VietNamNet Bridge - Though fintech remains in an early stage of development in Vietnam, foreign investment funds and technology firms have poured hundreds of millions of dollars in Vietnamese fintech firms in anticipation of an increase in non-cash payments in the country. 

Vietnamese Deputy PM Vuong Dinh Hue at the Vietnam E-Payment Forum 2017 affirmed that mobile payments are ‘inevitable’ and that the payment method will witness a boom in the time to come as it brings benefits to people, businesses and the state.

Fintech firms are believed to play a key role in developing a non-cash society. The firms can be classified into two groups. The first serves consumers by providing digital tools to improve the way individuals borrow, manage money and fund startups. The others are part of a ‘back-office’ group which gives technological support to financial institutions.  

There are over 40 fintech firms in Vietnam which provide diverse services, including payment, remittance, capital mobilization and finance management.

Analysts noted that though Vietnam’s fintech is still fledgling, it is attracting foreign investors. Many investment funds and technology firms have invested hundreds of millions of dollars in Vietnamese firms.

Most recently, UTC Investment from South Korea spent VND542 billion to acquire a 65 percent of VNPT Epay from VMG Media and individual shareholders. With the price, VNPT Epay’s valuation is VND834 billion, or $36.7 million.

Though Vietnam’s fintech is still fledgling, it is attracting foreign investors. Many investment funds and technology firms have invested hundreds of millions of dollars in Vietnamese firms.

VNPT Epay was established in April 2008 with charter capital of VND120 billion, providing intermediary payment service and scratch cards. 

There are many businesses of this kind, but VNPT Epay is among the businesses with the highest turnover and profit. CafeF estimates that the company has annual turnover of VND5 trillion.

In the prospectus to the US Securities and Exchange Commission, SEA (its old name is Garena), one of the most valuable startups in South East Asia, said the company is holding 45.18 percent of VNPAY, a Vietnamese payment solution provider.

A big business deal that caught public attention in 2016 was the one in which SCPE and Goldman Sachs poured $28 million (VND636 billion) into e-wallet MoMo.

In late 2016, Credit China FinTech Holdings Ltd, a Hong Kong-based firm, spent $12.73 million to acquire 51 percent of Amigo Technologies, which specializes in providing IT services and personal finance solutions.

A series of other deals have been reported recently. MOL Accessportal acquired a 50 percent stake of Nganluong, NTT Data a 64 percent stake of Payoo, True Money a 40 percent stake of 1Pay and Credit Saison, and Golden Gate Ventures and GMO Global Payment Fund together bought a 25 percent stake of Bao Kim. 

Each deal was worth tens of millions of dollars.

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