Fintech Development Prospects in Vietnam
At the Vietnam Tech Impact Summit 2024 (VTIS 2024), speakers acknowledged that the development of Fintech not only presents opportunities for businesses but also drives the economy’s deeper integration with the world.
Regarding trends, the shift from Web 2.0 to Web 3.0 is shaping the future of the financial technology industry. According to Le Thi Le Hang, SSI Securities’ Strategy Director, this evolution is not just changing how financial services are delivered but also creating entirely new business models.
As the discussion moderator, Ms. Hang posed a question: “In the next 5 to 10 years, where will Vietnamese Fintech firms stand in the transition from Web 2.0 to Web 3.0? And will this shift be complete, or will there be a coexistence of the two technology generations?”
The workshop’s speakers agreed that Web 3.0 would not entirely replace Web 2.0 but would develop in parallel, offering more flexible financial experiences. Le Lan Chi, CEO of Zalopay, emphasized: “Many users still prefer centralized services with 24/7 customer support. Thus, the transition will be a long journey with the coexistence of both platforms.”
Additionally, Ryan Kim, co-founder of Hashed Investment Fund, believes that Vietnam is in a unique position to harness the potential of blockchain – the core foundation of Web 3.0. He shared, “Vietnamese founders have the capability to create innovative digital products, such as blockchain games and digital intellectual property. This is an opportunity for Vietnam to develop products with global reach.”
Cross-Border Fintech Development Opportunities
The above discussions highlight that Vietnam has increasing opportunities to develop its Fintech industry. In terms of significance, Fintech’s evolution not only enhances user experiences but also opens up vast possibilities for the economy. One of the most apparent advantages is the easier capital mobilization.
“As Fintech advances, we can raise capital across borders through digital platforms such as ICOs. This not only reduces costs but also enables Vietnamese businesses to access international markets,” emphasized Nguyen Hoang Giang, Chairman of DNSE Securities.
Moreover, cross-border Fintech gives rise to groundbreaking financial products like borderless payments and swift, cost-effective money transfers. Le Lan Chi assessed that international payment costs are currently very high, especially for small businesses in Vietnam. Fintech can address this issue by lowering costs and accelerating transaction speeds, facilitating businesses’ access to global markets.
Furthermore, blockchain, with its transparency and borderless nature, has the potential to revolutionize the financial market. Ryan Kim believes, “Digital assets have no national boundaries. This enables products created in Vietnam to quickly reach a global scale.”
The speakers affirmed that cross-border Fintech will create groundbreaking financial products.
What Should Vietnam Do to Seize These Opportunities?
However, to seize these opportunities, Vietnamese Fintech firms must confront the challenge of upgrading their products and services. The development gap between domestic and international companies remains a significant issue. According to Nguyen Hoang Giang, Vietnamese securities firms need to focus on providing products that help users access digital assets more securely and conveniently.
Looking ahead, experts at the workshop predicted that Fintech would become the primary driver of innovation in Vietnam’s financial sector. Mr. Giang expressed optimism: “In the next 5 to 10 years, Vietnamese investors will have access to more financial services, from cross-border transactions to utilizing AI for investment strategy optimization.”
To achieve this goal, experts agreed that Vietnam needs to build a sustainable Fintech ecosystem. Lynn Hoang, representing Binance, emphasized the importance of a smart legal framework: “We need clear regulations and support to encourage innovation and protect users.”
Additionally, investing in education and training a high-tech workforce is crucial. Le Lan Chi hopes that Fintech will deliver personalized financial products, especially insurance and payment services for small businesses.
Overall, Fintech is opening a new chapter for Vietnam’s financial sector, with the potential to transcend traditional boundaries. However, to truly go international, domestic Fintech companies must enhance their technology investments, improve their products, and seize opportunities arising from global integration. With a clear vision and policy support, Vietnamese Fintech can become a game-changer in the global financial system.
Le Lan Chi, CEO of Zalo Pay, one of Vietnam’s leading Fintech firms, shared her insights at the event
The Vietnam Tech Impact Summit 2024 (VTIS 2024) was a two-day event (December 3-4) held at the National Convention Center and organized by two leading companies in the fields of technology and securities finance, FPT Corporation and SSI Securities.
Centered around four main themes – Fintech, AI, Blockchain, and Game – VTIS 2024 featured over 100 top global speakers from JP Morgan Chase, Qualcomm, Google, AWS, Binance, Kucoin, Bitget, MEXC, OKX, Bingx, Tether, Strant, U2U Network, Holdstation, Maxx Capital, AIxBlock, Lbank, Aethir, Coinex, ATX, Din, Weatfit AI, Beatvn, SightSea, and Flipster. The summit also included renowned domestic speakers from SSI Digital, SSIAM, VinAI, Zalopay, FPT, VietinBank, Axie Infinity, and Aura Network, among others.
The event was attended by representatives from over 500 businesses across more than 15 countries and territories, with nearly 20,000 participants.
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