and success in fighting Covid-19 paved the way for Vietnam to receive shifting FDI inflows, but limited participation in manufacturing industries might hinder its progress.

Vietnamese consumers increasingly embrace sustainability
Vietnamese consumers increasingly embrace sustainability
BUSINESSicon  21/11/2020 

Sustainability has been a growing topic of interest to Vietnamese consumers in recent years though awareness levels remain well below the global average.

VN corporate bond market cools for 2nd month
VN corporate bond market cools for 2nd month
BUSINESSicon  20/11/2020 

The value of corporate bonds issued in October was VND9.5 trillion (US$409 million), down 12.8 per cent from September, according to the Hanoi Stock Exchange (HNX).

Under FTAs, car imports will be subject to lower tariffs
Under FTAs, car imports will be subject to lower tariffs
FEATUREicon  21/11/2020 

The two important FTAs – CPTPP and EVFTA – all have strong commitments on tariff cuts, with the tariffs expected to be completely removed in 7-13 years.

VIETNAM BUSINESS NEWS HEADLINES NOVEMBER 22
VIETNAM BUSINESS NEWS HEADLINES NOVEMBER 22
BUSINESSicon  22/11/2020 

Automobile sales surge in October

Vietnam’s digital economy to reach $14 billion this year
Vietnam’s digital economy to reach $14 billion this year
BUSINESSicon  20/11/2020 

Vietnam’s digital economy is expected to reach 14 billion USD in 2020, a year-on-year increase of 16 percent, and will likely reach 52 billion USD in 2025, re-accelerating to nearly 29 percent in compound annual growth rate.

 
 
 
Leave your comment on an article

OR QUICK LOGIN