Tag: fintech

New investment expected to support company in providing financial solutions for underserved SMEs in Vietnam.

Vietnam’s internet economy posted value of $21 billion in 2021, ranking it 14th in Asia and 70th globally, but issues remain.

Vietnam’s digital technology industry has set the foundations for the development of a digital economy, digital society, and digital government.

The Central Institute for Economic Management (CIEM) has said the lack of a legal foundation for fintech and the circular economy raises concerns about risks and negative consequences. It is therefore necessary for Vietnam to accelerate the testing of a sandbox mechanism in the banking sector.

Vietnamese startups raised a total of $1.5 billion in investment last year, according to Nextrans Vietnam. Fintech (financial technology) led the way in venture capital (VC) funding, accounting for 26.6 per cent of the total, revealing the confidence shown in its prospects. There were seven leading fintech startups named by Fintechnews: VNLife, M_Service, Sky Mavis, Trusting Social, Timo, Finhay, and Nano Technologies.

The State Bank of Vietnam (SBV) is researching a decree on a controlled trial mechanism for financial technology (fintech) activities in the banking sector, for submission to the government for promulgation this year. The central bank will also focus on helping credit institutions and foreign bank branches in Vietnam receive foreign aid and concessional loans to finance projects on the green classification list.

Participants at the annual Vietnam Business Forum suggested several changes to the banking sector the State Bank of Vietnam may consider.

After reaching the milestone of 1 million users after only eleven months in business, the 9Pay e-wallet is now focusing on upgrading technology in a bid to become the Number 1 e-wallet in the market for the payment of digital content services. Vietnam’s fintech market still has a lot of room for 9Pay to expand.

Forum hears of the benefits to be had as Vietnam embraces the digitalization of its banking sector.

Vietnam’s fintech (financial technology) market has posted notable growth over recent years and introduced a diverse range of services. The legal framework for intermediary payment services and fintech is lacking and inconsistent, however, resulting in fintech companies operating primarily under the Corporate Law and the Civil Law and with many activities not regulated by any law.

Investors are now paying greater attention to ASEAN’s fintech sector.

There are currently no legal regulations in Vietnam on the activities of companies providing financial technology (fintech) solutions. The government has therefore assigned the State Bank of Vietnam (SBV) to coordinate with relevant ministries and agencies to develop a decree on the controlled testing mechanism over fintech activities in the banking sector in the fourth quarter of 2021.

Fintech companies and e-wallet providers in Vietnam are locked in hot competition in the fields of payments, retail lending, and consumer lending.