Fintech Overview
Along with the development of Industry 4.0, more and more consumers are using Fintech products and services. So what is Fintech?

Fintech stands for Financial Technology (financial technology), which is used by all companies that use the Internet, mobile phones, cloud computing technology and open source software for the purpose of improve the efficiency of banking and investment activities.

Fintech companies are divided into 2 groups. The first group are consumer-facing companies that provide digital tools to improve the way individuals borrow, manage money, and fund startups. The other group is the "back-office" companies that support technology for financial institutions.

Fintech is currently providing services in many different fields such as banking technology, payment, financial management, digital currencies... with diverse products such as: E-wallets ; Blockchain-based distributed ledger technology; Online commerce; B2C and mPOS.

Fintech Vietnam is facing a period of rapid development
Vietnam Fintech market is no exception, even facing a period of rapid development and on the rise.

According to Nikkei, Vietnam belongs to the group of the most competitive Fintech market in Asia, especially Fintech of domestic firms.

Some "famous" financial technology organizations and units in the Fintech market in Vietnam can be mentioned such as: VNPay, Zalo Pay, Fiin Credit, Momo, etc.

In addition, a survey by Meta and Bain & Company indicated that Vietnam is among the top markets in terms of adoption rate of future technologies such as financial technology (Fintech), next to Indonesia and Philippines.

58% of digital consumers in Vietnam have used Fintech solutions (online banking, e-wallets, money transfer apps...) in the past year.

Fintech is having fast and strong development steps, and shows increasing competitive pressure. If in 2017 there were only about 74 Fintech companies competing in the market, by the end of 2019 the number of Fintech companies had increased to nearly 140 companies. However, the number of Fintech companies in Vietnam has not yet caught up with other ASEAN countries when by the end of 2019, Singapore had 1,157 Fintech companies; Indonesia 511 companies; Malaysia 376 companies, Thailand 216 companies… (Fintech Singapore, 2020).

The number of startups in the Fintech sector in Vietnam is always growing every year, from 39 companies (in 2015) to 44 companies (in 2017) and 124 companies (in 2019) (Vietnam Fintech Report 2020) . In the period 2017 - 2020, the number of startups in the Fintech sector in Vietnam increased by more than 179%. In which, payment services are still the largest segment, accounting for 31% of Fintech startups; followed by P2P lending (17%), blockchain (13%), POS (7.5%), asset management (7.5%).

While Vietnam's payments startups continue to grow and attract investor interest, the peer-to-peer lending (P2P lending) and crypto/blockchain space are the two segments with the strongest growth. These two services saw the number of startups increase from less than 5 in 2017 to more than 15 startups in 2020. Vietnam now has more than 39 licensed non-banking service providers, with 5 The largest e-wallets are MoMo, Payoo, Moca, Zalo Pay and ViettelPay.

Government support has also made an important contribution to promoting the Fintech market
To get these results, the Government's policies and supports have also made an important contribution to promoting the vibrant Fintech market.

In 2016, the Government established the National Agency for Technology Business and Trade Development (NATEC) to provide training, mentoring, business incubation and financial support to technology startups. new.

In addition, the Government also has many tax incentives for information technology enterprises. Accordingly, enterprises implementing new investment projects in the field of information technology are entitled to a preferential corporate income tax rate of 10% (instead of 20% like other enterprises) for 15 years from the first year of taxable income; tax exemption for 4 years, 50% reduction of payable tax for 9 years from the first year of having taxable income; import tax exemption for goods imported to create fixed assets and serve the production of information technology products and services of enterprises...

In addition, each centralized information technology park, enterprises can enjoy other incentives and supports according to local regulations such as support for advertising and trade promotion of information technology products...

Barriers and challenges for Vietnam Fintech market
Although Vietnam's Fintech market has experienced strong growth in recent years, there are still many barriers and challenges facing this market.

Legal mechanism

Currently, in Vietnam, there are no cones