The fintech market in Vietnam is set to reach a staggering 7.8 billion USD by 2020, according to a report by Solidiance. The industry is thriving in Vietnam with the digital payment segment leading the way, accounting for 89% of the local market share. The personal finance and corporate finance segments are also set to experience significant Compound Annual Growth Rates (CAGRs) of 31.2% and 35.9%, respectively, between 2017 and 2025.
Here are some key takeaways:
- Fintech market in Vietnam to reach 7.8B USD by 2020.
- Digital payment segment leads with 89% market share.
- Growing middle class and e-commerce fuel industry growth.
This growth can be attributed to several factors, including the government’s plan to expand access to banking services to 70% of the population by 2020. In addition, the number of internet and smartphone users in urban areas has increased by 52% and 72%, respectively, in 2016. The growth of e-wallet services, driven by the small number of bank account holders, has also contributed to the overall expansion of the fintech market in Vietnam.
Middle Class Growth Fuels Fintech Expansion in Vietnam
The increasing income of the middle class in Vietnam has also played a significant role in driving the growth of the fintech industry. With rising consumption and the robust development of e-commerce, the number of e-wallet users in Vietnam is estimated to reach 10 million people in the last year. This trend is set to continue with the number of e-commerce users expected to reach 42 million by 2021.
Favorable Environment for Fintech Development in Vietnam
The regulatory framework of the country has also improved, contributing to the growth of fintech. With a favorable environment for fintech development, the industry is poised to continue its upward trajectory.
In conclusion, the fintech market in Vietnam is set to reach a value of 7.8 billion USD by 2020, with the digital payment segment leading the way. The government’s push to expand access to banking services, rising income of the middle class, and the development of e-commerce, are all contributing factors to this growth. With a favorable regulatory framework, the fintech industry in Vietnam is set to continue to thrive in the years to come.