With no limitation on foreign ownership, Vietnam fintech market expects to boom

The State Bank of Vietnam (SBV) plans to set no limit on foreign ownership in fintechs.

The foreign ownership ratio limit of 49 percent was mentioned last year in the draft decree to replace Decree 101 on non-cash payment. However, the limitation is not included in the latest draft version.

With no limitation on foreign ownership, Vietnam fintech market expects to boom



Explaining this, SBV said intermediary payment is a new type of service which runs on the basis of technology, so foreign investment plays an important role in market development.

If the foreign ownership ceiling is removed, payment services, including electronic money transfer, e-wallet, payment portal and finance switching services can call for foreign capital.

The foreign ownership ratio limit of 49 percent was mentioned last year in the draft decree to replace Decree 101 on non-cash payment. However, the limitation is not included in the latest draft version.

This will give opportunities to Vietnamese firms to both get more investment capital and learn experience and technology from foreign enterprises. And this comes in line with the current digital economy development trend.

 


In case of VietUnion, in order to develop Payoo e-wallet in the last 10 years, the business decided to call for investment from the Japanese NTT Data. The foreign partner has over 50 percent of capital in Payoo and its presence has helped Payoo become one of the top five businesses in the e-payment service sector.

The five names include Payoo, MoMo, SenPay, Moca, AirPay and Zalo Pay.

It requires huge investment to develop e-wallets, including financial resources, technology, and high-quality labor force. If Vietnam doesn’t set limits on foreign ownership ratio, this will attract experienced and powerful players from markets such as India, Malaysia and Japan, which will help Vietnam’s fintech industry develop, according to Urata Kentaro from VietUnion.

A report found that investment capital poured into Vietnam’s fintechs in 2019 accounted for 36 percent of total investment capital in Southeast Asia, a sharp rise of 30 times compared with the year before.

The $100 million investment in MoMo e-wallet by a foreign fund and the $300 million investment in VnPay were among the biggest deals.

“Vietnamese enterprises will not be able to build a payment product that is both fast and secure for customers,” said Le Anh Huy, deputy CEO of FPT Wallet, whch owns Senpay.

Some experts commented that even if SBV sets limits on foreign ownership in fintechs, foreign investors will still find their way to own intermediary payment service providers in Vietnam. If so, it would be even more difficult to control fintechs.

At present, all the five biggest e-wallets in the market have foreign capital with an ownership ratio of over 30 percent. The ratio in oneif the E-wallets is 90 percent.

The five biggest players now hold more than 90 percent of the share of the market of 29 players.

Kim Chi 

Banks, fintech firms promote cashless payments during epidemic

Banks, fintech firms promote cashless payments during epidemic

To prevent the spread of the new strain of coronavirus in Vietnam, customers are encouraged to adopt cashless payment methods.

Vietnam’s fintechs increasingly attractive to foreign investors

Vietnam’s fintechs increasingly attractive to foreign investors

The Vietnamese finance market has seen many investment deals by foreign investors who have poured money into startups, showing the attractiveness of the new industry.

 
 

Other News

.
Gold prices go up, VN central bank commits to stabilise market
Gold prices go up, VN central bank commits to stabilise market
BUSINESSicon  07/08/2020 

Prices of the yellow metal soared a new record reaching VND62million(US$2,681) per tatel or 1.2 ounce in Vietnam on Thursday after the State Bank of Viet Nam (SBV) confirmed to have solutions and sufficient resources to stabilise the market.

Ministry leaders discuss action plan to implement EVFTA
Ministry leaders discuss action plan to implement EVFTA
BUSINESSicon  07/08/2020 

Vietnamese enterprises have been urged to renovate their business strategies if they want to benefit from the EU-Viet Nam Free Trade Agreement (EVFTA), 

Top 10 most valuable brands worth US$8.1 billion
Top 10 most valuable brands worth US$8.1 billion
BUSINESSicon  07/08/2020 

The top 10 most valuable brands in Viet Nam 2020 are worth US$8.1 billion, increasing by 17 per cent from last year and accounting for 30 per cent of the list’s total value, according to Forbes Viet Nam magazine.

ASEAN’s investment contributes significantlly to Vietnam’s economic development
ASEAN’s investment contributes significantlly to Vietnam’s economic development
BUSINESSicon  07/08/2020 

Since Vietnam joined ASEAN (July 28, 1995) and committed to the implementation of the ASEAN Free Trade Agreement (AFTA) in 1996, ASEAN's direct investment has contributed significantly to Vietnam’s economic development .

Vietnam Airlines plans to sell nine planes due to financial woes
Vietnam Airlines plans to sell nine planes due to financial woes
BUSINESSicon  06/08/2020 

Vietnam Airlines is planning to sell nine A321CEO planes to optimize its fleet and improve its cash flow, as the national flag carrier’s revenue has dropped sharply due to the Covid-19 pandemic.

Vietnam – one of the best long-term growth stories in Asia
Vietnam – one of the best long-term growth stories in Asia
BUSINESSicon  07/08/2020 

Vietnam is one of the best long-term growth stories in Asia and is one of the most preferred frontier markets, according to HSBC.

Maximum $130,700 fine for listing violations: Draft decree
Maximum $130,700 fine for listing violations: Draft decree
BUSINESSicon  06/08/2020 

Public companies may receive a penalty of VND2-3 billion ($87,120-$130,700) for falsifying share listing and trading documents under a proposal from the Ministry of Finance.

Singaporean business surges ahead
Singaporean business surges ahead
BUSINESSicon  07/08/2020 

Singaporean business and investment in Vietnam has increased significantly over the decades, thus greatly contributing to strengthening economic bilateral ties.

Furthering developmental ties with dynamic Singapore
Furthering developmental ties with dynamic Singapore
BUSINESSicon  06/08/2020 

Vietnam and Singapore are witnessing their heyday in bilateral and multifaceted cooperation.

Wide impacts to be made with new law changes
Wide impacts to be made with new law changes
BUSINESSicon  06/08/2020 

Effective in 2021, the amended laws on Enterprises, Investment, and Public-Private Partnership are expected to entail breakthrough changes to Vietnam’s business and investment landscape in the coming time, 

Decisive actions to achieve goals
Decisive actions to achieve goals
BUSINESSicon  06/08/2020 

The Ministry of Planning and Investment is currently working on possible scenarios for the upcoming period amid the ongoing developments of the global health crisis.

Millenium to develop $15 billion LNG project in Khanh Hoa
Millenium to develop $15 billion LNG project in Khanh Hoa
BUSINESSicon  06/08/2020 

If the $15 billion LNG project of Millenium Group is approved, it will contribute to making the Nam Van Phong area the largest LNG centre in Southeast Asia.

Rebound likely despite bumpy roads
Rebound likely despite bumpy roads
BUSINESSicon  06/08/2020 

Despite a serious dip in local production caused by the health crisis, Vietnam is expected to be one of the fastest-growing nations worldwide this year, with the economy forecast to stay among the few nations with positive growth.

Unique advantages can pull Vietnam out of uncertainty
Unique advantages can pull Vietnam out of uncertainty
BUSINESSicon  06/08/2020 

In life, economic and health gains are not always equal. This is true for individuals and for countries. While Vietnam has managed to contain the pandemic so far, its economy has been hurt in recent months. 

Hanoi’s Old Quarter businesses bear brunt of COVID-19 impact
Hanoi’s Old Quarter businesses bear brunt of COVID-19 impact
BUSINESSicon  06/08/2020 

The second wave of the COVID-19 epidemic to hit Vietnam has continued to deal a devastating blow to small businesses, travel agencies, and tourist accommodations in the Old Quarter of Hanoi due to the suspension of operations.

Container handling charge increases proposed to attract investment in seaports
Container handling charge increases proposed to attract investment in seaports
BUSINESSicon  06/08/2020 

Container loading and unloading service charges should be increased to approach the regional level so investors would not feel hesitant when pouring money into developing seaports.

Policies encourage automakers to assemble cars in Vietnam
Policies encourage automakers to assemble cars in Vietnam
BUSINESSicon  06/08/2020 

 Several automakers are considering assembling their best-selling models in Viet Nam due to the Government’s policy of zero import tariffs on components and a 50 per cent reduction in registration fees.

Thai firms acquire wind power farm in Ninh Thuan
Thai firms acquire wind power farm in Ninh Thuan
BUSINESSicon  06/08/2020 

Thailand’s Banpu and its power business arm Banpu Power (BPP) have joined forces to acquire El Wind Mui Dinh, an onshore wind farm in the south-central province of Ninh Thuan, in a deal worth $66 million.

EVFTA smooths the way for Vietnamese farm produce
EVFTA smooths the way for Vietnamese farm produce
BUSINESSicon  06/08/2020 

The EU-Vietnam Free Trade Agreement, at its core, aims to liberalise both tariff and non-tariff barriers on key exports of both sides over a period of 10 years.

Who will buy the state’s remaining 36% of shares in Sabeco?
Who will buy the state’s remaining 36% of shares in Sabeco?
BUSINESSicon  07/08/2020 

Analysts believe that ThaiBev, the biggest shareholder of Sabeco, will be the likely buyer of the shares.

 
 
 
Leave your comment on an article

OR QUICK LOGIN