return icon Vietnamnet.vn

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.

{keywords}
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. 

MORE NEWS

Vietnam needs extra US$368 billion to achieve net zero emissions

As the energy industry has a crucial role in achieving net zero emissions by 2050, it requires a structural transition toward green growth. Therefore, Vietnam needs assistance from developed countries regarding both financial and technical issues.

Labor Minister proposes harsh punishment for child offenders

Minister of Labor, War Invalids and Social Affairs Dao Ngoc Dung signed an official letter requesting to have harsh punishment for child offenders and strengthening measures to prevent violence against children.

Pu Sam Cap Cave: the hidden charm of Lai Chau

Pu Sam Cap Cave in Pu Sam Cap Commune, Sin Ho District, in the northwestern province of Lai Chau, is known for its wild, beautiful and mysterious beauty.

Hanoi’s three largest parks are seriously degraded

Many public works in the parks of Thu Le, Bach Thao, and Thong Nhat in Hanoi are in disrepair, affecting urban beauty and public experiences.

Why are thousands of public employees taking private-sector jobs?

Many public employees have recently quit their jobs and taken a job in the private sector. This indicates that the public sector is not attractive and that many problems need to be addressed.

Kon Tum Province records 300 earthquakes over a year

The Central Highland province of Kon Tum has recorded more than 300 earthquakes since April 2021, according to the provincial administration.

Highly-infectious BA.2.74 Omicron sub-variant detected in Vietnam

Vietnam has detected a number of new, highly-contagious Omicron sub-variants, including BA.2.74, said the General Department of Preventive Medicine on August 17.

Relaxing visa policy to attract more foreign tourists to Vietnam: insiders

Vietnam’s visa policy should be more open to lure international tourists, insiders have said.

Vietnam Airlines resumes, increases frequency of several flights in September

The national flag carrier Vietnam Airlines will resume flights connecting the central city of Da Nang with Malaysia’s Kuala Lumpur and Thailand’s Bangkok from September 1 and September 15, respectively, the carrier has announced.

Da Lat listed among world’s best places for binge-worthy dating

Booking.com has named Vietnam's Da Lat city among the world's six places for the summer’s binge-worthy dating shows.

Quang Ninh refutes allegations of sea encroachment in Ha Long Bay

The authorities of Quang Ninh province has refuted information that it has allowed a project to conduct sea encroachment and subdivide land plots for sale, which seriously undermined the conservation of the UNESCO-recognised Ha Long Bay.

VN extends time of anti-dumping investigation on tables, chairs from Malaysia, China

The Ministry of Industry and Trade (MoIT) has decided to extend time limit of investigation on applying anti-dumping measures on table and chair products originating from Malaysia and China by six months.

EVFTA and UKVFTA: the same sweet spot

With many similarities, the UK- Vietnam Free Trade Agreement (UKVFTA) could be called a direct copy of the EU- Vietnam Free Trade Agreement (EVFTA).

Credit package for social housing not as productive as hoped

Few have benefited from the VND15 trillion credit package for social housing as there is a limited supply of low-cost homes.

VIETNAM BUSINESS NEWS AUGUST 17

More effective tax collection of e-commerce necessary
back_to_top