While the need to achieve gender equality in the digital economy has been much discussed, our assessment of where we are today shows that we can do a better job. 

The exclusion of women has cost developing economies a staggering US$1 trillion loss over the last decade — a figure set to balloon by 50 per cent by 2025 if we don’t act. The urgent need for gender equality in the digital realm isn’t just about abstract figures. It’s about women who dream of building businesses but lack the capital and digital access to make them a reality. 

We’ve seen how women entrepreneurs bring unique perspectives, creativity, and problem-solving skills while investing back into their communities, creating jobs and driving social impact. UN’s report on entrepreneurs in Thailand, the Philippines, and Malaysia illustrates these positive ripple effects – where women founders hire 17 per cent more women than their male counterparts. They also use their incomes differently, spending 90 cents of every dollar they earn on their families, including on their children’s education, health and nutrition, compared to 30-40 cents devoted by men.

We must recognise that despite these benefits, only a third of small and medium businesses in Southeast Asia are women-owned, despite micro, small and medium businesses making up over 90 per cent of total establishments in this region. Women entrepreneurs still face significant challenges, including limited access to capital, networks, and relevant business skills.

This aligns with the significance of this year’s International Women’s Day UN theme, “Invest in Women: Accelerate Progress.”

The digital economy can boost the growth of women-led businesses

The digital economy presents a transformative catalyst for the growth of women-led businesses in Southeast Asia. Beyond a simple shift to “going online,” it offers strategic and operational advantages that empower women entrepreneurs to thrive.

For many women, the digital landscape redefines the conventional workplace. Automation and digital workflow tools can streamline everyday operations while offering the possibility of remote work environments. This newfound flexibility enables women to harmoniously manage household responsibilities and career aspirations — a balance often elusive in traditional business models.

Going online also means that women entrepreneurs can start their businesses with lower startup costs too, and without the need for a physical storefront, which is a significant advantage. They can even reach customers worldwide to grow their businesses beyond local markets.

Also Read: The climate change and gender equality connection: How to support underfunded women-owned business

The figures speak for themselves: four in five enterprises report sales increases and cost reductions directly attributed to the adoption of digital technologies. This is especially compelling within Southeast Asia, where the digital economy sectors continue to be on a growth trajectory despite global macroeconomic headwinds, according to the e-Conomy SEA 2023 report. The signs are clear that digital participation by these women entrepreneurs can reap benefits as they engage some of the most digitally engaged consumers in the world.

Empowering women-led businesses to come online in Southeast Asia

With these benefits in mind, we believe that private organisations in the region can play a greater part in empowering these women entrepreneurs. Three areas of support come to mind: 

Tailored digital training for entrepreneurs at every level is helpful in uplifting the community

In the region’s rapidly evolving digital landscape, tailored digital training for entrepreneurs is not simply beneficial – it’s essential for an equitable and thriving future. The International Telecommunication Union‘s analysis reveals a comparable gender gap in digital skills and STEM access. Left unaddressed, this divide threatens to exclude women from the very economic opportunities the digital economy promises.

While the digital economy teems with potential, women entrepreneurs must possess the skills to fully harness those opportunities for business growth. This is the driving force behind impactful initiatives like The Asia Foundation’s Go Digital ASEAN program, supported by Google’s philanthropy Google.org, in training over 140,000 entrepreneurs to date, with 60 per cent of women from underserved communities.

It recognises that digital literacy isn’t one-size-fits-all. By offering tailored training in business, finance, marketing, cybersecurity, and sustainability, women at all stages of their entrepreneurial journey gain the tools for sustained growth.

The impact is undeniable. Over 90 per cent of participants report a surge in confidence and skill when leveraging digital tools for their economic advancement. Success stories like Ms Sunu Asri of Indonesia provide a glimpse of the impact of such programs.

After learning about design apps, targeted marketing, and effective use of digital tools through the program, her fruit salad venture tripled in sales. This newfound knowledge fuels sustainable growth and inspires further digital applications within her business. We see many more stories like Ms Sunu’s through initiatives like this, and we want to keep growing this pool of entrepreneurs. 

Also Read: Breaking barriers: Hidden hurdles faced by women entrepreneurs

By investing in tailored digital training for women, we don’t simply empower individuals; we ignite a ripple effect of economic and social progress that strengthens entire communities.

Better access to capital and digital tools can help entrepreneurs grow businesses sustainably

Access to capital remains a cornerstone of entrepreneurial success, empowering businesses to scale, generate greater income, and reinvest in their communities. Yet, per the International Finance Corporation’s (IFC) estimation, approximately 70 per cent of women-owned SMEs globally lack adequate access to financial services. Compounding this, a mere seven per cent of private equity and venture capital flows to female-led businesses.

To bridge this divide, organisations must prioritise innovative funding solutions tailored to women-led businesses. These can encompass targeted grants, low-interest loans, and subsidised technology designed to dismantle barriers and drive accelerated growth.

Initiatives such as Standard Chartered Bank’s WOWnita program in Malaysia serve as powerful models. It offers not only lower interest rates, collateral-free applications, and flexible repayment plans for women entrepreneurs but also a streamlined, user-centric application process.

Similarly, Google for Startups Women Founders Fund provides financial access to our suite of products free of charge while providing hands-on mentorship and product support on cloud solutions, AI, and machine learning, among others, to help founders build and grow their businesses. 

By providing ready access to capital and technology to women entrepreneurs it can give them greater confidence in growing their business sustainably. 

Hands-on mentorship helps to build entrepreneurial attributes 

Entrepreneurial success hinges on far more than just technical skills, funding, and the latest tools. The cultivation of a resilient, forward-thinking mindset proves equally vital. Hands-on mentorship plays a pivotal role in fostering this mindset, empowering entrepreneurs to embrace their potential and confidently champion their initiatives.

Nurturing an entrepreneurial spirit requires a multifaceted approach. Programs like SheDisrupts in Indonesia demonstrate the transformative power of dedicated mentorship. By connecting women entrepreneurs with seasoned investors, advisors, and fellow innovators, they create a dynamic support network that fosters growth and unlocks innovation.

Such guidance proves invaluable as entrepreneurs navigate complex social and environmental challenges through their ventures. The program’s success speaks for itself, prompting it to return for a third year in 2023. 

By cultivating entrepreneurial attributes through mentorship, we are planting the seeds for a more resilient, innovative, and equitable business landscape. The hope is for these beneficiaries to pay it forward and continue helping even more female entrepreneurs seeking such support. 

Collective action can level the digital playing field

The transformation of women-led businesses within Southeast Asia’s digital economy is a shared responsibility.  By empowering women entrepreneurs with resources and access, we unlock their ambition and ingenuity.

This doesn’t simply benefit individuals; it builds stronger communities and, ultimately, a more prosperous region for all.  In the face of global challenges, let’s seize the potential of the digital landscape to create a future where equality and opportunity are not just ideals but realities.

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Indonesia’s long-stay rental provider Rukita has secured US$15 million in a Series B extension round of financing from new investors, including MPower Partners, BNI Ventures, Openspace Ventures, and NBA star Jeremy Lin.

Existing backers also participated, including Peak XV’s Surge, Golden Gate Ventures, Shunwei Capital, OCBC Ventures, and real estate veteran David Tsang.

The funding will be used to develop cutting-edge technologies, expand its service offerings, and recruit top-tier tech talent to bolster its team.

Also Read: How Rukita turned the pandemic into an opportunity to grow its co-living business

“We are looking forward to deepening our bench strength of tech talent to strengthen our platform and better serve our growing base of renters and property owners,” said Sarah Soewatdy, COO of Rukita.

Founded in 2019 by Sabrina Soewatdy and Sarah Soewatdy, Rukita aims to capitalise on the growing popularity of rental housing among Indonesia’s rising middle class and staggering millennial population.

The firm brings together property, landlords, market insights, marketplaces, financing, and tenant service.

Rukita claims to be EBITDA positive and doubling its supply growth year-on-year with 1.4 million rooms under its ecosystem and unique users of over 3 million per month.

“This funding marks a significant step forward in our journey to redefine the real estate landscape and drive accessibility to quality housing for different lifestyles and life stages,” said Sabrina Soewatdy, CEO of Rukita.

Also Read: Leadership mindset: The key to driving real estate digital transformation?

In 2022, Rukita acquired Infokost.id, a local search site for boarding houses, for an undisclosed sum. Infokost.id was first owned by GDP Venture, a Djarum Group financing company. In December 2020, Infokost closed its operations. Rukita then took it over and revitalised it with a series of innovations.

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X marks Echelon. Join us at Singapore EXPO on May 15-16 for the 10th edition of Asia’s leading tech and startup conference. Enjoy 2 days of building connections with potential investors, partners, and customers, exploring innovation, and sharing insights with 8,000+ key decision-makers of Asia’s tech ecosystem. Get your tickets here.

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The global community confronts dire environmental challenges encompassing climate change, inadequate sustainability governance, deforestation, soil degradation, agricultural waste, and the rapid pace of the fashion industry. In a stark illustration of these issues, 2023 emerged as a pivotal year, breaking records to claim the title of the hottest year ever recorded.

With worldwide temperatures averaging 14.98°C, a significant 1.46°C above pre-industrial levels and 0.13°C surpassing the eleven-month average for 2016, previously deemed the hottest year, the gravity of climate change becomes undeniable.

Compounding these concerns, human activities have propelled carbon dioxide levels in 2023 to unprecedented heights, surpassing even the pre-industrial era levels by more than double. In cities, rising energy use worsens the urban heat island effect, raising health risks and straining resources. Energy efficiency efforts fall short, leading to increased carbon emissions and exacerbating climate change. Urgent action is needed to manage carbon emissions as unchecked greenhouse gases intensify global warming. Transparent carbon reporting mechanisms are crucial for effective mitigation. Climate shifts endanger food security, notably in aquaculture, where changing conditions disrupt production.

Also read: BRI Ventures CEO to share insights on chasing Indonesia’s next Unicorn

In today’s world, societies are more aware than ever of the challenges associated with sustainability. Technological innovation emerges as a pivotal solution, illustrating its influence across diverse realms such as social relations, consumer behaviours, purchasing patterns, lifestyles, prosperity, and cultural development. Specifically, technology plays a transformative role in shaping the demand for energy and raw materials, optimising manufacturing processes and efficiency, enhancing product performance, and addressing issues related to waste management and reduction.

Despite its paramount significance, proponents of the technology and innovation sector face formidable challenges in achieving their objectives, grappling with limitations in essential resources such as human capital, financial investments, know-how, and other necessary supporting structures.

The birth of UOB The FinLab Greentech Accelerator

Launched in May 2022 by UOB FinLab, the GreenTech Accelerator (GTA) aims to grow and commercialise greentech solutions to meet the sustainability needs of businesses.

“Back in the early 2020s, we noticed that greentechs were still particularly nascent, especially in the ASEAN market. Through our Sustainability Innovation Programme (SIP), we also realised that there was a strong interest and demand for businesses to go green and adopt sustainable solutions. For instance, customers raised their purchases of sustainable items by 93% in 2022 despite the rising cost of living, and 72% of businesses believe climate change posed negative consequences to their operations and profitability. We have had more than 800 SMEs over the past 3 years attend our SIP, providing us with an opportunity to address the demand and supply gap. Hence, we decided to start the GTA to further amplify our contribution,” shared Shannon Lung, Head of UOB FinLab.

Diverging from the conventional approach of equity acquisition or fundraising assistance employed by many accelerators, the GreenTech Accelerator (GTA) operates as an equity-free platform, empowering businesses to retain rigorous control over their ownership. GTA’s distinctive value proposition lies in its dedicated focus on steering green technology enterprises towards business opportunities and impactful outcomes by fostering connections with entities facing real sustainability challenges.

Also read: Tech-forward, human-centric: Shaping tomorrow’s customer engagement landscape

In its inaugural event in 2022, GTA garnered applications from a diverse pool of over 150 candidates spanning 45 countries. The subsequent three-month Greentech Accelerator Programme saw 12 selected startups demonstrating their achievements in a compelling Showcase Day held at the Singapore Fintech Festival Labcrawl.

The success stories of HydroNeo and REDEX from the previous GreenTech Accelerator program serve as compelling use cases to highlight the benefits of becoming part of GTA’s network. “HydroNeo and REDEX are two great examples of successful past participants that leveraged UOB FinLab’s extensive network to create genuine business opportunities. As a result of the previous GreenTech Accelerator programme, HydroNeo connected with more than 15 industry players and managed to embark on a pilot project together with UOB to support Thai shrimp farmers in digitalising their business processes.

Similarly, REDEX leveraged the networking sessions and masterclasses to meet industry leaders, educated businesses and increased mindshare of their product – Renewable Energy Certificates (RECs) and secured new clients, including UOB. Being in front of a curated network was instrumental for REDEX as it provided great opportunities for collaboration with new partners,” elaborated by Shannon Lung.

What’s in it for GreenTech Accelerator 2024?

Building on the success of the previous run to regionalise the programme, GreenTech Accelerator 2024 is poised to make a significant regional impact, with a focus on Singapore, Thailand, and Malaysia this year. “GTA 2024 plays a crucial role in ensuring global greentechs to have a platform that fosters business growth and innovation by bringing together an extensive network of industry leaders in sustainability, government agencies and businesses,” stated Shannon Lung.

With UOB FinLab’s support, GTA strengthens its mission to drive innovation and sustainability. Together, they empower green technology initiatives by tapping into UOB FinLab’s network and resources. This collaboration distinguishes GTA’s commitment to helping support innovations in green technology, aligning with UOB FinLab’s broader digitalisation goal and impacting various sectors.

GTA is designed to pioneer a regional-local or hyperlocal approach, aiming to foster innovation that transcends borders and sectors. By promoting cross-border collaboration, GTA facilitates the exchange of greentech solutions across regions. For instance, a sustainable solution developed in Singapore or Malaysia may offer valuable insights to address similar challenges in Thailand and beyond. Through GTA, a network effect is generated, enabling the sharing of knowledge, insights, and opportunities across diverse ecosystems.

Also read: Moving to Japan is a big step – but one that is getting smaller

Leveraging regional networks and expertise, while maintaining a global outreach, GTA establishes local chapters and encourages community engagement. This approach not only amplifies the impact of green innovations but also nurtures a collaborative ecosystem where local stakeholders actively contribute to global sustainability efforts.

By partnering with GTA, UOB FinLab aims to catalyse cross-sector efforts, highlighting technology’s role in sustainability, and showing that integrating greentech across industries is key to addressing environmental challenges holistically.

The GreenTech Accelerator 2024 program lays out clear criteria for applicants, emphasising the need for Asia-based startups that offer scalable global solutions, possess a Technology Readiness Level of 6 and above, and a focus on key themes such as energy efficiency, zero-waste and supply chain, sustainability reporting and carbon management, food and agriculture, and sustainable cities and urban planning.

Offering tips for prospective participants to wow the judges, Shannon Lung emphasised, “The judges are looking for mature, impactful, and deployable solutions that can tackle the needs of businesses. Be concise in highlighting your unique value proposition, how it can benefit businesses, your track record and ‘why’ you would be keen to be part of GTA2024.”

The application deadline for the program is March 31st. 

A slew of support for greentechs

To further demonstrate its commitment to empowering innovative solutions, GTA offers a total of up to SGD100,000 available for greentechs to pilot innovative, relevant, and deployable solutions with businesses. In addition, the selected greentechs will also undergo masterclasses, mentorships, and leverage on UOB FinLab’s vast network of 23,000 businesses comprising corporates and SMEs, governments, institutes of higher learning, associations and technology providers etc. to scale the business across the region.

Supported by key partners like Enterprise Singapore, A*StartCentral, Temasek Foundation, AWS, and Ecolabs, the GreenTech Accelerator 2024 is poised to be a transformative force, driving sustainable innovations in the heart of Asia.

GreenTech Accelerator 2024 not only helps bolster participating startups but also helps further our common goal of saving the planet. For more information, please visit https://thefinlab.com/programmes/the-greentech-accelerator/.

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This article is produced by the e27 team, sponsored by UOB FinLab

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Leadership is something that comes naturally to some people, and some people don’t even understand the concept of leadership. It is hilarious how some people don’t even know when they are a lousy boss. Leadership is all about looking into the needs of the employees and the society and helping them to develop stronger.

To give the best working environment for your employees, you have to provide them with suitable tools, regular technology upgrades and tell them that you expect them to become the best in the business.

If you want them to believe in themselves, tell them that you believe in their potential and When employees get the things they want to complete their job, they will give you the results that are more than what you expected.

Instead of getting into the cause of why your employees are acting weird in the workplace, let’s do a reality check. The following points consist of the attributes that you must avoid as a leader.

1. If you’re selfish, you are not a leader!

This is one of the most toxic personality traits, no matter if you are a leader or anyone else, but especially in leadership, this can be very harmful to your business, employees, and everyone around you.

If you want your employees to stick to your company and business, then you have to give them the freedom to use their own creativity. Being a boss will not necessarily work for you every time.

Also Read: Mind your emotions: why emotional agility is the key to personal growth

You have to show your employees why they are important for your business and this will increase the level of respect they have for you.

2. Taking all the credit and not praising your workers

Most of the times when the business or company prospers, the employers tend to take all credits and praises, that’s what they do wrong. Employees deserve equal recognition and commendations for their hard work.

A true leader is someone who understands that employees are a part of their prosperous business family.

If you praise your employees for their hard work, they will increase the level of their productivity, they will most likely stay loyal to you and your business, and most importantly, they will never act weird around the workplace.

Irritation is normal when you work hard on something, see the results, but don’t receive the credits for it.

3. They are your asset, not just your workforce

One of the worst thing a manager can do is to look at his employees as a workforce. When you start looking at your employees as a workforce, they look like a liability for your business.

That’s what I call the most terrible interpretation of a workforce. Your workforce is not a reason for your increased expenses in the industry. Your workforce is the most precious asset of your business.

Instead of looking at them as merely a source of productivity and profit generation, look at them as a precious asset and do everything possible to give them a healthy working environment.

This will reduce the level of stress for them at work, and they will work harder for the success of your business as a team. That’s how they will stay with you and your business forever!

What makes the difference?

People use the words “boss” and “leader” interchangeably, but these two words have different minor meanings as well. These slight differences play a vital role in the current scenario of the business environment.

One of the best points of distinction is that a boss is someone who takes charge of a team and assigns the task to the employees, whereas a leader is someone who motivates, inspires and aspires others to be the best version of themselves.

With that said, let’s look at some of the most crucial attributes of a manager, which makes him a good leader.

1. Tell them they are essential!

One of the most important tasks of a person after becoming a manager is to keep trying to build trust among the employees and encourage them to work as a team. That shows why a person can become a good leader. It will help the team create better communication and enhance the performance of the workers.

Encourage your workers to take part immensely in the daily tasks of the business and make them feel that they are an essential part of your business family.

2. Recognition is an ultimate morale booster

To boost the morale of your employees, you have to give them proper attention for their hard work in the business. In the past few years, almost sixteen per cent of workers left their job because they didn’t get the recognition that they deserve.

Also Read: Identifying leadership gaps in your organisation

In the US, more than 75 per cent of employees say that proper identification motivates them to do their best for their job.

3. Sometimes, just a slight push is enough

When your employees are passionate about their work, all they need from you is a small push, just a few words of motivation, an inspiring story, and that’s it! The amount of respect and you will gain after this will be unbelievable, I can assure you!

Tell them about the vision of your company or business. People tend to feel so good when they see they are a part of something fundamental.

Conclusion

In the long run, employees will stay with you only if they feel that you are a good leader. Anybody can become a boss and command people around him, but a leader helps in uplifting others, and that’s what makes him different.

Time has changed, and now, a leader has more respect than any other person. From the above points, see what qualities you have of a leader and what more you need to add in yourself to become a good leader and then see the change in your workplace.

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Editor’s note: e27 publishes relevant guest contributions from the community. Share your honest opinions and expert knowledge by submitting your content here.

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This article was first published on October 10, 2019

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Vietnamese firms like MoMo, Moca, and Payoo, and foreign firms like Grab and Gobear, are Fintech leaders in Vietnam. And the variety of services is startling: Digital Wallet providers, ride-hailing intermediaries, personal finance specialists, peer-to-peer lenders, and more.

Customer loyalty programs have become very creative. Digital solutions for both business and non-business purposes are common. Vietnam’s drive toward Industry 4.0 status is real and intense.

The demographics are familiar: Vietnam’s young population of more than 95 million, 84 per cent of mobile phone users own a smartphone, and 66 per cent of the population has internet access. Add to this the growth and increasing affluence of its middle class.

Vietnam is fertile ground for disruptive financial technology and its nimble start-ups are challenging incumbents across the spectrum: slow-moving and difficult to scale industries, such as traditional financial services, insurance, but also more nimble industries like marketing, distribution and more.

Indeed, no industry is immune to the changes that digital transformation is bringing to Vietnam.

But with all its appeal Vietnam’s market comes with challenges.

The challenges often revolve around It’s fluid and inadequate regulatory environment. But success begets success, and creative solutions abound. Spurred by the creativity in the market, we’ve prepared this brief Fintech FAQs.

1. I want to start a fintech company. What are the key legal issues?

Startup issues are technological, of course, but also regulatory, corporate, financial and more. Each component often has a legal overlay:

1. Formation and registration – most investments include an entity formed abroad.

2. Licensing and sublicensing – available licenses don’t always cover the intended activity. Some creativity is often necessary.

3. Financial regulatory and compliance. Some fintech activities require a special license. For example, specific licenses are required for an Intermediary Payment Services (“IPS”) provider, or for a Non-Bank Credit Institution (“NBCI”). But in some cases, one may piggyback onto another’s license by contracting for the license holder’s services or one can partner with a digital wallet or NBCI license holder.

4. Registration of appropriate business lines: In some cases, approval to conduct a particular business is itself a “license”, and no separate license is required. But some business lines, even those which do not require a license, may be subject to foreign ownership limitations, for example, “data processing”.

5. Special ownership arrangements: stock options, preferred shares, etc.

6. Financing can include venture capital or private equity or angel investments, as well as more traditional loans and convertible loans.

7. Employee stock options are important and are a form of financing.

8. Technology contracts (eg, software licensing, terms of use, etc.)

9. Broad intellectual property protection, including technology protection.

10. Data protection, storage and privacy (special obligations are imposed on companies that handle personal customer data).

11. Rules on cybersecurity may have an impact.

12. Advertising, marketing arrangements are often important.

Also Read: Vietnamese online pharma marketplace Thuocsi.vn gets US$500K from Cocoon Capital, VietCapital Ventures

13. Cooperation agreements, which define the rights and responsibilities of the companies that cooperate, include agreements on payment, confidentiality, intellectual property, warranties and indemnification, etc.

2. What about licenses. Is there a quick way to know what licenses I need and what the conditions are?

The short answer is, yes. What’s the product or service being offered? They will dictate the licensing requirements. In addition to an NBCI or an IPS mentioned above, there are other licenses.

For example, an insurance brokerage business requires an operating license. Sometimes more than one license is required.

Also, to emphasize, using another’s license at a fraction of the cost is a workable strategy as we discuss below. Licensing strategy is fundamental. It should be developed with the assistance of experienced local consultants.

3. If I need a license, should I get my own or should I team up with an entity that has a license?

The answer often depends on the license. The requirements to get a license may be large, there may be large capital requirements – minimum capital of a digital wallet is US$2.15 million.

The government acts deliberately and so it may take time for the license to be issued. The variables are the skill and experience of the applicant, capital required, the backlog of applications, and the regulatory framework.

The authorities will assess applications carefully. Having a complete and detailed application is important. Local authorities may request more information and they may ask a supervisory authority to review the application.

To repeat, one path is to form a strategic partnership or joint venture with an existing license holder. License holders are often seeking partners.

Another popular option is to acquire a local firm with an existing license. Acquiring a company involves a different approach. Research on the market is important. Each of these options presents a manageable path to success.

4. Does Vietnam allow fintech companies to enter a fintech regulatory sandbox?

“Sandbox” is understood in Vietnam as it is elsewhere. It provides regulatory exemptions for certain businesses and for a fixed period of time, to develop and test new products, services, and business models.

It perfectly fits Vietnam’s current needs.

The Prime Minister has put plans in motion to establish a Fintech Regulatory Sandbox. Details are sketchy. We are optimistic that a Fintech Sandbox will be established in the coming months.

5. I would like to raise funds for my fintech startup through an ICO/STO. Can I do so under the current legal and regulatory framework?

Initial Coin Offerings (“ICOs”) are not governed by either the Securities Law or the Civil Code, and cryptographic tokens have not been classified as assets or securities.

Cryptocurrencies are banned as a form of payment, and therefore ICOs, Security Token Offerings (“STOs”), and cryptocurrency exchanges are prohibited in Vietnam.

Also Read: What is the state of Vietnams e-commerce industry?

The Prime Minister has directed the Ministry of Justice and the State Bank of Vietnam to establish a legal framework to manage digital assets and cryptocurrencies. The expectation is that a legal framework will eventually be created. But, for now, traditional means of raising funds are the only path. That is, Venture Capital, Private Equity capital is available to start-ups.

So are banks and individual loans and other traditional funding sources. For example, a number of established incubators invest in start-ups. Many offshore funds are active in Vietnam searching for opportunities. Families and friends, of course, are always a solid option.

6. I want my startup to enter the digital wallet space. What are the legal and regulatory considerations?

A Digital Wallet company is an intermediary payment service regulated by the State Bank of Vietnam. In order to obtain an Intermediary Payment Services License, a digital wallet company must: (1) have charter capital of at least 50 billion VND (~ US$ 2.15 million), (2) demonstrate certain human resource requirements; fulfill facilities and technical conditions, (3) once licensed, it must open and maintain a separate payment guarantee account in an amount not less than the total money received from customers, less money already spent by or refunded to customers.

Vietnam did not commit to open the digital wallet market to foreign investment in its commitments under WTO. Nor did it do so under its recent trade agreements. Therefore, licensing for foreign investors is considered on a case-by-case basis.

While receiving an Intermediary Payment Services License can be slow, investors — foreign and Vietnamese — that meet conditions, can indeed, obtain a license. There are, for example, 31 active licenses for Intermediary Payment Services — five of them were issued in 2019.

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Editor’s note: e27 publishes relevant guest contributions from the community. Share your honest opinions and expert knowledge by submitting your content here.

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Image Credit: Tron Le

This article was first published on October 11, 2019

 

 

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