Fintech firms need clear policy to develop

Vietnam needs a proper legal framework for financial technology (fintech) services, a State Bank of Vietnam (SBV) official said on August 20.
Fintech firms need clear policy to develop
Fintech firms need clear policy to develop ảnh 1Speakers at a meeting on August 20 discuss problems with the Vietnamese fintech sector. (Photo: thoibaotaichinhvietnam.vn)

Hanoi (VNS/VNA) - Vietnamneeds a proper legal framework for financial technology (fintech) services, aState Bank of Vietnam (SBV) official said on August 20.

Ngo Van Duc, Deputy Director ofPayment Method Supervision at the State Bank of Vietnam, said there was no lawor regulation on the management of fintech businesses and their services.

The development of fintechbusinesses had not met expectations in recent years, he said.

According to the SBV, there arenow about 150 active fintech firms – most of which focus on payment methods –and 30 companies that are licensed by SBV and operate as payment middlemen.

Fintech businesses are also inother fields such as bank lending, electronic confirmation, blockchainapplications and individual financial services.

Therefore, a fintech law must beprovided to protect the rights and benefits of both service suppliers andcustomers, Duc added.

Fintech helped ease financial andmonetary transactions, making them more convenient, more accurate and faster.But it also means fintech firms may find opportunities to carry out illegalactivities.

Regulations often tighten theoperation of fintech firms, not foster the conditions for them to function,said lawyer Phung Anh Tuan, deputy chairman and general secretary of theVietnam Association of Financial Investors (VAFI).

Two decrees were issued by theGovernment in July 2016 and February 2019 to replace Decree 101/2012/ND-CPregulating cashless payment. The two decrees cap the limit of foreign ownershipin local fintech firms at 30 percent of 49 percent.

Meanwhile, maximum purchase of apersonal e-wallet is 20 million VND each day and 100 million VND each monthwhile that of an institutional e-wallet is 100 million VND each day and 500million VND each month. Each person can only use one e-wallet provided by thefintech firm.

“Fintech companies need foreigncapital to develop further, invest more in technology, marketing and human resources.The limit of foreign capital inflow may hinder their growth,” Tuan said.

Duc said the central bank hadalmost completed the policy on piloting a regulatory sandbox – in whichgovernment agencies and businesses are free to experiment with new ideas – andit would submit the plan to the Prime Minister for approval.

The policy aimed to create asuitable environment for businesses to test their products and services andmeet market demand, he said.

In 2019-20, the central bankwould continue improving its payment-related policies, especially electronicpayment, and create a test management mechanism for fintech firms after itsregulatory sandbox policy was passed.-VNS/VNA
VNA

See more

Representatives from industry associations share insights on Vietnam’s market trends. (Photo: VNA)

Vietnam, Thailand boost industrial trade exchange

Trade between Vietnam and Thailand reached 20.18 billion USD in 2024, up 6.4% year-on-year. Thailand remained Vietnam’s top ASEAN trade partner, accounting for 24% of its total trade with the bloc.

Representatives from Lao and Vietnamese agencies at the signing ceremony. (Photo: VNA)

Vietnam, Laos strengthen energy cooperation

A 1,200 MW wind power plant in Nong district, Laos’ Savannakhet province is expected to export 1,526 kWh to Vietnam annually once its first phase completes by the end of 2027, and additionally 1,112 million kWh per year after its second phase becomes operational in 2030./

A view of the Hanoi skyline. While rental properties continue to be in demand, there has also been a notable rise in the number of foreigners looking to buy houses. (Photo: VNA)

Housing demand from foreigners in Hanoi rises

Over several years, Hanoi has increasingly become an attractive destination for foreign workers, with approximately 10,000 new foreign workers are granted licences to work in the city each year.

A high-tech corn, sorghum and grass farm in Nghe An province (Photo: VNA)

Realising circular economy to achieve sustainable development goals

Developing a circular economy has been recognised as one of the priority directions to achieve overarching goals such as waste management, efficient resources utilisation, environmental protection, disaster prevention, and climate change adaptation in the country's next development phase.