At the Australia-Vietnam Technology Forum 2024, hosted by the Australian Trade and Investment Commission (Austrade) on June 25, Mr. Tran Huyen Dinh, Chairman of the Fintech Application Committee (VBA), Vietnam Blockchain Association, shared insights into the rapid growth of the fintech industry. With advancements in science and technology, the fintech sector has experienced a boom in recent years. Statistics show that from 2018 to 2022, the number of new fintech companies surged by over 180%, with more than 260 startups. The Vietnamese fintech market is projected to hit the US $18 billion mark by the end of 2024.
Currently, the Vietnamese fintech market is developing across various segments, primarily focusing on personal finance (digital asset management, money transfer services), digital payments (online shopping, POS), alternative finance (P2P lending, etc.), Insurtech (online insurance for life, health, and more), and B2C financial services (banking, credit, insurance).
Speaking about growth opportunities, Mr. Dinh highlighted that Vietnam boasts one of the highest mobile phone and internet usage rates in the region. Over 70% of the population uses mobile phones, with more than 60% being internet users. This technological infrastructure has significantly contributed to the advancement of fintech. Additionally, the rise of mobile applications has made it easier for users to access financial services through their devices, enhancing convenience and accessibility.
The Australia-Vietnam Technology Forum 2024, organized by the Australian Trade and Investment Commission on June 25. |
Despite the promising growth potential, experts at the forum acknowledged several challenges and risks for investors in the Vietnamese fintech market. Mr. Dinh pointed out that the legal framework for fintech is not yet fully developed, especially for emerging technologies. The pace of updating, amending, and supplementing laws has not kept up with the rapid technological advancements. Additionally, fintech companies often face challenges related to business models, governance structures, and long-term development strategies, hindering their potential for exponential growth.
Another concern is the risk of security breaches, including identity theft, information, and data theft. This not only causes losses for individual users but also impacts the developers themselves. Ms. Louise Adams, CEO of Aurecon, referenced a report on Vietnam’s cybersecurity situation in 2023, which revealed that over 83,000 computers and servers were attacked by ransomware, an increase of 8.4% from 2022. The alarming rate of data leakage has led to a spate of online scams and fraud.
Furthermore, consumer awareness about fintech products in Vietnam remains limited. People are not sufficiently aware of the importance of safeguarding their personal information, which poses risks to both consumers and financial institutions.
According to Mr. Daniel Boyer, Deputy CEO of the Australian Trade and Investment Commission, the Vietnamese government and businesses are prioritizing the digitization of services and investing in new technologies. As per reports by Google, Temasek, and Bain & Company, Vietnam’s digital economy grew by 19% in 2023, surpassing US $30 billion and ranking third in Southeast Asia after Indonesia and Thailand. By 2030, Vietnam’s digital economy is expected to reach a value of US $120-200 billion.
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