Fintech in Vietnam
- An overview of the Vietnamese fintech landscape
- Considerations for market entry into Vietnam
- Growth opportunities for Australian fintech companies
Why Vietnam, Why Now for Australian Fintech?
Fintech has shown particular promise due to the low uptake of traditional banking and insurance services. Around 70% of the Vietnamese adult population do not have a bank account, the highest within the ASEAN region. Vietnamese consumers are leapfrogging traditional banking offerings, going straight to mobile payment platforms.
This is being driven by consumer digital readiness, increasing domestic spending power, and strong government support to consolidate the regulatory framework. Around 97% of Vietnam’s internet users primarily go online via their smartphones (Hootsuite/We Are Social, 2021). The Vietnamese Government's National Digital Transformation Program towards 2025, vision to 2030 prioritises digitisation, helping to spur fintech innovation, with cashless payments and financial inclusion identified as government priorities. (Source: Vietnam CSP, draft update).
Cautious optimism, broad opportunities
Whilst the sector is emerging, the opportunities to plug-into Vietnam's fintech market for start-ups, scale-ups and established Fintechs expanded well beyond mobile and eWallets. Demand amongst Vietnamese banks for technical and commercial expertise is growing, with many looking to partner with domestic and international fintech businesses to provide innovative customer solutions. Australian businesses may be well-placed to meet this demand.
Growth opportunities for Australia’s fintech companies include:
- Data analytics, big data and artificial intelligence
- Insurtech, wealth management and neobanking
- Risk management and cybersecurity, including regtech, anti-money laundering and fraud prevention solutions.
- Front-end products and services, such as Electronic Know Your Customer (eKYC)/digital identity, consumer and SME lending and products that support the digitalisation of sales and marketing.
- Backend systems, including products that support the digitalisation of databases and processes. Technologies utilised could include blockchain, cloud computing, robotic process automation, among others.
- Navigating Vietnams’ fintech opportunities requires a well-thought out strategy, it also helps to invest time and resources to understand the country, its people and businesses.
- Be prepared for product localisation for the local market.
- Working with a proficient local partner can accelerate your go to market, opening new channels and networks.
For more information, please visit the Asialink Business site.