Fintech in Vietnam: Key Statistics & Trends for 2024 – Vietnam Fintech Sector Poised For Growth .In recent years, Asia has emerged as a powerhouse for fintech development, generating the highest fintech revenue worldwide. Vietnam emerges as a dynamic center for Fintech innovation in the Asia-Pacific, offering fertile ground for pioneering technologies and transformative financial solutions. With a digitally connected population, Vietnam is primed for fintech growth, with areas like digital payments, cryptocurrencies, and blockchain technologies flourishing rapidly.
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Fintech in Vietnam: Key Statistics & Trends for 2024 – Vietnam Fintech Sector Poised For Growth
The Growth of Fintech in Vietnam
Digital payments in Vietnam are projected to maintain their lead, with forecasts estimating transaction values to reach $40 billion by 2025. The personal finance sector is also expected to see rapid growth, driven by demand for digital financial solutions among Vietnam’s youthful and tech-savvy population. The boom in e-commerce has amplified this growth, with digital payments now being the most dominant segment in the fintech landscape. The surge in transaction volumes through e-wallets and mobile banking indicates that demand for digital payment solutions remains strong. Additionally, alternative lending is gaining attention from investors due to its significant growth potential. Vietnam’s young, digitally savvy population creates a fertile ground for these innovations to thrive.
Cryptocurrency Adoption in Vietnam
Vietnam ranks second globally in the ratio of the population with cryptocurrency ownership, according to a report by payment platform Triple-A. Around 21.2% of the Vietnamese population owns crypto, second only to that of the U.A.E at 34.4%.Bitcoin remains the most popular among Vietnamese investors, but GameFi coins have also made a mark thanks to Vietnam’s strong gaming community. Despite this enthusiasm, the lack of a comprehensive legal framework for digital assets creates a level of uncertainty among Vietnamese crypto users.
Emerging Trends and Future Outlook for Vietnam’s Fintech Sector
Green Fintech and Sustainable Finance
According to Tech.eu, the ESG Fintech space has seen a robust increase in capital funding on a global scale over the last three years, reaching around US$ 4.0 billion in 2022, up 2x CAGR for 2020-2022 (Tech EU, 2023). This indicates that global investors are beginning to recognize the important role that Fintech can play in addressing ESG challenges. These green fintech initiatives are gaining momentum, offering innovative financial products that prioritize sustainability. From eco-friendly investment opportunities to the integration of ESG criteria into decision-making processes, the fintech industry is paving the way for a more sustainable future.
Financial inclusion is key for growth
With over 77% of adults in Vietnam now holding bank accounts and a steady 20–25% annual increase in non-cash transactions, fostering financial inclusion is paramount (VietnamPlus, 2024). The government’s initiatives to promote mobile money and enhance services for underserved communities underscore this commitment. In 2020, the Prime Minister’s approval of the Vietnam national strategy for financial inclusion until 2025 signals a concerted effort to enable widespread access to financial services.
Digital Identity and Biometric Authentication
The Mastercard Payments Index 2022 reveals that most Vietnamese consumers (over 75%) prefer biometric authentication for both identity verification and payments, surpassing traditional methods (VCCI News, 2022). The Data Protection Decree 13, introduced in early 2023, bolsters consumer data and privacy rights. Biometric solutions, aligned with this legal framework, offer compliant and efficient options for businesses. Rapid advancements in digital identity solutions emphasize biometric authentication’s role in enhancing security and convenience. These measures are vital for fraud prevention and building user confidence. Additionally, blockchain technology ensures the integrity and security of digital identities through decentralized management systems.
AI-Powered Personalization:
In response to the growing demand for tailored services, recent studies reveal that 66% of customers seek personalized solutions (Salesforce, 2022). Harnessing the capabilities of artificial intelligence (AI), fintech companies now have the ability to meet these expectations. AI-driven chatbots, virtual assistants, and robo-advisors offer automated support and personalized advice, elevating customer engagement and fostering loyalty. By leveraging AI insights, fintech firms can continuously evolve to address the dynamic needs of their users. For example, Sacombank Vietnam’s collaboration with Temenos since 2004 has yielded significant technological advancements, notably with the implementation of Data Lifecycle Administration for the Temenos T24 basic banking system. This initiative showcased rapid cost savings, centralized knowledge management, and real-time data processing. Headquartered in Geneva, Switzerland, Temenos AG (SWX: TEMN) is a global leader in providing cutting-edge software solutions for banks and financial institutions. (Temenos, 2023)
By embracing these emerging trends and leveraging innovative technologies, fintech companies in Vietnam are well-positioned to capitalize on opportunities, address evolving customer demands, and drive growth in the dynamic and competitive fintech landscape of 2024.
This supportive environment, coupled with Vietnam’s demographic advantages and growing connectivity, indicates a bright future for fintech in Vietnam, making it an essential sector for investors and innovators alike.
