Author: Fintech News Vietnam

Proptech is rapidly growing in Vietnam, fuel by the country’s young demographics, tech savvy population and available funding and incentives for tech startups, according to JLL Vietnam, a commercial real estate services firm. In Vietnam, the development of proptech has mostly been prominent in the market segments of residential and office, with more than 50% of proptech players active in the country serving the two sectors, JLL says. As the industry grows, the company notes a trend that’s begun to emerge: proptech startups partnering with fintechs. It cites for example property management companies trying to connect and embed e-wallets into…

Since 2013, consumer lending in Vietnam has increased strongly, driven by robust economic growth and a rising middle-class. Over 2014 – 2018, the top 11 Vietnamese banks, whose combined loans make up roughly 70% of system loans, had expanded their consumer portfolios by a 28% CAGR, according to Fitch Ratings’ Consumer Lending in Vietnam report. Meanwhile, non-consumer credit grew 15% CAGR. Among the key factors driving rising loan demand in Vietnam, Fitch Ratings cites Vietnam’s increasing urban population, rising contributions from domestic consumption, and growing acceptance towards mortgage financing. These factors, combined with the emergence of cutting-edge technologies and digital…

In Vietnam, digital and mobile payment is undeniably the most developed and crowded fintech segment. According to the State Bank of Vietnam (SBV)’s recently updated list, there are currently 30 licensed non-bank payment intermediary intermediary services in the country with around 20 of these offering e-wallets, according to Nikkei Asian Review. In the space, M_Service’s MoMo mobile payment app is the undisputable leader with an estimated 10 million users, and Vietnam’s favorite e-wallet, according to a recent survey conducted by Nhip Cau Dau Tu magazine. MoMo is a mobile wallet and digital payment application that allows users to make cash…

Vietnam’s first and largest P2P lending platform, Vaymuon.vn, announces the close of seed round funding and celebrates its strategic partnership with VietinBank Insurance (VBI) in order to ensure peace of mind for borrowers and investors. With the breakthrough results after 2 years of pioneering in Vietnam, connecting nearly 2 million borrowers with nearly 400 thousand individual investors, Vaymuon.vn will continue to call for Series A round from 5 to 10 million USD to develop a comprehensive alternative financial services loop in Vietnam and expand to regional markets including Philippines, Myanmar, Cambodia, Thailand and Indonesia. The Strategic Partnership Vaymuon.vn – VietinBank…

The State Bank of Vietnam (SBV), the country’s central bank and main financial regulatory agency, has only granted payment licenses to four companies since April 2018. According to SBV’s website, Smart Net, Endenred, Paytech and EPay are the latest four companies to have received approval from the regulator to offer intermediary payment services services such as electronic payment portals, electronic money transfers services, and e-wallet services in Vietnam. HI-TECH Security and Development Investment Company Limited, which was part of the list in April 2018, has been withdrawn for unknown reasons. The addition of the four companies brings the total number…

Vietnam’s fintech sector is heating up as Singapore’s “super-app” Grab looks to staff up its financial services division in the country, hinting at plans to launch a lending offering soon. Grab introduced its postpaid service PayLater earlier this year for Singapore. Meanwhile, Go-Viet, an on-demand multi-service platform supported by Indonesia’s ride-hailing giant Go-Jek, is seeking managers for a new online payment service. Grab VN staffs up its financial services division In a LinkedIn job posting, Grab’s Vietnam division says it is looking for a financial services marketing manager with a special focus on lending. “We are hiring for an experienced…

Three years have passed since Lifestyle Project Management and Vietnam Prosperity Joint Stock Commercial Bank (VPBank) launched Timo, the country’s first bank that has no traditional branches or transaction offices. Formed in March 2015, Timo officially opened its doors in early 2016 with the launch of the Timo Hangout in Ho Chi Minh City. Timo Hangouts serve as bank branches but without the allure of one. Instead of a traditional branch with tellers, Timo Hangouts have a cozy coffee shop and are used to open accounts or to simply meet up with friends. Since its inception, Timo has been rapidly…

A new book exploring Vietnam’s startup ecosystem was released earlier this month, detailing an American entrepreneur’s experience in supporting, and working with Vietnamese entrepreneurs across the nation. The book aims to capture the successes of and challenges facing Vietnam’s youth, local startups, and foreign entrepreneurs—in a rapidly transforming nation. Andrew Rowan’s new book, titled Startup Vietnam: Innovation and Entrepreneurship in the Socialist Republic, features ten chapters across three sectors aimed at showcasing an on-the-ground and in-depth view of Vietnam’s startup environment in the Indo-Pacific regional and global contexts. Here’s What We Got out of It Vietnam is a very young country with…

With a growing middle class, rising Internet penetration, and a population of nearly 100 million people, most of whom are young and tech-savvy, Vietnam has all the needed characteristics to become a major fintech market. In the past years, the Vietnamese fintech startup ecosystem has witnessed significant growth and is now home to some 120 companies and brands covering a broad range of services, from digital payments and alternative finance, to wealth management and blockchain. With 35 startups and platforms, payments is the most populous fintech segment. Notable companies and brands in this segment include M_Service, the developer of mobile…

Deputy Prime Minister Vuong Dinh Hue announced during a ministerial meeting recently that the Vietnamese government will soon issue a decision to allow a pilot implementation of peer-to-peer (P2P) lending before officially developing a regulatory framework for the new fundraising method. During the pilot, P2P lending would be restricted to connecting lenders and borrowers. P2P lending companies would not be allowed to mobilize capital but will only act as intermediaries to connect lenders and borrowers, according to a report by Vietnam News. “Authorities must quickly have access to new business models, and at the same time, enhance supervision to discover…

Fintech continues its momentum in Vietnam with local startups gaining significant traction from foreign investors. These raised a record of US$117 million in 2018, the maximum funding in Vietnamese startups for that year. Vietnam’s rapidly evolving fintech sector has been largely driven the country’s young, digitally-savvy population, the high mobile phone and Internet penetration rate, and the government’s push to curb cash usage and promote digital payments. As Vietnam’s financial landscape continues its digitalization journey, the following 11 fintech companies are some of the sector’s most exciting ventures to keep a very close eye on: bePOS bePOS is a startup founded in…

Fintech development is accelerating in Vietnam with companies in the sector attracting US$117 million last year, the maximum funding in Vietnamese startups in 2018. Fintech surpassed e-commerce at US$104 million and other sectors, according to funding data by local accelerator Topica Founder Institute, showcasing the eagerness of investors to take part in Vietnam’s fintech opportunity. Vietnam’s rapidly evolving fintech sector has been largely driven the country’s young, digitally-savvy population, the high mobile phone and Internet penetration rate and the government’s push to curb cash usage and promote digital payments. Vietnam’s decision to become cashless by 2020 was announced in 2017…

Earlier this month, bankers and fintech experts gathered in Vietnam to discuss the future of banking, the evolving payments landscape, and digitalization in the financial industry. Representatives of Deloitte, Asia Commercial Bank, Saigon Commercial Bank, Oracle, Fintechnews.sg and BankClub took part in two events organized in Hanoi and Ho Chi Minh City in Vietnam by American multinational computer technology firm Oracle during which they covered topics such as the Vietnam banking landscape, open banking, digital banking and payments innovation. Gaurav Goel, director of Deloitte, presented the numerous emerging forces shaping the future of banking, which include open banking and API standards,…

TADA, launched by a Singapore-based startup MVL, made its presence in Vietnam on Monday. The news comes less than a week after its launch in Cambodia. TADA – which means “let’s ride” in Korean – uses blockchain technology to curb the lack of verifiable information as well as lack of trust in vehicles. This nascent tech is used to store records such as payment transactions, vehicle movements, accidents and keep track of vehicle maintenance for potential car buyers. “With this technology [blockchain], we wish to provide higher value in term of balance between the rider’s fares and the driver’s 0%…

Fintech is gaining popularity around the world including in Vietnam where experts and industry observers predict strong growth, driven by the country’s low banking penetration and young and increasingly affluent population. “Vietnam has strong growth potential for fintech development, and technology startups specializing in financial services are emerging, led by those offering digital payment services,” rating agency Moody’s said in a report released in November 2018. About 80 fintech companies have sprung out in Vietnam in the past years, most of which operating in the digital payments space. These raised just US$3 million in funding in 2017 but strong growth…

Grab, Southeast Asia’s first decacorn valued at more than US$10 billion, began its humble beginnings as a ride-hailing app but has since evolved into one of the region’s “super app,” providing varied services ranging from food delivering, logistics services, and financial services across markets that include Indonesia, the Philippines, Vietnam, Thailand, Myanmar, and Cambodia. The Singapore-headquartered tech firm, originally from Malaysia, started expanding its offerings in 2015 with the introduction of its motorcycle rides service GrabBike but it’s only in 2016, that it unveiled plans to develop a payments platform, introducing the same year the GrabPay cashless digital wallet service.…

Cashless payments are booming in Vietnam, more than doubling in value over the first three quarters of 2018. In particular, transactions over mobile apps and digital wallets rose by an impressive 126% and 161%, respectively, according to Department of Payments at the State Bank of Vietnam. “Mobile payment is becoming a new trend with the rise of technologies such as QR codes, contact and contactless payments, and the tokenization of card information,” Nghiem Thanh Son, deputy director of the department, said, quoted by VN Express. The first months of 2018 saw the number of users and the value of transactions…

Vietnam has been experiencing a digital wave in its financial and banking industry, with payments through mobile banking services surging by a whopping 144% per year over the past five years, experts said at a conference last week. During the conference on digitalizing the banking industry, held in Hanoi last week, Pham Tien Dung, director of the State Bank of Vietnam (SBV)’s payment department, cited data from an SBV survey released earlier this year, noting that banks have been heavily investing into digitalizing their services and operations. By the end of April this year, 94% of local banks had invested…

On September 26, 2018, the National Economics University in Hanoi officially held a launch ceremony for the new International Bachelor Program in Financial Technology. Attending the event were Prof. Dr. Tran Tho Dat, principal of the school, Assoc. Prof. Jenho Peter Ou, vice president of School of Management at Asia University, Taiwan, Ms. Alice Chieng, education counselor at the Taipei Economic and Cultural Office, as well as several program leaders and lecturers of the National Economics University. In his welcoming speech at the opening ceremony, Prof. Dr. Tran Tho Dat congratulated the new students admitted to the bachelor program in…

Peer-to-peer (P2P) lending is becoming increasingly popular in Vietnam with new players entering the market and regulators moving forward with creating a favorable environment. In September, a new company called Megalend Viet Nam Investment and Trading Corporation made its debut in Ho Chi Minh City with a chartered capital of VND 5 billion (US$214, 000). The company operates a a P2P lending platform targeted at small and medium-sized enterprises (SMEs), startup enterprises, especially those in high-tech agriculture and households. “Megalend Viet Nam targets to become one of the largest P2P lending platforms in Vietnam in the next three years,” said…