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Digital Banking Vietnam Report
Digital Banking Vietnam Report
IN VIETNAM
A GUIDE TO MARKET
02 DIGITAL BANKING IN VIETNAM
CONTENTS
Banking landscape 4
Fintech landscape 10
About Austrade 19
The terms of use for the Coat of Arms are available from the It’s an
Honour website (www.itsanhonour.gov.au).
Job: 18-19-384
Published July 2020
5%
10%
43%
42%
1.
State Bank of Vietnam, 2020.
78 banks
offer internet
payment soutions
19,000 270,000
ATMs nationwide POS terminals
2.
State Bank of Vietnam, 2019.
3.
Law on the State Bank of Vietnam, 2010.
LiveBank – automated banking services from TPBank BIDV - digital banking centre
100% 200
181 2%
18% 65%
million
40% 70 80
67 26%
55 60%
10% 13%
20% 45% 40
37% 23
21% 22% 23%
5
0% 0
Vietnam Philippines Indonesia Thailand Malaysia Singapore
Start-up ecosystem map and Trusting Social. They also include consumer tech
platforms such as Grab (ride-hailing) and Zalo
(content/social media), well-known consumer brands
Vietnam had around 136 fintech start-ups as of Sep like Viettel (telco), as well as established financial
20194, up from 77 in 2017.5 Payments account for a service organisations such as NAPAS, TPBank and
large proportion of these enterprises, with the majority VPBank.
operating in the e-wallet and mobile payment space.
To date, SBV has granted licences to 30 companies to Under the latest Draft National Strategy on Fourth
provide payment intermediary services.6 Innovation in Industrial Revolution in Jul 2019, Vietnam aims to have
lending is mainly seen in peer-to-peer (P2P) lending and at least 5 technology unicorns by 2025 and 10 technology
credit scoring. unicorns by 2030. To date, Vietnam has nurtured a
single unicorn, VNG Corporation, which is a digital,
The fintech players in Vietnam’s ecosystem do not just content, entertainment and technology company.
include pure-play fintech companies such as Finhay
Source: fintechnews.sg
4. Fintech News Singapore, 2019.
5. Ernst & Young, 2018.
6. State Bank of Vietnam, 2019
A number of
internal enablers
will be important in
driving this growth.
10.0 50%
9.0
8.6 8.6
8.0 38% 40%
34%
6.0 30%
24% 4.7
20%
3.8 4.0
4.0 18% 20%
2.9
2.4 14%
2.0 1.5 1.7 10%
1.0
0.5
0.0 0%
Vietnam Philippines Indonesia Thailand Malaysia Singapore
FAVOURABLE MACROECONOMIC
AND DEMOGRAPHIC FACTORS 01 02 CONSUMER DIGITAL
READINESS
- Internet penetration rate at 66%
- Mobile subscription rate at 130%
GDP growth of 7% GDP per capita expected - Smartphone penetration rate at
in 2019 to be US$4,449 in 2025 72% of the adult population - one
of the highest rates in Southeast
Growing & large population of 96.5 Asia
million. Young population with 70%
of people aged 15-64, median age E-commerce GMV at US$0.4 billion
of 30.4 years old in 2015 & projected to be US$23
billion in 2025, a CAGR of 49% -
the highest in Southeast Asia
ENABLERS OF
DIGITAL BANKING
03
BANK NAME
POTENTIAL FOR GREATER
BANKING PENETRATION 567 8910 1112
- Bank account
Valid from Expiration date
01/18 12/30/21
penetration at 30%
- Credit card
04 ENTREPRENEURIAL
penetration at 2%
- 3.8 bank branches BUSINESS ENVIRONMENT
per 100,000 people
- 24 ATMs per Vietnam is the 3rd most
100,000 people active start-up ecosystem
in ASEAN, behind Singapore
and Indonesia
STRONG DIGITAL
INFRASTRUCTURE 05 06 STRONG GOVERNMENT SUPPORT
FOR DIGITAL TRANSFORMATION
The adoption of new technologies in banking
4G networks now and financial services are highly encouraged
cover over 95% of
households. 5G Some innitiatives include:
networks are set - SBV’s Fintech Steering Committee
to follow in 2020 - The Banking Strategy
- Directive 16/CT-TTG
There is strong demand for tools that can help banks and financial services
companies to digitise their data and gain actionable insights.
There is significant potential for services and solutions catering to the large
under-banked population and underserved SMEs.
PRODUCT INNOVATION
RISK MANAGEMENT
Banks and financial services companies also value solutions that provide
comprehensive cyber security, and enable them to automate processes and
achieve their risk management and compliance goals.
The Australian Trade and Investment Commission – Our diverse team, consisting of country experts,
Austrade – is Australia’s leading trade and investment industry specialists, and trade and investment analysts,
agency. provides clients with actionable macro and micro
insights.
We are experts in connecting Australian businesses to
the world and the world to Australian businesses. From trade and investment processes to protocols and
regulation - we help Australian businesses, big or small,
We have a proud history of helping Australian businesses navigate complex overseas markets and make it easier
pursue their global ambitions and have the power to for them to go global.
open doors, unlock opportunities and help Australian
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every step, reduce the commercial risk of exporting to
We help attract game-changing investment to Australia, overseas markets.
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bolster our world-class research and development – And, our work continues. At a time of increasing global
strengthening global supply chains, creating local jobs uncertainty, we are transforming our services, to help
and boosting the economy. ensure Australia’s growth and a global future for all.
AUSTRADE VIETNAM
If you are interested in entering the Vietnam banking,
financial services and insurance market, please contact
one of our team members in Vietnam: