Fintech industry in Vietnam to hit US$18bn by 2024

The fintech industry in Southeast Asia has experienced a surge in demand during the COVID-19 pandemic. The region’s adoption of fintech technology has surpassed expectations, with digital payments, digital wallets, and digital financial services being the most popular solutions. Singapore currently leads the region in financing volume, but other countries are quickly catching up. Banks have also started incorporating more fintech solutions into their products and services to remain relevant in the industry.

Fintech holds the promise of reducing the number of unbanked individuals in Southeast Asia, which is approximately 50%. Fintech services in Indonesia, the Philippines, and Vietnam are expanding their reach to cater to this demographic. The Vietnamese fintech industry is experiencing significant growth, with analysts predicting that the market will reach $18 billion by 2024, despite stiff competition and high barriers to entry. The e-wallets, online loans service, and e-money segment account for 93% of all venture investments in Vietnam.

The number of fintech users in Vietnam has grown by 152.8% since 2016, with 29.5 million new users added. Demand for digital services, particularly transactions, payments, and wallets, is strong among the population. Vietnam’s young and promising fintech market has seen its valuation soar from $0.7 billion in 2016 to $4.5 billion at present. The government is expected to introduce favourable legislation to promote financial technologies, and the fintech regulatory sandbox and the legal framework for digital assets and cryptocurrencies are also set to undergo further development.

If the current trend continues, Vietnam’s fintech market is poised to hit the $18 billion mark. Despite facing tough competition and high barriers to entry, Vietnam’s fintech industry is growing rapidly, with digital payments, digital wallets, and digital financial services driving demand. The government’s increased involvement in the industry and the favourable legislation being introduced will likely fuel further growth in the sector.