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    • Prospects for Vietnam to become Southeast Asia’s fintech hub

    Vietnam is likely to become Southeast Asia’s fintech (financial technology) hub, according to an article posted on theaseampost.com.
    Prospects for Vietnam to become Southeast Asia’s fintech hub ảnh 1sendo.vn, one of the largest e-commerce platforms of Vietnam (Photo: FPT Corporation)

    Hanoi (VNA) – Vietnam is likelyto become Southeast Asia’s fintech (financial technology) hub, according to anarticle posted on theaseampost.com.

    The article said Vietnam’s economy grew 6.8percent in 2017, higher than the Government’s initial target of 6.7 percent,making it one of the fastest growing economies in Southeast Asia. Such rapidgrowth has resulted in increasing numbers of the middle class and internetusers, propelling digital economic development. Some 54 percent of thecountry’s population uses the internet and the figure is expected to increase inthe coming years. The Government has also outlined plans to consolidate thegrowth of the digital economy via various initiatives.  
    The author added that digital growthpotential and economic prospects lay the foundation for Vietnam to become a hubfor fintech start-ups. Statistics from the Vietnam Briefing show Vietnam’s fintechsector attracted 129 million USD worth of investment in 2016.

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

    It also attributed the development offintech start-ups to assistance from authorities. In 2016, the Governmentestablished the National Agency for Technology, Entrepreneurship andCommercialisation Development (NATEC). NATEC is a platform under the Ministryof Science and Technology which aims to provide training, mentorship, businessincubation and acceleration and financial aid to start-ups.

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

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

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

    It concluded that the country has come a longway to turn itself from an agricultural economy into one with impressiveprospects for fintech development.-VNA
    VNA

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