The fintech sector is forecast to see strong growth and become a major technology trend next year, while at the same time encouraging the growth of other sectors, heard participants at the Vietnam Young Leader Forum 2018 last week.

Participants discuss a startup project on the sidelines of the Vietnam Youth Business Forum 2018, held on December 14 in HCMC

Speaking at the forum, co-organized by the Business Support Startup Center and the HCMC Youth Business Association (YBA), HCMC YBA vice chairwoman Truong Ly Hoang Phi predicted that the development of technology may focus on the fintech sector next year.

Sharing Phi's view, Nguyen Ba Diep, vice chairman of the board of MoMo e-wallet service company, said the emerging fintech sector will boost the growth of traditional commercial sectors, and offer opportunities for e-commerce operators.

MoMo first operated by simply helping customers make e-payments. It then launched more features allowing users to carry out both online and offline payments.

To date, 10,000 service providers have used MoMo as one of their payment methods, along with 400 companies providing services in collaboration with MoMo.

From those examples, Diep pointed out that on-going technology growth in the country, along with the preference for quick and effective payment methods, are the driving force in the advancement of fintech.

The growth of fintech will pave the way for local startups to promote their development in the local market, where major enterprises are dominant, according to Hoang Quoc Quyen, general director of Vinfast Service.

Startups can study and tap niche markets, then offer products or services for fintech firms, which have been popular product distributors. By operating this way, startups will able to compete with long-established firms in the same field.

Also, local firms and startups were recommended to constantly improve their product and service quality to avoid being imitated, in addition to staying updated on latest market trends.

SGT