Discussion on National Comprehensive Financial Strategy and the Role of Fintech in Vietnam
The National Comprehensive Financial Strategy until 2025, with a Vision to 2030 (NCFS) was recently discussed by experts in the financial sector in Vietnam. The strategy aims to improve access to financial products and services for all citizens and businesses, especially focusing on vulnerable groups such as poor people, low-income earners, and small enterprises.
One of the key issues highlighted during the discussion was the difficulty faced by micro and small enterprises in accessing capital. Many of these businesses rely on informal credit due to challenges such as lack of credit history, collateral requirements, and business plans. This has led to a low loan success rate for these enterprises.
Experts suggested that collaboration between credit institutions and Fintech companies could help address this issue. Fintech companies have the technological expertise and data sources to facilitate efficient credit evaluation and decision-making, while credit institutions excel in operational procedures. By working together, they can provide dedicated capital supply channels for vulnerable groups.
The discussion also emphasized the importance of financial education for vulnerable groups, as many lack financial knowledge and cash flow planning. Fintech businesses like Momo, Zalopay, and Finviet have played a significant role in providing mobile payment services and financial products to people in rural and remote areas.
However, there are still challenges facing the Fintech sector in Vietnam, such as the need for a legal framework to protect consumers and support the development of a variety of financial products and services. The sector is currently operating under a “pilot license” model with limitations that need to be addressed for further growth.
Overall, the experts agreed that Fintech has the potential to revolutionize the financial industry in Vietnam by providing easy access to formal credit for all segments of the population. With the right support and regulatory framework, Fintech companies can help expand “white credit” coverage and contribute to the fight against “black credit” in the country.