Vietnam Behind Singapore In Terms Of Fintech Investments In Southeast Asia, But Is Fast Catching Up
According to the Fintech in ASEAN report released by the United Overseas Bank (UOB), venture capital funding pouring into Vietnamese fintech
companies accounted for 36 per cent of the total fintech investment in Southeast Asia.
News was told by a spokesman from UOB that Vietnam had seen a soar in investment this year compared to 0.4 per cent last year. Singapore took the leading position with 51 per cent, down from 53 per cent last year.
Southeast Asia startup giant, Indonesia stepped down one place to third with 12 per cent, compared to 37 per cent last year.
Malaysia, Philippines and Thailand accounted for less than 2 per cent of Southeast Asia's total fintech investment, down sharply from about 10 per cent last year.
According to sources, Thailand Fintech
Industry is basically hampered by various regulatory bodies and primitive rules and regulations dating back eons.
For Vietnam, the leading field attracting venture capital in fintech companies was payment.
The fintech startup, VNPay, a Vietnamese e-payment solutions provider, took the lead in the report with total capital revealed to be US$300 million this year. Singaporean insurance company Singapore Life ranked second with deals worth $110.3 million, while Vietnamese MOMO Pay e-wallet ranked third with $100 million.
From attracting just $35 million in 2014, the total amount of venture capital invested in the fintech sector in Southeast Asia has increased sharply over the past five years to $679 million last year.
For 2019, the total figure has reached $1.14 billion from the beginning of this year.
With a regional cumulativ annual growth rate of up to double digits, digital payment is expected to become the payment method of choice from nearly 50 per cent of transactions from now to 2025, and will exceed $1 trillion. (the only country doing badly in terms of growth rate is Thailand).
Cumulatively, fintech companies are targeting about 300 million adults in Southeast Asia who do not have bank accounts or access to associated investment, credit and insurance services.
The total number of financial transactions made on mobile phones in Việt Nam had nearly doubled as of March 31 this year compared to last year, according to the State Bank of Việt Nam.
The mobile payment market in Vietnamis expected to reach $70.9 billion by 2025, up from $16 billion in 2016.