Sat. AM KTFA Vietnam News Articles 11-13-21

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KTFA

Vietnam News

Samson » November 13th, 2021

Vietnamese digital economy to grow 31 per cent this year

12th November, 2021

The Vietnamese digital economy will see a growth rate of 31 per cent this year over the same period last year, reaching $21 billion.

This is stated in the e-Conomy SEA 2021 Report published by Temasek, Google and management consulting firm Bain & Company this week.

Accordingly, the Vietnamese internet economy could reach US$220 billion in Gross Merchandise Volume (GMV) by 2030, ranking second after Indonesia. This is welcoming in the context of the shrinking online travel market. If this growth is maintained, Việt Nam’s GMV is expected to reach $57 billion by 2025.

The report also noted that since COVID-19 reappeared in the first half of this year, the country has added 8 million digital consumers, of which more than half come from non-metro areas.

Notably, 99 per cent of these new consumers expressed their intention to continue using online services post-pandemic, showing a very high level of adoption of digital services and products of users in our country.

Thirty per cent of digital merchants believe that they would not have survived the pandemic if not for digital platforms.

Digital financial services are also becoming critical enablers, with 99 per cent of digital merchants now accepting digital payments and 72 per cent having adopted digital lending solutions. Many are also embracing digital tools to engage with their customers, with 72 per cent expecting to increase usage of digital marketing tools in the next five years.

The report also assesses that Việt Nam remains an attractive innovation hub as global capital continues to pour in.

Investments and deals soared in the first half of 2021 to a record high of $1.37 billion, surpassing full-year investments in recent years, fuelled by investment interest in digital start-ups in the fields of e-commerce, fintech, healthtech and edtech.

As for Southeast Asia, the report highlights that the region is on track to become a GMV worth US$1 trillion digital economy by 2030.

The main driver of this is more than 440 million internet users, including 350 million of the region’s digital consumers.

Since the start of the pandemic, Southeast Asia has added 60 million new digital consumers, of which 20 million joined in the first half of this year.

Driven by the COVID-19 pandemic, Southeast Asian digital consumers have spent more on online services.

As a result, Southeast Asia’s GMV is estimated to reach $174 billion by the end of the year, expected to surpass $360 billion by 2025, higher than the previous forecast at $300 billion.   LINK

Payment intermediaries have great potential in Việt Nam

12th November, 2021

The field of payment intermediaries in Việt Nam at this stage was considered to have high potential, becoming attractive to many foreign investors, General Secretary of the Việt Nam Banks Association Nguyễn Quốc Hùng told a seminar in Hà Nội on Wednesday.

E-wallet services and intermediary payment gateways are in the development stage, while people have initially accepted and used the services of e-wallets, said Hùng.

People’s needs and consumption habits have shifted from offline to online, along with the explosion of e-commerce platforms and social distancing in response to the COVID-19 pandemic.

Statistics showed that there are more than 100 operating fintech enterprises, mainly in the field of payments, followed by personal finance, and peer-to-peer lending.

The State Bank of Việt Nam has granted a licence to provide intermediary services to 43 non-banking organisations; in which 13 organisations are members of the Việt Nam Banks Association.

Currently, there are more than 80,000 QR code payment points, 78 organisations providing payment services via the internet, 49 organisations providing mobile payment services, 30 commercial banks and six organisations providing intermediary payment services.

The intermediary payment organisations have regularly checked, reviewed, revised and supplemented their business processes, trained and retrained staff to meet the increasing service needs of the people, and always accepted provisions of law and the direction of the State Bank in payment activities.

Companies are focusing on investing in infrastructure and technology for non-cash payments, especially electronic payments, with improved quality, meeting the increasing demands of society.

Data of the State Bank of Việt Nam showed that the total number of payments via internet channels soared by 262.5 per cent in the past five years, the payment value grew by 353 per cent, mobile payments rose 1,000 per cent in volume but 3,000 per cent in value.

Amid the COVID-19 pandemic, payment intermediaries have still operated smoothly, safely and effectively and have appropriate policies to reduce fees for users. However, the general secretary of the Việt Nam Banks Association Nguyễn Quốc Hùng also pointed out the inadequacies of payment intermediaries such as difficulties in implementing customer identification measures; the legal framework on payment intermediary services and fintech is still lacking and inconsistent, thus causing problems in implementation.

In addition, the number of users of e-wallets and online payment methods was increasing, but the coverage was still low and mainly concentrated in urban areas, he added. Mechanisms for co-operation and data sharing among banks, credit institutions and payment intermediaries and fintech organisations was unclear, and not really open, he said.

The participation of foreign investors helps Việt Nam’s payment intermediaries have more financial resources, opportunities to learn management skills, receive modern technology, but also creates pressure and competition for domestic intermediary payment service providers.

At the seminar, on behalf of payment intermediaries and fintech organisations, Hùng suggested that the Government soon issue a decree to replace Decree 101/2012/NĐ-CP dated September 12, 2012 on non-cash payments to create a legal corridor for banks.

Hùng also suggested that the Government soon issue a decree on personal data protection to fully and comprehensively regulate the protection of personal data to prevent and minimise the disclosure, leakage, buying and selling of personal data.

He also proposed to supplement regulations to improve the responsibilities of affiliated banks in co-ordinating with e-wallets, share information identifying customers of banks so that the e-wallet could simplify the procedures and information when opening an e-wallet.   LINK

Source: Dinar Recaps

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