Vietnam sets a winning fintech growth model for Southeast Asia

Its government plays a huge role in the country's fintech hub emergence.

Vietnam sets a winning fintech growth model for Southeast Asia | BEAMSTART News

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Vietnam becomes a breeding ground for fintech industry this year as the country accounts for up to 36% of fintech investment from VC in Southeast Asia's — a drastic increase from its 0.4% in 2018.

The government plays a substantial role to push Vietnam into a cashless society by giving technology access from overseas to startups with the Law on Technology Transfer, and funnelling fund into new startups from implementing tax breaks to hi-technology sectors and special technology zones.

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With the rise of Vietnamese fintech startups, the market in the country sets to reach $9 billion in value by 2020.

On top of that, the fintech ecosystem sees a huge boost from the partnerships forged between 72% of fintech startups with the local banks — banks are seeing benefits with its increased internet banking payments by 19.5% in 2018.

Investors acknowledge the long-term growth in Vietnam's fintech sector as the country is charging forward in building the necessary facilities, partnerships, and incubating its talent pool for the strong growth in its fintech market.

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