As the country aims to move towards a cashless society, Vietnam’s government targets to reduce cash transactions to 10% and increase bank accounts in the population by 70% in 2020.

The fintech market reached USD 4.4 billion in 2017 and is estimated to accelerate by USD 7.8 billion in 2020, driven by rising bank penetration.

Solidiance’s latest white paper, ​“​Disruption by fintech: Transforming Vietnam’s Financial Services Ecosystem​”​, explores key drivers and current trends of fintech adoption in Vietnam, the key barriers as well as the future outlook in the market.

Although bank penetration in Vietnam is consistently growing, it still trails other Southeast Asian nations in the region. Vietnam’s ratio of banked citizens only reached 59% in 2017 while Thailand and Malaysia accounted for 86% and 92% respectively in the same year.

As Vietnam catches up with other neighboring countries, increasing internet and smartphone penetration, improvements in telecommunication infrastructure (3G & 4G), and growing income levels from the middle-class have significantly given rise to opportunities in Vietnam’s fintech space.

Among the three different fintech product segments – digital payment, personal finance, and corporate finance – digital payment solution leads the fintech service market share at 89%.

However, personal & corporate finance is expected to grow at a faster rate through 2025.

Vietnam’s burgeoning e-commerce sector

Vietnam’s burgeoning e-commerce sector with growing order value has further promoted intermediary payment platforms & digital payment services. Currently, there are ~35.4 million online shopping users and it is expected to accelerate to ~42 million, accounting for 42.5% of the projected population by 2021.

The average spend of USD 62 online will grow to USD 96 by 2021 and Cash on Delivery – the major means of payment – is expected to be replaced by digital payments & other modern payment methods, signifying ample opportunity for fintech firms to tap into.

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

Vietnam Increases weekly Overtime Hours quota to 60 hours

Vietnam’s National Assembly passed a Resolution on March 23 to increase overtime working hours from the current 40 hours to 60 hours a month. However, the total number of overtime working hours cannot exceed 300 hours annually.

COVID-19 in Vietnam: Travel Updates and Restrictions

In light of the recent COVID-19 outbreak, Vietnam has imposed several travel restrictions on those entering the country. As of December 29, 2021, Vietnam had confirmed 1,680,985 cases of COVID-19 with 31,362 deaths, though 1,264,282 of the patients, had recovered.

Vietnam’s Blue Economy Potential and Opportunities for Investors

The sea and coastal areas of Vietnam account for approximately 47-48 percent of the country’s GDP. Vietnam Briefing highlights some distinct characteristics of the blue economy as well as opportunities for investors.