The amount of venture capital funding for financial technology (fintech) startups in Vietnam surged from 0.4 percent in 2018 to a staggering 36 percent in the first nine months of the year.
Local fintech startups are quickly catching up to Singapore in attracting Southeast Asian venture capital financing, VietnamPlus cited Nikkei Asia Review on November 27 as saying.
The rate recorded in Singapore in the nine-month period is 51%, slightly down from the year-ago figure of 53%.
Venture capital funding in the region’s fintech sector soared sharply to $679 million last year, from a mere $35 million in 2014. In the year-to-date, the funding inflows into Southeast Asian fintech firms totalled over $1 billion.
Notably, Vietnamese e-payment service provider VNPay topped the regional market in attracting venture capital funding, reportedly receiving $300 million throughout this year.
The runner-up was insurer Singapore Life, with funding worth some $110 million. Vietnamese e-wallet operator MoMo Pay was third, receiving financing of $100 million.
Wong Wanyi, Fintech leader at PwC Singapore, said that the payment industry led the Vietnamese market in attracting funding. At present, consumer-based industries in developing countries will attract the most capital inflows, he added.
With annual double-digit growth, digital payment methods are forecast to be selected for almost 50 percent of transactions made from now until 2025, with value expected to exceed $1 trillion, as fintech companies are approaching some 300 million adult customers in Southeast Asia who have yet to open bank accounts or to access investment channels, credit and insurance services, according to a report jointly conducted by PwC Singapore, United Overseas Bank and Singapore FinTech Association.
The top 10 fintech firms attracting the most venture capital funding are headquartered in Vietnam, Singapore and Indonesia.
https://english.thesaigontimes.vn/73146/vietnam-fintech-startups-attract-record-funding.html
