The Asian Development Bank (ADB) has stated that with the existing foundations of the startup ecosystem in general and the technology industry in particular, Vietnam may appear as a new technology unicorn in the future.
The Vietnamese government’s initiatives to advance the growth of fintech
The Vietnamese government has acknowledged that technology firms are the nation’s new source of growth.
The Government of Vietnam’s long-term objective in this sector, according to ADB, is to attract knowledge, businesses, people, and entrepreneurs to engage in economic development and the formation of successful start-ups.
An example of government support is Project 844, intending to develop 600 businesses by 2025, and 100 of them will be able to call for investment capital with a total value of at least VND 2 trillion (about US$85.44 million).
This goal is supported by the National Fund for Technological Innovation and two new projects called “Supporting students and students to start a business by 2025” and “Supporting women to start a business in the period 2017-2025”.
The next generation of Vietnamese startup unicorns will be developed and built, according to Aimee Hampel-Milagrosa, an economist at ADB and one of the report’s primary authors, who claimed that the government has started to put together crucial components, such as financial and policy incentives, to facilitate this process.
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The license for the cryptocurrency and e-commerce segment was developed in 2021. There are many financial and fintech projects being heated, such as creating an Open Banking framework and Data Protection. (Data Protection) and Security Roadmap/Strategy, National Strategy for Financial Inclusion 2022.
Vietnam supports the position of fintech with hard data
The top five startup industries in Vietnam in years recently are financial technology, or fintech (26.6 per cent), e-commerce (20.3 per cent), educational technology or edutech, medical technology or healthtech, and service software (6.3 per cent).
Health technology and agricultural technology or agritech are two fields with strong social impact and promise to support more fair and sustainable development, according to ADB.
By the end of 2021, Vietnam had added MoMo and Sky Mavis to the list in addition to the two unicorns that had previously appeared, VNG (2014) and VNLIFE (2019). Vietnam comes in third place in the area for the number of technology unicorns, behind Singapore and Indonesia. And set a record investment capital of US$1.4 billion.
And companies that are considered “near” technology unicorns and promising startups that create a unique business model or competitive advantage can go as far as Tiki, Economical Delivery, Trusting Social, Kyber Network Amanotes, KiotViet: Fast Delivery.
Vietnamese talks about fintech companies with the best growth in Vietnam
Currently, over 70 per cent of the fintech companies in Vietnam are startups. In general, 48 per cent of businesses are involved in the payment industry and offer online payment services or digital payment solutions to consumers and merchants, including 2C2P, VTPay, OnePay, VTCPay, BankPlus, VinaPay, VNPay, and Senpay.
First, one of the first financial tech companies to mention is online mobile services Joint Stock Company operating under the MoMo brand. Vietnamese citizens have grown to rely on MOMO as their trustworthy e-wallet aide. MOMO solidifies its position in the Vietnamese fintech market with user-friendly features.
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Ms. M, a 30-year-old Hanoi resident, describes how satisfied she is with MOMO wallet, “I appreciate that MOMO accepts payments through IOS or Facebook for foreign service packages since it makes it easier for me to send money fast to others”
No Vietnamese person who is addicted to online shopping on e-commerce sites is unaware of Shopee and the ShopeePay e-wallet. With ShopeePay e-wallet products, users will enjoy countless exclusive promotions from Shopee.
ShopeePay e-wallet has changed its name twice, formerly TopPay, then changed to the new name AirPay. The second name change from June 8, 2021, Airpay has linked with Shopee and changed its name to ShopeePay.
“It’s fantastic that the online store you use has its own e-wallet integrated. I can use Shopee to pay for orders, get cinema tickets, and top off my e-card addition to paying for orders. phone, many advantages,” 25-year-old Ho Chi Minh City resident Mr. H shared.
Vietnam’s fintech industry aspires to the top spot
Vietnam’s population is large and young, with a high percentage of Smartphone users, reaching 72 per cent, along with the rapidly growing trend of the e-commerce industry. Government support in promoting mobile payments, the percentage of young people that are dominant in a country with a large population like Vietnam will create a huge potential demand for fintech.
The demand for personal finance in Vietnam is expected to continue to grow shortly. Also, according to the SBV’s forecast, by 2025, personal credit will account for about 24 per cent of the technology application market in financial services. This shows that the Vietnamese market has a high potential for development, which can become a very attractive market for fintech products.
The year 2021 has given the global digitalisation process pace thanks to COVID-19’s extensive effects, confirming a strong basis for the global fintech sector’s recovery. This year also saw Vietnam’s fintech market see exceptional growth, as evidenced by the rise in foreign currency investments, the adoption of digital financial services, and favorable government regulations. As a result, with more varied and improved products, Vietnam emerges as a key location for fintech growth.
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