A customer makes payment by QR code for his order online. (Photo: VNA) HCM City (VNS/VNA) – Ho ChiMinh City, the country’s commercial hub, has the potential to become a fintechhotspot of the country and region, according to experts.
Lam Nguyen Hai Long, Chairmanof the HCM City Computer Association, said: “There are eight reasons HCM Citycan become the country’s fintech hub.
“It is now thedriving force of the national economy. The city has a large number of softwareand technology firms, hi-tech parks and technology incubators. It is also theplace for fintech companies to start up.
“It is home to thecountry’s first and largest stock exchange. Fifteen commercial banks, includingfour international ones, and many international investment funds areheadquartered in the city. This is where businesses can find a skilled workforce.The city has the backing of overseas Vietnamese from the US and EU.
“HCM City is closelyconnected with the regional financial centre, Singapore, thanks to itsgeographical location. According to the 2018 Global FinTech Hub report, HCMCity is one of the region’s emerging fintech centres.”
In 2002, the PartyPolitburo’s Resolution No. 20 determined HCM City will be developed into afinancial centre of the country and, gradually, the region, and the goal wasmentioned again in Resolution No. 16 in 2012.
“Therefore, this [HCMCity] is the right place for fintech start-up projects.”
Concurring with him,Pham Xuan Hoe, Deputy Director of the Banking Strategy Institute under theState Bank of Vietnam, said the city has ideal conditions to become the fintechhub of the country and region, in order to realise its potential, but thatneeds breakthrough policies.
Vietnam is considereda promising market for fintech companies thanks to its young demographics,strong e-commerce growth and growing smartphone and internet penetration, Hoesaid.
It has four publicbanks, 28 private banks, 1,183 people's credit funds and numerous other creditand financial institutions with whom fintech firms could tie-up for mutualbenefit, he added.
“The Government wantsto create a cashless society and increase banking penetration, especially tobenefit small- and medium-sized enterprises and remote areas. Fintech plays animportant role in this.”
Long from the HCMCity Computer Association said the number of fintech companies has increasedfrom 120 last year to 154 by mid-2019, and they have attracted US$1.1 billionin investment capital.
Their financialsolutions have penetrated the retail and consumer credit markets, he said.
Hoe told VietnamNews that: “According to international orgnisations, Vietnam’s fintechmarket will be worth 9 billion USD by 2020. They had earlier forecast it would reach7-8 billion USD by 2020, but with the strong growth recently, they haveadjusted their forecasts.”
Fintech companies areoperating in all financial segments, including payment solutions (nearly 61 percent),crowdfunding (10.5 percent), bitcoin/blockchain (7.89 percent), and POS/mPOSmanagement (5.26 percent), he said.
Tran Viet Vinh, CEOand founder of FIIN Company, said fintech is popularising modern and convenientfinancial services among Vietnamese.
“The development offintech is creating opportunities for people to access funds quickly andconveniently, and immediately resolve their difficulties. This is the biggestcontribution to eliminating usury.”
Hoe said: “Mostfintech companies in Vietnam (72 percent) have chosen to cooperate with banksto develop together.
“Fintech helpedincrease payments through internet banking by 19.5 percent last year andthrough mobile banking by 170 percent.
“The rapid growth infintech has ushered in a transformation in the financial and banking sector andoffers consumers more convenient and diverse products and services.
“But with such newmodels, we have to think about creating a legal framework for them to develop.”
According to experts,fintech faces considerable challenges related to cybersecurity, human resourcesand policies and regulations to support the development of an eco-system.
Long said Indonesia,Malaysia, Singapore and Thailand have a regulatory sandbox, a frameworkset up by a financial sector regulator to allow small-scale, livetesting of innovations by private firms in a controlledenvironment under regulators’ supervision, while the Philippines and Vietnamdo not.
He wanted the Governmentto quickly develop a legal framework and offer incentives to attract investmentfrom large tech companies for developing fintech platforms./.
Lam Nguyen Hai Long, Chairmanof the HCM City Computer Association, said: “There are eight reasons HCM Citycan become the country’s fintech hub.
“It is now thedriving force of the national economy. The city has a large number of softwareand technology firms, hi-tech parks and technology incubators. It is also theplace for fintech companies to start up.
“It is home to thecountry’s first and largest stock exchange. Fifteen commercial banks, includingfour international ones, and many international investment funds areheadquartered in the city. This is where businesses can find a skilled workforce.The city has the backing of overseas Vietnamese from the US and EU.
“HCM City is closelyconnected with the regional financial centre, Singapore, thanks to itsgeographical location. According to the 2018 Global FinTech Hub report, HCMCity is one of the region’s emerging fintech centres.”
In 2002, the PartyPolitburo’s Resolution No. 20 determined HCM City will be developed into afinancial centre of the country and, gradually, the region, and the goal wasmentioned again in Resolution No. 16 in 2012.
“Therefore, this [HCMCity] is the right place for fintech start-up projects.”
Concurring with him,Pham Xuan Hoe, Deputy Director of the Banking Strategy Institute under theState Bank of Vietnam, said the city has ideal conditions to become the fintechhub of the country and region, in order to realise its potential, but thatneeds breakthrough policies.
Vietnam is considereda promising market for fintech companies thanks to its young demographics,strong e-commerce growth and growing smartphone and internet penetration, Hoesaid.
It has four publicbanks, 28 private banks, 1,183 people's credit funds and numerous other creditand financial institutions with whom fintech firms could tie-up for mutualbenefit, he added.
“The Government wantsto create a cashless society and increase banking penetration, especially tobenefit small- and medium-sized enterprises and remote areas. Fintech plays animportant role in this.”
Long from the HCMCity Computer Association said the number of fintech companies has increasedfrom 120 last year to 154 by mid-2019, and they have attracted US$1.1 billionin investment capital.
Their financialsolutions have penetrated the retail and consumer credit markets, he said.
Hoe told VietnamNews that: “According to international orgnisations, Vietnam’s fintechmarket will be worth 9 billion USD by 2020. They had earlier forecast it would reach7-8 billion USD by 2020, but with the strong growth recently, they haveadjusted their forecasts.”
Fintech companies areoperating in all financial segments, including payment solutions (nearly 61 percent),crowdfunding (10.5 percent), bitcoin/blockchain (7.89 percent), and POS/mPOSmanagement (5.26 percent), he said.
Tran Viet Vinh, CEOand founder of FIIN Company, said fintech is popularising modern and convenientfinancial services among Vietnamese.
“The development offintech is creating opportunities for people to access funds quickly andconveniently, and immediately resolve their difficulties. This is the biggestcontribution to eliminating usury.”
Hoe said: “Mostfintech companies in Vietnam (72 percent) have chosen to cooperate with banksto develop together.
“Fintech helpedincrease payments through internet banking by 19.5 percent last year andthrough mobile banking by 170 percent.
“The rapid growth infintech has ushered in a transformation in the financial and banking sector andoffers consumers more convenient and diverse products and services.
“But with such newmodels, we have to think about creating a legal framework for them to develop.”
According to experts,fintech faces considerable challenges related to cybersecurity, human resourcesand policies and regulations to support the development of an eco-system.
Long said Indonesia,Malaysia, Singapore and Thailand have a regulatory sandbox, a frameworkset up by a financial sector regulator to allow small-scale, livetesting of innovations by private firms in a controlledenvironment under regulators’ supervision, while the Philippines and Vietnamdo not.
He wanted the Governmentto quickly develop a legal framework and offer incentives to attract investmentfrom large tech companies for developing fintech platforms./.
VNA
