The development of Financial technology in VietNam

Dear Professor Yu-Wei Chen,
My name is Lily. I come from VietNam. I’m a first year student of the
International Master of Financial Technology and Innovative Entrepreneur Program
(IMFI). I hope my assignment will help you to know more about the development of
the FinTech in my country.
I just graduated from my university in VietNam. At that time, I lived in HaNoi
City- one of the two the most dynamic cities in VietNam. It means that I have
opportunities to access to new technologies in my country. However, during the time I
have lived there, I see that most people still use cash in daily spending. The number of
people using financial technology applications is still very small. So in my opinion,
FinTech VietNam companies are still operating in small scale, in small number and in
the initial development stage. After that, I have had search information about that and
I have a lot of new knowledge about FinTech and the development status of FinTech
in my country.
According to the VietNam FinTech market report 2017, VietNam has a lot of
potential to develop Fintech. For example: In 2016, the percentage of people who use
the Internet is about 52%, the proportion of people who use smart phone is 72% in big
cities and 52% in rural area. There are more than 35 million e-commerce user (the
population of VietNam is about 97 million people and the structure is young
population), it means account for 36% of the population. Compared with other
countries in Southeast Asia, VietNam has low rate of using electronic financial
solutions, with only 59% of the population having a bank account, while Malaysia is
92% and Thailand is 86%. As a result, FinTech has many opportunities to develop in
VietNam.
Currently, VietNam has about 67 FinTech companies in operation. This number
very small when compared to other countries in the region. In 2017, Singapore has
about 490 FinTech companies, Indonesia has about 262 FinTech companies and
Malaysia has about 196 companies in this field.


67 FinTech companies in VietNam operating in different fields

According to the statistics, FinTech has
strongest growth in VietNam in the payment
segment because cash use rate up to 90%,
especially in the type of Electronic Wallets.
Currently, MoMo is the leading FinTech
company in VietNam market. MoMo was
founded in 2009, until now, MoMo has
established a network of 4000 agency nationwide
and MoMo has reached nearly 10 million users. MoMo offers a mobile e-wallet that
can be used to pay bills, transfer money recharge phone accounts, book tickets, shop,
watch movies, and eat – out, and more. In 2018, MoMo received the award
“VietNam’s number one Electronic Wallet” and MoMo is the only Vietnamese
Financial technology company in the list of Top 100 FinTech World published by
KPMG.


In another area – Digital Bank.
In VietNam, TIMO is the first digital bank in
VietNam. It was born in 2016 and it is
sponsored by Bank of VietNam joint stock
commercial prosperity- VPBank and Global
Online Financial Solution. TIMO does not
have branches or transaction offices like
traditional banks. All services are performed
online via the TIMO app on smartphone or on the website. Most transactions are done
quickly, free and high security with service guarantee at all times 24/7. TIMO helps
the customers to save time and money to go to the transaction offices.
I hope in the future, FinTech VietNam companies will increasingly develop to
help all transactions in society become more convenient and improve the quality of

life. I believe that the development of FinTech will contribute greatly to the
development of VietNam’s economy.
Thank you for reading assignment!