Vietnam’s rise from fintech outlier to thriving startup hub was not a foregone conclusion. With 70% of the population now using the internet, the population is coming online at a similar rate to regional neighbours like the Philippines (60%) and Malaysia (81%).
- Fintech Industry
In 2019, Vietnam saw a sharp increment in subsidizing, owing to two enormous arrangements, in particular, US$300 million into VNPay, the most significant agreement for a fintech firm in ASEAN in 2019, and US$100 million into Momo Pay’s Series-C raising support round at third spot.
Vietnam positioned second in ASEAN as far as fintech financing, pulling in 36% of the locale’s fintech interest in 2019, second just to Singapore (51%), as per a joint report by PricewaterhouseCoopers (PWC), United Overseas Bank (UOB), and the Singapore Fintech Association.
To prod more fintech advancements in the coming year, the SBV has likewise proceeded with the second cycle of the FinTech Challenge Vietnam (FCV). The opposition centers around fintech arrangements that substantial utilization information and human-made consciousness innovation to encourage money related incorporation and to improve cybersecurity.
Vietnam has shown investors it is committed to backing innovation. It has strongly indicated its intention to lay the building blocks required for a thriving and prosperous fintech sector by investing in the minds of tomorrow and taking steps to create a large talent pool of young, technically-savvy, capable candidates. There is no reason why Vietnam won’t continue to expand its footprint on the region’s fintech map and emerge as a major player in the region’s fintech landscape, serving as a model for other regional players with lofty fintech aspirations.
- Swift Action in Handling Covid-19 Pandemic
With a 97 million population, the country has managed to keep its cases to just 327 (as of 29 May)
On 21 April, private ventures opened, social removing guidelines were loose, and workplaces, bistros, and eateries opened. In relative terms, we’re back to “ordinary.”
So how did Vietnam control the spread of the infection so rapidly and successfully? Our viewpoint is as per the following.
All pieces of government were occupied with the reaction procedure, not just the wellbeing organizations. Just because on record, the whole Vietnam People’s Army was called up and sent to the military enclosure to anticipate orders, where they stay on the reserve. Nearby media upheld the administration’s reaction and energized resident consistence.
The Vietnamese government has approached its public communications with a striking level of transparency. Since mid-December, the communications campaign has run daily on television, via mobile phones, and on the Zalo platform, addressing the status quo, the unknowns, and the potential sequence of next steps.
The outcomes have been to incredibly limit the outbreak. Vietnam’s response to COVID-19 has been praised by many wealthier countries.
- Economic Growth
Vietnam is figure to be one of the quickest developing economies in Southeast Asia, in spite of the effect of COVID-19.
The legislature propelled a US$10.8 billion credit support in March to battle the emergency.
After COVID-19, the economy is required to bounce back at a development pace of 6.8 percent in 2021 with proceeded with solid development.
The drivers for monetary development in Vietnam are the rising white collar class, and the rising number of household and SME.
- Major Acquisition Deals
The Vietnamese government has streamlined the merger and acquisition (M&A) process to encourage investment in new sectors of the economy. And for foreign investors that see establishing a business in Vietnam as too cumbersome, the M&A route provides a unique solution to many obstacles.
With an M&A, investors can enjoy pre existing access to consumers, locations, and distribution channels. This local knowledge can prove critical to successful operations within Vietnam’s vibrant but rapidly changing investment environment.
It’s an increasingly popular investment route. M&A deals hit US$9.9 billion in 2018, according to the Vietnam Association of Foreign Invested Enterprises.
One of the most prominent M&A deal is the country’s most popular e-payment service, MoMo, reportedly landed $100 million from U.S. private equity firm Warburg Pincus, an investment that followed previous multimillion dollar injections from Standard Chartered and Goldman Sachs.
The most recent one would be Poultry giant Leong Hup International Bhd has acquired an aquatic feedmill in Vietnam, including its plant, equipment, machinery and motor vehicles for a total consideration of RM67.03 million.
Conclusion
Just like investing in most other countries, investing in Vietnam will carry its share of risks. However, despite the challenges, the country has managed to present itself as an ideal place for foreign investors. For information on how to invest in Vietnam, feel free to contact EST Advisory Management. We’ll go through one-to-one consultation and guide you along the way. We know the way to seamless, value-creating transactions.
EST Advisory Management has extensive experience assisting enterprises on M&A related engagements. Our team has worked on thousands of M&A projects over the years in most major industries and regions of the world. This experience, coupled with our extensive network of global offices, enables EST Advisory Management to provide substantive advice to organizations involved in a merger or acquisition, divestiture, distressed situation, or other corporate restructuring.
