Nguyen Thanh Binh According to Solidiance, an APAC-focused consultancy firm, the Vietnamese fintech market was worth $4.4 billion in 2017, and is predicted to reach $7.8 billion by 2020, equalling a 77 per cent increase over three years. This predicted fast-paced development is driven by numerous factors, including regulatory efforts to increase financial inclusion and to reduce cash payments, rising income and consumption which fuel the e-commerce sector, high Internet and smartphone penetration rates, and a young and tech affine population. In line with the United Nations’ goal of promoting financial inclusion, the Vietnamese government has made significant efforts to tailor regulations to increase banking penetration to 70 per cent from 59 per cent in 2017, and to shift to a non-cash payment economy where the cash to total liquidity ratio should be less than 10 per cent by 2020 (Decision No.986/QD-TTg). The Vietnamese government recognises fintech as one of the key factors … [Read more...] about Vietnam taken by fintech revolution
Goldman sachs the bank that runs the world
E-wallets try to gain a proper foothold in Vietnam by running extensive promotion programmes In 2018, the e-wallet market failed to produce a long-awaited breakthrough, with no single contender emerging to dominance, despite the parade of promotions. According to the statistics of the State Bank of Vietnam (SBV), as of November 2018, 26 non-bank institutions have been licensed to provide intermediary payment services, 20 of which offered e-wallets, including well-known names like MoMo, Bankplus, Vi Viet, VTC Pay, WePay, Vimo, Ngan Luong, and Payoo. Heavy investments A discount of 50 per cent on the first payment, a VND20,000 ($0.87) combo for a couple of cinema tickets, popcorn, and drinks, as well as a gift of VND300,000 ($13) on the e-wallets of new customers are all attractive offers that e-wallet providers came up with to bring customers over to their platforms. Besides, e-wallets have a “promotion” button on their website menus that allow customers to browse and … [Read more...] about Bleak future for e wallets
Bamboo Airways and Petrolimex’s subsidiaries sign MoU Bamboo Airways Company Limited, a member of FLC Group, signed a memorandum of understanding (MoU) for co-operation with the Petrolimex Insurance Company (PJICO) and Petrolimex Aviation Fuel Joint Stock Company. The MoU was signed last week in the central province of Thanh Hoa. Under the terms, Bamboo Airways would give priority to use non-life insurance products of PJICO such as airplane insurance, airline liability insurance, machinery insurance and others as well as aviation fuel of Petrolimex. Meanwhile, the two subsidiaries of Petrolimex would give priorities to use airlines services of Bamboo. Speaking at the signing ceremony, Pham Van Thanh, Petrolimex’s chairman, said Petrolimex has been a member of the Joint Inspection Group (JIG), the world-leading organisation for the development of aviation fuel supply standards. "We committed to provide preferential to Bamboo Airways in its earlier … [Read more...] about BUSINESS NEWS IN BRIEF 23/11
Asian markets staged a much-needed rally Wednesday (Oct 17) as investors tracked Wall Street's best performance in more than six months thanks to a healthy round of earnings reports. Asian traders are taking their lead from a strong performance on Wall Street that came after healthy earnings reports. (Photo: AFP/Daniel Roland) Bargain-buyers took advantage of the strong readings from some of the world's top firms to step back into the mix, with a dip in US Treasury yields and a US announcement of trade talks with Japan, the EU and Britain helping sentiment. The news helped distract from long-running worries about the trade war between China and the United States that shows no sign of abating. Investors are now awaiting the release later in the day of minutes from the Federal Reserve's most recent policy meeting, hoping for some insight into its plans for interest rates in light of fresh strong data on the US economy. All three main indexes in New York piled on more than 2 per … [Read more...] about Asian markets stage rally after strong Wall Street lead
Probability of a bubble Vo Huynh Tuan Kiet Since its quick recovery in 2014, the Vietnamese real estate market has witnessed an unparalleled supply of new projects being constantly launched and with good net absorption. Along with the market’s traditional segments, new products have been introduced, such as second-home villas, condotels, and officetels. Since 2015, the Vietnamese government loosened its requirements for foreigners to buy and own properties in Vietnam, which helped attract more foreign investors to the market (Figures 1 and 2). Nonetheless, many experts and investors have cast doubts upon this rapid recovery, predicting underlying risks. These risks include an oversupply of high-end projects, the return of speculators, and falling market demand. The biggest concern would be another property bubble akin to the one that shook the market in 2007 and froze the property market until 2013. The market is still paying the cost of this previous bubble. As the … [Read more...] about Signs of another property bubble?