The Vietnamese government has issued a policy decision aiming to dramatically reduce cash transactions and improve electronic payment methods by 2020. The new plan would not only provide the infrastructure and equipment to turn Vietnam into a cashless economy, it also intends to fundamentally change the payment habits of Vietnamese people. More specifically, the plan seeks to reduce the number of cash transactions to less than 10% of total market transactions in all supermarkets, shopping malls and distributors by 2020; 70% of transactions related to utility services and telecommunications; and 50% of all urban households.
With a population of about 95 million, of which about 70% are between 15 and 64 years old, Vietnam’s Internet economy has great potential, and yet fintech remains a relatively untapped opportunity. According to the Fintech Vietnam Start-up Report 2016, Vietnam’s fintech industry is still in its infancy, with little more than 30 players, who are mostly tackling the payments market.
"Fintech Challenge Vietnam"
With the desire to create an enabling ecosystem for financial innovation that improves access to financial services for Vietnam’s micro-, small- and medium-sized businesses and other underserved populations, the State Bank of Vietnam and the Asian Development Bank are co-organizing the “Fintech Challenge Vietnam,” a competition aimed at bringing solutions and/or ideas from international fintech companies in five areas: e-KYC, Blockchain, peer-to-peer lending, open APIs and payment. This is an opportunity for Swiss fintech companies to introduce themselves into this promising market. The best idea or solution will be honored and ideally will be implemented if the commercial sector buys it. The global call will close on January 18. It might be in your interest to visit its webpage at https://fintech.mekongbiz.org/
How you can benefit from these opportunities
If you would like to learn more and benefit from the opportunities related to the fintech market in Vietnam, please get in touch with our S-GE Consultant for South East Asia, Angela Di Rosa.