Abstract
In the ‘4th Industrial Revolution,’ the upsurged trend of financial services of non-banking institutions and the intersection of financial services and technology have shaped fintech companies. Such businesses have advantages in technology, deliver financial solutions with modern technologies, and provide customers with a highly accessible and streamlined path to fulfill their financial needs. Vietnam has been considered as a potentially lucrative market for fintech as it has a young and ‘tech-savvy’ population, high mobile phone and internet penetration rates, and relatively low levels of financial inclusion. Although its fintech market is still fledgling, more than 150 companies have joined with increasing transaction volumes and high growth rates. They have provided customers with financial and banking services such as digital payment, crowdfunding, peer-to-peer lending, remittance, blockchain, personal finance management, and information comparison with modern technologies, lower costs, and more straightforward procedures. Also, the country has been making an effort to spur the development of fintech companies by setting up a fintech steering committee, preparing the national financial inclusion strategy, and cautiously seeking the best approach to regulate fintech. This chapter examines the use of fintech to facilitate socio-economic development in Vietnam and considers the appropriate regulatory framework to achieve such a goal.
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Notes
- 1.
Aner et al. (2016), p. 3.
- 2.
- 3.
Tam and Hanh (2018), p. 11.
- 4.
See UNEP (2016), p. 22.
- 5.
- 6.
See Moshirian et al. (2019), p. 19.
- 7.
Zetzsche et al. (2017), p. 1.
- 8.
Tam and Hanh (2018), p. 14.
- 9.
- 10.
Ernst and Young Vietnam (2018), p. 5.
- 11.
Aner et al. (2016), p. 19.
- 12.
See Tam and Hanh (2018), p. 15.
- 13.
British Business Group Vietnam (2019), p. 2.
- 14.
The State Bank of Vietnam (2019a).
- 15.
Vietnam Investment Review (2019).
- 16.
See Thao (2018).
- 17.
See The Asian Banker (2018).
- 18.
See Fintechnews Vietnam (2019).
- 19.
See VeriMe (2018).
- 20.
See Nguyen (2019).
- 21.
See Vietnamnet (2019).
- 22.
Rake (2018).
- 23.
Das (2018).
- 24.
See Phan Law Vietnam (2018).
- 25.
See Bui (2017), p. 27.
- 26.
See Thuy (2017), p. 42.
- 27.
See Comicoca (2019).
- 28.
See Phan Law Vietnam (2018).
- 29.
See Thuy (2017), p. 26.
- 30.
See Thuy (2017), p. 42.
- 31.
See Bui (2017), p. 29.
- 32.
- 33.
Duyen and Mai (2019).
- 34.
Tan (2019).
- 35.
See Tima (2017).
- 36.
See Viet Nam News (2019).
- 37.
Fintechnews Singapore (2015).
- 38.
Fintechnews Singapore (2019).
- 39.
See Danso.org (2019).
- 40.
See Worldometers (2019).
- 41.
See Countryeconomy.com (2018).
- 42.
CSIRO’s Data61 (2018).
- 43.
Ernst and Young Vietnam (2018), p. 6.
- 44.
Fintechnews Singapore (2018).
- 45.
See Tam and Hanh (2018), p. 16.
- 46.
Viet Nam News (2018).
- 47.
Viet Nam News (2018).
- 48.
vtv News (2018).
- 49.
Ha (2018).
- 50.
BDA Partners (2017).
- 51.
Chi (2017).
- 52.
Chi (2017).
- 53.
Nikkei Asian Review (2017).
- 54.
IntellAsia Finance Vietnam (2017), p. 6.
- 55.
IntellAsia Finance Vietnam (2017), p. 6.
- 56.
Vietnam Investment Review (2018).
- 57.
Viet Nam News (2016).
- 58.
Fintechnews Singapore (2018).
- 59.
See Banking.org (2018).
- 60.
Vietnam Investment Review (2018).
- 61.
Fintechnews Singapore (2018a).
- 62.
See Moshirian et al. (2019), p. 13.
- 63.
Tung (2018), p. 16.
- 64.
See Moshirian et al. (2019), p. 14.
- 65.
Thanh (2017).
- 66.
Tung (2018), p. 17.
- 67.
Moshirian et al. (2019), p. 15.
- 68.
The Economist (2017).
- 69.
See Xay Dung Dang (2011).
- 70.
Vietnam Investment Review (2018).
- 71.
Financial inclusion involves delivering financial services at affordable cost to all parts of society. It enables people to manage their financial obligations efficiently, reduce poverty and supports wider economic growth. First, it reduces individual’s unlnerability. For instance, facilitating saving allows people to weather shocks and invest in their education, health and micro-business. Second, it increase the efficiency of daily life: bills can be paid electronically without time off work. Third, it allows the socialization and diversification of people’s financial risks through the financial system. Fourth, it supports economic growth through increasing financial resources to support real economic activity. FATF (2013), p. 12; Buckley, Arner, Zetzsche and Veidt (2019), p. 8.
- 72.
See Buckley, Arner, Zetzsche and Veidt (2019), p. 13.
- 73.
The percentage of people with bank accounts in Vietnam is just around 30%. See Iwasaki (2018), Pacific Business and Industries, Vol. XVIII, No. 68, p. 6.
- 74.
Financial literacy means the ability to manage one’s finance independently, without a financial advisor. See Klapper et al. (2015), p. 16.
- 75.
Buckley, Arner, Zetzsche and Veidt (2019), p. 10.
- 76.
Arner et al. (2016), p. 32.
- 77.
- 78.
See Law on the State Bank of Vietnam (2010), Article 4 and Article 6.
- 79.
See Circular 39/2014/TT-NHNN (2014), Article 3.
- 80.
See Decree 80/2016/ND-CP (2016), Article 4.
- 81.
See Decree 101/2012/ND-CP and Decree 80/2016/ND-CP.
- 82.
See Thang (2018).
- 83.
See Linh (2018).
- 84.
An (2018).
- 85.
Tan (2019).
- 86.
See Bao Thanh Nien (2019).
- 87.
See Buteno and Larouche (2015), p. 72.
- 88.
See Fenwick et al. (2017), p. 571.
- 89.
See Alemanno et al. (2013), p. 287.
- 90.
- 91.
See Black (2008).
- 92.
See Fenwick et al. (2017), p. 561.
- 93.
See Zetzsche et al. (2017), p. 1.
- 94.
See Zetzsche et al. (2017), pp. 11–12.
- 95.
See Zetzsche et al. (2017), p. 26.
- 96.
See Zetzsche et al. (2017), p. 13.
- 97.
See Clements (2018), p. 40.
- 98.
See Zetzsche et al. (2017), p. 13.
- 99.
See Zetzsche et al. (2017), p. 14.
- 100.
Bui (2019).
- 101.
The State Bank of Vietnam (2019b).
- 102.
See Zetzsche et al. (2017), p. 56.
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Nguyen, H.Y. (2020). Fintech in Vietnam and Its Regulatory Approach. In: Fenwick, M., Van Uytsel, S., Ying, B. (eds) Regulating FinTech in Asia. Perspectives in Law, Business and Innovation. Springer, Singapore. https://doi.org/10.1007/978-981-15-5819-1_7
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