Prospects for Vietnam to become Southeast Asia’s fintech hub

The article said Vietnam’s economy grew 6.8% in 2017, higher than the Government’s initial target of 6.7%, making it one of the fastest growing economies in Southeast Asia. Such rapid growth has resulted in increasing numbers of the middle class and internet users, propelling digital economic development. Some 54% of the country’s population uses the internet and the figure is expected to increase in the coming years. The Government has also outlined plans to consolidate the growth of the digital economy via various initiatives.

The author added that digital growth potential and economic prospects lay the foundation for Vietnam to become a hub for fintech start-ups. Statistics from the Vietnam Briefing show Vietnam’s fintech sector attracted US$129 million worth of investment in 2016.

The article said the fintech ecosystem in Vietnam has advanced quickly, and local start-ups focus on all fintech areas, ranging from peer-to-peer lending and credit scoring to mobile payments, among others.

It also attributed the development of fintech start-ups to assistance from authorities. In 2016, the Government established the National Agency for Technology, Entrepreneurship and Commercialisation Development (NATEC). NATEC is a platform under the Ministry of Science and Technology which aims to provide training, mentorship, business incubation and acceleration and financial aid to start-ups.

The author mentioned tax schemes for local start-ups and several start-up accelerator programmes in the country. For instance, the Vietnam Innovative Startup Accelerator (VIISA) has invested US$6 million in start-ups to help build global firms in Vietnam.

The article said the support given to start-ups has led to many flourishing Vietnamese fintech firms, with investment from across the world are pouring into these firms.

Last year, the Korea Investment Partners (KIP) and Mirae Asset Venture Investment reportedly invested US$10 million in Vietnamese mobile app developer Appota. Samsung Pay entered the market September the same year following an agreement with the National Payment Corporation of Vietnam (NAPAS). Not long later, Alibaba signed a deal with NAPAS in April to enable Chinese tourists to use Alipay in Vietnam.

It concluded that the country has come a long way to turn itself from an agricultural economy into one with impressive prospects for fintech development.