Fintech - One of the solid levers for Vietnam's digital economy

Vietnam is entering a new era through a comprehensive transformation from institutions, technology to national competitiveness. From the strategic vision of becoming a developed, high-income country by 2045, the Vietnamese economy needs to integrate and participate more deeply in global value chains.

The prerequisite for successfully implementing this strategy is the macroeconomic shift from a growth model based on resources and cheap labor to a development model based on technology, artificial intelligence, and creative industries.

Fintech - One of the solid levers for Vietnam's digital economy - 1

Catalyst for inclusive digital economy

Since the beginning of 2020, Decision No. 149/QD-TTg on the National Financial Inclusion Strategy to 2025, with a vision to 2030, has been approved by the Prime Minister , paving the way for digital finance to develop. The Decision also sets a target that by the end of 2025, at least 80% of adults will have transaction accounts at banks or organizations licensed to provide payment services so that everyone has the opportunity to participate and benefit from the financial digitalization process.

To date, digital transformation is opening up many opportunities for socio-economic development, helping to improve labor productivity, increase revenue, and enhance the quality of public services. According to the e-Conomy SEA 2024 report by Google, Temasek and Bain & Company, in 2024, Vietnam's digital economy will continue to achieve strong growth in the fields of e-commerce, digital finance, and cashless payments.

The total transaction value (GMV) of Vietnam's digital economy is expected to reach 36 billion USD, up 16% compared to the previous year. Vietnam is aiming to expand its digital economy, reaching about 30% of GDP value by 2030, joining the group of 30 leading countries in information technology, competitiveness index, and cyber safety and security.

On that journey, Fintech has increasingly affirmed its role as an important catalyst in the flow of economic development. Fintech not only facilitates the rapid flow of capital, helping people access capital through easy applications, but also simplifies the buying and selling process, thereby forming a close link between production - transaction - payment. New business models such as digital banking, digital insurance, micro-investment, shared finance, etc. have also emerged and quickly developed deeply into life.

Borderless Financial Connectivity Strategy

Vietnam is entering an era of growth, financial inclusion is not only a financial goal, but also a foundation for sustainable socio-economic development: Finance for everyone, so that no one is left behind. In that context, the Viettel Money digital financial ecosystem is considered one of the typical representatives of the digital financial trend developed by Vietnamese enterprises.

With Viettel Money, the digital financial gap is narrowed when people have the opportunity to conveniently access payment services, money transfers, microfinance... just through their smartphones. Not stopping there, through the strategy of network cooperation with banks and financial institutions, Viettel Money has successfully risen to the pioneering position in the market in terms of payment transaction scale of many essential industries such as electricity, water, public administration and tuition...

After 6 years of development, Viettel Money has served nearly 30 million customers nationwide, spanning from urban, suburban to rural and remote areas.

Viettel Money digital financial ecosystem is fully developed by Viettel Digital Services Corporation (Viettel Digital), a subsidiary of Viettel Military Industry - Telecommunications Group, currently the most valuable brand in Vietnam (according to Brand Finance).

The strong development of Viettel Money in particular and the Fintech sector in general has shown the great potential of the digital economy in Vietnam. As a bridge, Fintech not only accompanies customers on the journey of financial digitization but also contributes to the process of building a modern, transparent, comprehensive and human-oriented financial ecosystem.

Vietnam is gradually becoming the fastest growing Fintech hub in Southeast Asia as experts predict that by 2027, the market value will increase to 23.2 billion USD with a compound annual growth rate (CAGR) of 18.0%.

It can be seen that the combination of macro policies and the constant creative efforts of Fintech enterprises such as Viettel Digital is the key factor for Vietnam to realize its goal of becoming a developed country. This is not only a story about technology but also a comprehensive transformation from development thinking to creating the future.

Ha An

Source: https://vtcnews.vn/fintech-mot-trong-nhung-don-bay-vung-chac-cho-nen-kinh-te-so-viet-nam-ar948265.html