Vietnam’s fintech explosion: investment capital soars from 0% to 36% in SE Asia

The investment capital poured into Vietnam’s fintechs in 2019 accounted for 36 percent of total capital into Southeast Asia. The figure was zero percent in 2018.

In 2015, fintechs began developing in Vietnam and the fintech community has been developing strongly since then, especially in Hanoi and HCM City. However, the number of fintechs in Vietnam remains modest if compared with other regional countries.

Vietnam’s fintech explosion: investment capital soars from 0% to 36% in SE Asia



In Vietnam, MoMo is one of rare fintechs finding its name among the startups of international stature. It once was listed in the world’s top 100 fintechs. Some startups have utilized AI and data science in daily services that serve large communities of people, including FE Credit, Tima and Trusting Social.

The total amount of capital poured into the country soared from zero percent in 2018 to 36 percent of total capital flowing into Southeast Asia in 2019. The sharp rise just within one year showed the explosion of Vietnam’s fintechs.

The total amount of capital poured into the country soared from zero percent in 2018 to 36 percent of total capital flowing into Southeast Asia in 2019. The sharp rise just within one year showed the explosion of Vietnam’s fintechs.

Until now, fintechs, especially the ones providing payment services, have to spend big money to increase their presence in the community.

 


Ha Dang Chinh, a fintech expert at Tinh Van Technology JSC, warned that the fintechs need to be cautious when ‘burning money’ to attract users.

There are two important parts in expenses of technology firms. First, the expenses to obtain one user (creating habit of using service by regular customer). Second, the value of the life cycle customers can pay.

It is necessary to analyze the relation between the amounts of money fintechs spend and the money customers can bring.

“We sometimes say we ‘burn money’ to obtain users, but we sometimes don’t understand the reasons why we burn money,” he said.

He went on to warn that the ‘burning money’ policy may do more harm than good. Users will immediately leave one e-wallet and shift to another one that is offers bigger preferences.

“One person may have 5-10 accounts,” he said.

The strong rise of fintechs has raised a question if fintechs could be a threat to banks.

Chinh commented that the banking sector is in the third wave of development. The second wave was seen some years ago and it was the development of e-banking. At present, banks are developing digital banking.

To develop digital banking, banks have to rely on new technologies such as AI, Big Data and Machine Learning.

In the process of digital transformation, the banks which go slowly will be seriously affected, but this will be the opportunity for small banks which still don’t have large coverage.

The expert believes that banks and fintechs should cooperate with each other to upgrade the services to be provided to customers.

Thanh Lich 

Are fintechs in Vietnam mostly e-wallets?

Are fintechs in Vietnam mostly e-wallets?

Investment funds had poured $410 million into Vietnam’s fintechs as of the end of September 2019, according to a report of PricewaterhouseCoopers, United Overseas Bank and Singaporean Fintech Association.

VN e-commerce and fintech firms successfully call for huge capital in 2019

VN e-commerce and fintech firms successfully call for huge capital in 2019

E-commerce and fintechs accounted for four-fifths of the total number of big calls for capital in 2019. The biggest deal was worth $300 million.

 
 

Other News

.
Shrimp exporters bring home 3.85 billion USD in 2020
Shrimp exporters bring home 3.85 billion USD in 2020
BUSINESSicon  10/01/2021 

Earnings from shrimp exports reached 3.85 billion USD last year, up 15 percent year-on-year despite difficulties caused by the COVID-19 pandemic.

Lotus silk in fight for survival as cost becomes King
Lotus silk in fight for survival as cost becomes King
BUSINESSicon  10/01/2021 

The year 2020 will go down in history for a host of reasons, one being that the COVID-19 pandemic shut borders that had long been open wide for trade.

VNR concerned over loss of entire equity
VNR concerned over loss of entire equity
BUSINESSicon  10/01/2021 

The Vietnam Railway Corporation (VNR) incurred losses of some VND1.3 trillion last year due to Covid-19 and continuous storms in the central region.

Runway upgrade at TSN airport completed
Runway upgrade at TSN airport completed
BUSINESSicon  10/01/2021 

The runway renovation project commenced on June 29 last year, with a total investment of some VND2 trillion.

For the sake of sustainable fish export
For the sake of sustainable fish export
BUSINESSicon  10/01/2021 

The price of tra (pangasius) fish has experienced one fluctuation after another. This year is forecast to be a recovery time for the fish.

Minister urges quick building of project on natural forest protection
Minister urges quick building of project on natural forest protection
BUSINESSicon  10/01/2021 

The forestry sector should take swift action to build a project on zoning off and protecting natural forests in the time to come, said Minister of Agriculture and Rural Development Nguyen Xuan Cuong.

Resilience helps Vietnam overcome year of COVID-19
Resilience helps Vietnam overcome year of COVID-19
FEATUREicon  09/01/2021 

Though COVID-19 has sent the global economy into one of its worst recessions ever, Vietnam posted GDP growth of 2.91 percent in 2020 thanks to its solid control of outbreaks and timely support to both enterprises and local people.

Construction of T&T Group’s modern trade center commences in Dak Nong Province
Construction of T&T Group’s modern trade center commences in Dak Nong Province
BUSINESSicon  09/01/2021 

The construction of the VND645 billion Dak Mil Trade Center was kicked off in the Central Highlands province of Dak Nong on January 6 by the Vegetable Import and Export Joint Stock Company (a member of T&T Group).

VIETNAM BUSINESS NEWS JANUARY 10
VIETNAM BUSINESS NEWS JANUARY 10
BUSINESSicon  10/01/2021 

VNR500, top 10 prestigious companies honoured

Vietnamese, US officials talk economic, trade issues
Vietnamese, US officials talk economic, trade issues
BUSINESSicon  08/01/2021 

Minister of Industry and Trade Tran Tuan Anh has held phone talks with US Trade Representative (USTR) Robert Lighthizer to discuss bilateral economic and trade issues.

Opportunities opened for food processing industry
Opportunities opened for food processing industry
BUSINESSicon  08/01/2021 

According to Vietnamese trade counselors, in 2021, Vietnamese goods, in general, have a great opportunity to export to Europe, Northern Europe, the US, the Eurasian Economic Union, Japan, South Korea, and China.

Insurance groups signal intent to raise funds for stock boost
Insurance groups signal intent to raise funds for stock boost
BUSINESSicon  08/01/2021 

Insurance companies in Vietnam are lifting the curtains on their public fundraising plans, seen as a step towards luring more cash in the promising insurance and reinsurance market.

Vietnam to be among top growth performers again in 2021: HSBC
Vietnam to be among top growth performers again in 2021: HSBC
BUSINESSicon  09/01/2021 

Vietnam posted the fastest growth in Asia in 2020 and will once again be among the most outstanding performers in the region this year, according to the Hong Kong Shanghai Banking Corporation (HSBC).

FDI enterprises increase but more losses reported
FDI enterprises increase but more losses reported
BUSINESSicon  08/01/2021 

The number of foreign direct investment (FDI) enterprises continues to increase in Vietnam, but more are reporting losses. 

VIETNAM BUSINESS NEWS JANUARY 9
VIETNAM BUSINESS NEWS JANUARY 9
BUSINESSicon  09/01/2021 

Credit growth forecast to reach 13-14 percent this year: SSI

Vietnam imports rice from India for first time
Vietnam imports rice from India for first time
BUSINESSicon  08/01/2021 

Vietnam’s rice output is more than enough to satisfy domestic demand, but country is importing rice from India to use mostly for animal feed.

Property prices expected to rise 10 percent in 2021
Property prices expected to rise 10 percent in 2021
BUSINESSicon  08/01/2021 

Real estate prices in 2021 are expected to increase by 10 percent over the previous year, said Nguyen Van Dinh, deputy general secretary of the Vietnam Real Estate Association (VNREA).

Spikes in rent scaring away industrial zone tenants
Spikes in rent scaring away industrial zone tenants
BUSINESSicon  08/01/2021 

The supply of industrial land and real estate has so far not kept up with the ever-rising demand from manufacturers and investors, leading to price hikes like never before.

New entity to invigorate Vietnam’s stock markets
New entity to invigorate Vietnam’s stock markets
BUSINESSicon  07/01/2021 

With general optimism well-founded for Vietnam’s stock market building in the past year, there is now significant anticipation for 2021 with the arrival of a new entity to run the country’s exchanges.

High expectations laid out through fresh policy move
High expectations laid out through fresh policy move
BUSINESSicon  08/01/2021 

Three amended key laws on securities, enterprises, and investment have now come into force.

 
 
 
Leave your comment on an article

OR QUICK LOGIN