Fintech forecast to be robust this year, driven by the creation of regulatory sandbox

The regulatory sandbox for financial technology (fintech) which is expected to be created this year, coupled with efforts to promote the use of digital financial services, are expected to accelerate the development of fintech in Vietnam.

Fintech forecast to be robust this year, driven by the creation of regulatory sandbox
A majority of fintech companies in Vietnam operate in payment service. — Photo laodong.vn

Governor of the State Bank of Vietnam Nguyen Thi Hong recently said that the central bank would focus on creating favourable conditions for fintech development this year in a bid to boost the digital economy.

Vietnam saw strong fintech development in 2020, partly fuelled by the COVID-19 pandemic which forced people to shift to cashless payments.

According to the recent Vietnam Fintech Report 2020 by Fintech News Singapore, the strong development of fintech in Vietnam was driven by the rapid growth of e-commerce platforms and the Government’s efforts to accelerate digital transformation and cashless payments to cope with the impacts of the COVID-19 pandemic.

Statistics showed that electronic payments in Vietnam increased by 76 per cent with the total transaction value increasing by 124 per cent in the first quarter of 2020 compared to the same period of 2019.

The visits to e-commerce apps reached 12.7 million in the second quarter of 2020 when social distancing was imposed, representing a rise of 43 per cent.

The report also pointed out that the number of fintech start-up firms in Vietnam increased nearly three times, from 44 in 2017 to 120 in 2020.

About 31 per cent of them operated in payments, 17 per cent in peer-to-peer lending and 13 per cent in blockchain/crypto while the rest were in wealth management, comparison, data/credit/scoring management, crowdfunding, insurtech, digital banking and SMEs financing.

The report said that international investors were optimistic about the potential of Vietnam’s fintech market and had poured millions of dollars into domestic fintech start-ups. However, the investment was mostly disbursed in 2019.

 

Major deals were VNPay raising $300 million from Softbank’s Vision Fund and Singapore’s GIC fund and Momo raising $100 million in its Series funding C round from Warburg Pincus.

Key players in the e-wallet market were MoMo, Payoo, Moca, Zalo Pay and Viettel Pay while three outstanding companies in B3B were VNPay, Trusting Social and Kilimo Finance.

The central bank was focusing on promoting digital transformation in the banking sector and developing the legal framework for fintech, including regulations about eKYC, mobile money and cross-border money transfers.

A regulatory sandbox for fintech was also expected to be submitted to the Government this year.

Tran Viet Vinh, founder of Fiin Financial Technology Innovation Joint Stock Company, said that the regulatory sandbox when issued would create an impetus for the development of new fintech services, which would bring more convenience to users.

Vinh said that fintech companies should prepare for participation in the sandbox while diversifying their products and services.

According to Nguyen Ba Diep, deputy chairman of e-wallet Momo, the cooperation between banks and fintech companies was of significant importance to create benefits and value for users, adding that this was also an important factor for fintech development in 2021.  VNS

79% Vietnamese consumers in favor of government’s initiative towards cashless society

79% Vietnamese consumers in favor of government’s initiative towards cashless society

Nearly 75% of Vietnamese consumers expect cashless payment to grow further in the next 12 months.

Digital economy and fintech see growth amid COVID-19

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.

 
 

Other News

.
Pandemic reveals enterprises’ view of responsibility
Pandemic reveals enterprises’ view of responsibility
BUSINESSicon  11/02/2021 

The unprecedented challenges arising from the COVID-19 pandemic have highlighted more than ever the importance of responsible crisis management and sustainable development at enterprises.

Bad debts of 20 banks up 4.5% in 2020
Bad debts of 20 banks up 4.5% in 2020
BUSINESSicon  11/02/2021 

The non-performing loans (NPLs) of 20 local banks at the end of 2020 rose by 4.5 per cent year-on-year to VND83.4 trillion (US$3.58 billion), according to the banks’ latest financial statements.

Stocks to ride on Vietnam economic recovery in 2021
Stocks to ride on Vietnam economic recovery in 2021
BUSINESSicon  10/02/2021 

Cement, petroleum and retail stocks are those that could see strong rises in 2021.

Organic Tet cakes become a hit
Organic Tet cakes become a hit
BUSINESSicon  09/02/2021 

Organic banh chung (square glutinous rice cake) sold in Ho Chi Minh City for the first time for Tet (Lunar New Year) has become very popular.

Vietnam rises two places in Bloomberg innovative economy index
Vietnam rises two places in Bloomberg innovative economy index
BUSINESSicon  10/02/2021 

Vietnam has moved up two places to 55th in the list of the world's 60 most innovative economies compiled by Bloomberg, but lags far behind Asian peers.

Novartis honored as pioneer in digital transformation in healthcare
Novartis honored as pioneer in digital transformation in healthcare
BUSINESSicon  09/02/2021 

Novartis is the sole pharmaceutical firm among a total of 34 units that were honored for their efforts and outstanding contributions to the Digital Transformation of the Healthcare Sector in 2020, at the National Digital Transformation Congress.

The poor, as well as businesses, fall into 'black credit' trap
The poor, as well as businesses, fall into 'black credit' trap
FEATUREicon  09/02/2021 

The poor, who lack financial information and knowledge, are often hurt by black credit. But many businesspeople have also become victims.

E-commerce sites launch Tet online sale campaigns
E-commerce sites launch Tet online sale campaigns
BUSINESSicon  09/02/2021 

While general stores and supermarkets are about to close for Tet holiday, e-commerce websites have stated they are ready to take orders even on Tet days.

VIETNAM BUSINESS NEWS FEBRUARY 10
VIETNAM BUSINESS NEWS FEBRUARY 10
BUSINESSicon  10/02/2021 

HCM City targets domestic market for tourism recovery

Leading exports take advantage of new generation FTAs
Leading exports take advantage of new generation FTAs
BUSINESSicon  09/02/2021 

Truong Dinh Hoe, secretary general of the Vietnam Association of Seafood Exporters and Producers (VASEP), said the EVFTA, which took effect last August, has opened up opportunities for shrimp exporters.

Enacting long-term reforms for strong economic recovery
Enacting long-term reforms for strong economic recovery
BUSINESSicon  09/02/2021 

As the global economy is still mostly struggling with the health crisis, the start in 2021 is overshadowed by the hurdles of the previous year. Nevertheless, Vietnam may regain traction in economic growth.

Keeping opportunities fresh in fruit and vegetable exports
Keeping opportunities fresh in fruit and vegetable exports
BUSINESSicon  08/02/2021 

The export of Vietnamese fruit and vegetables is worth hundreds of millions of US dollars each year but is so far impeded by the lack of appropriate preservation technology.

VIETNAM BUSINESS NEWS FEBRUARY 9
VIETNAM BUSINESS NEWS FEBRUARY 9
BUSINESSicon  09/02/2021 

Demand for top meat drives funding

VIETNAM BUSINESS NEWS FEBRUARY 8
VIETNAM BUSINESS NEWS FEBRUARY 8
BUSINESSicon  08/02/2021 

Flower growers look to online sales amid COVID-19 resurgence

Industrial park developers promote sustainability to attract “eagles”
Industrial park developers promote sustainability to attract “eagles”
BUSINESSicon  07/02/2021 

Vietnam has witnessed a growth in the arrival of global high-tech brands like Pegatron, Universal Scientific Industrial, Foxconn.

COVID-19 outbreak takes a toll on peach blossom sales
COVID-19 outbreak takes a toll on peach blossom sales
BUSINESSicon  08/02/2021 

As the Tet (Lunar New Year) holiday approaches people in Ha Noi flock to Quang An market in Tay Ho District to buy peach blossom trees.

Tax revenue from Google, Youtube, Facebook reaches $49.5 million in 2020
Tax revenue from Google, Youtube, Facebook reaches $49.5 million in 2020
BUSINESSicon  07/02/2021 

Tax revenues from online advertising business models of foreign organisations that do not have legal entities in Vietnam like Google, YouTube or Facebook hit VND1.14 trillion ($49.5 million) last year.

E-wallets offer online lucky money services amid virus outbreak
E-wallets offer online lucky money services amid virus outbreak
BUSINESSicon  06/02/2021 

E-wallets are gearing up to offer online lucky money services as the Tet (Lunar New Year) holiday approaches amid the third coronavirus outbreak in Vietnam.

VIETNAM BUSINESS NEWS FEBRUARY 7
VIETNAM BUSINESS NEWS FEBRUARY 7
BUSINESSicon  07/02/2021 

Vietnam rice prices hit 10-year high

Information security risks for SMEs in 2021
Information security risks for SMEs in 2021
BUSINESSicon  06/02/2021 

Not only facing difficulties caused by the Covid-19 pandemic, small and medium enterprises (SMEs) in Vietnam will also face many information safety and data security risks this year.

 
 
 
Leave your comment on an article

OR QUICK LOGIN