Fintech in Vietnam: Broadening your market strategy

30 March 2022: Fintech in Vietnam is a comprehensive online Capability Development program to help Australian organisations in navigating Fintech opportunities in Vietnam and to equip senior business leaders with improved abilities to execute effective strategies for engagement with Vietnam’s Fintech sector.

This three-part interactive program delivered across three weeks supports the Australia Vietnam Enhanced Economic Engagement Strategy. The Program assisted businesses in broadening their market strategy, enhancing their business capabilities and navigating opportunities in Vietnam.

The Fintech in Vietnam program was delivered by Asialink Business and supported in partnership with the Department of Industry, Science, Energy and Resources (DISER) and Austrade.

Module 1: Deep dive into Fintech segments in Vietnam

The first of the three-part series took a deep dive into Payments, Insurtech and Blockchain segments, where Australian fintech companies, start-up businesses within the sector, investors and senior business leaders were able to engage directly with fintech experts Lien Truong Director​, EY Consulting​, Financial Services Advisory​, Nam Trần, Former Co-Founder & CEO​, Moca, Do Van Long, Founder & CEO​ Vietnam Blockchain Corporation and Hai Tran Hong, Investment Director, Triple P Capital​.

Shannon Leahy, Trade Commissioner, Austrade Vietnam, shared key insights into Australia Vietnam Trade and investment relationship and future developments.

Key takeaways included:

  • Exponential growth in digital consumers in Vietnam ≈ 71% of the population demonstrating digital readiness.
  • Mobile transactions in Vietnam are expected to increase by 300% between 2021 and 2025, led by strong growth in mobile payments.
  • Trends include increased partnerships with financial institutions and super apps now integrate many bank-like features.
  • Companies need to build solutions (Blockchain) for daily life and not just for cryptocurrency or finance solutions.
  • Execution is more important than new innovative tech (Insurtech).
  • Vietnam payments market is heavily cash-based, fragmented, crowded with B2C players and tightly regulated.

Module 2: Doing business in Vietnam

The second session of the three-part series focused on Doing Business in Vietnam and engaging with business partners and stakeholders.

Sharing their expertise in the second session was Chau Ta, Executive Director, Legal Transactions and Nhung Tran (Celine), Business Development Manager, Austrade Vietnam.

Key takeaways included:

  • The business culture in Ha Noi is different from the business culture in Ho Chi Minh City.
  • Even though Australia is a trusted and valued brand in Vietnam amongst its young and energetic population (the median age in Vietnam is 32.5 years) this is not the case in the digital tech space.
  • Australia's Fintech brand recognition is quite low. Effort will need to be made by Australian companies looking to engage with Vietnam.
  • It is common for personal questions to be asked in the first meeting by your Vietnamese stakeholders - so be prepared to share.
  • Vietnamese stakeholders will be direct but for that to happen they need to trust you which can take time.

Module 3: Planning for success

The final session of the three-part series focused on a panel discussion with Thanh Van Dang, CEO at Savvycom, Asia Society – Victoria Distinguished Fellow, Huy Nguyen, Group CEO - Pencil Group, Richard Everett, Advisory Board Member, PI.Exhange, and provided a practical session on steps for planning your entry and the art of closing the deal in Vietnam (Strategy in Action) with Hoang Hai Do, Consultant & Investor.

Key takeaways included:

  • Localise your product for the Vietnam market.
  • Find a local partner and do your due diligence before signing any agreement, including understanding their customer base and their experience and skills.
  • Be targeted in your approach and qualify the opportunity.
  • Consider how your product can integrate with the concept of We (Collective), Now (Faster) and More (Multitask).
  • Test your idea and then test again.
  • If you are recruiting talent in Vietnam, move fast and fast means within a week from interview to offer.
  • Share the broader vision with your partners in Vietnam, don’t just send the core piece of work across.
  • Ensure you are also engaging with mid-level management.
  • Negotiations on price will take place so don’t go in with the lowest price offer and not leaving yourself place to move.

To find out more about Vietnam’s fintech boom and what’s in it for Australian business click here.

To find out more about Doing Business in Vietnam, download a copy of our Country Starter Pack here.