HCM City wants to become a financial center fir the region and the world.
The 2018 Global Fintech Hub report shows that there are 7 international and 23 regional fintech center. HCM City is listed among 25 emerging fintech centers. Vietnam’s fintech market is valued at $8 billion by 2020.
In 2002, the Party Politburo’s Resolution No 20 determined the building and development of HCM City into a financial center of the country and the region.
Economists believe that at first HCM City should strive to become a fintech center of the region.
Vietnam had 120 fintechs in 2018 and the figure increased to 154 by mid-2019. Fintechs have successfully called for $1.1 billion worth of capital. Their financial solutions have penetrated the retail and consumer credit markets.
According to Lam Nguyen Hai Long, chair of the HCM City Information Technology Association, HCM City can become a fintech center of the country for a number of reasons.
HCM City is now the driving force of the national economy and its businesses have highest market status. The city gathers a high number of software and technology firms, hi-tech parks and technology incubators. It is also the place for many fintechs to start up. The first and largest stock exchange is located in the city. Fifteen commercial banks, including four international ones and many international investment funds, have headquarters in the locality. This is the place where businesses can find a high-quality workforce.
|The 2018 Global Fintech Hub report shows that there are 7 international and 23 regional fintech center. HCM City is listed among 25 emerging fintech centers. Vietnam’s fintech market is valued at $8 billion by 2020.|
“This is the right place for fintech start-up projects. In particular, HCM City is closely connected with the regional financial center, Singapore, thanks to its geographical location,” he said.
“And, as reported by Global Fintech Hub 2018, HCM City is one of the emerging fintech centers of the region,” he said.
A study of the Institute for Banking Technology Development, an arm of the HCM City National University, found that of 154 operational fintechs in Vietnam, more than 60 set their head offices in HCM City.
These include MoMo e-wallet (payment sector) and Abivin (supply chain management). Besides fintechs, Vietnam also has old technology groups famous in Vietnam and offshore such as VNPT, Viettel, FPT, and VNG, and has banks and venture investment institutions.
Vo Tri Thanh, a respected economist, said developing HCM City into a fintech center is now suited to the booming digital economy. And in order to become a regional fintech center, HCM City needs a special policy.
Long also said that it is necessary to set up a legal framework for the fintech community to develop. Vietnam and the Philippines remain the only two out of six regional countries which still don’t have a "sandbox" for fintech development.
Vietnamese electronic wallet and payment application Momo jumped 48 places to sit at 36th in the top 100 global innovative fintech firms this year.