Digital-first strategy to be focus among Vietnam’s banks and fintech by 2025

The 2021-2025 period will be the time for all banks, businesses and fintech companies in Vietnam to accelerate digital-first strategy, predicted by the latest innovation report. 

A delegate gives his speeches at the ceremony. Photo: Phi Nhat

The Vietnam Open Innovation Landscape 2021 Report indicates that 25% of banks in Vietnam will actively pursue modernization of digital core platforms.

Major trends in the banking industry are mentioned in the report, including digital bank Neobank to support their customers, rather than traditional physical branches, voice-activated technology, automated and risk restricted management technology for banking and financial services, and decentralized finance. Among these trends, customer experience is the most important priority.

The report also provided a map of startups through prominent economic fields, including consumption, retail, education, finance, healthcare, martech & salestech, logistics & supply chain, sustainable development, agriculture, travel & tourism, blockchain & crypto. In each area, it outlines challenges, key technology breakthrough trends and techn companies who are providing outstanding solutions in Vietnam.

Speaking at the event, Vu Binh, Consul General of Vietnam in Fukuoka, Japan said: “The report has demonstrated initial efforts in building an innovation ecosystem in Vietnam. It also shows the strong rise of businesses and the spirit of innovation is not only found in small enterprises but also in large ones.”

He underlined the international context is increasingly favorable for the development of small and medium-sized enterprises, facilitating the promotion of open innovation.

The report found, in the field of Martech & Saletech, Artificial Intelligence (AI) and machine learning, a variety of technology solutions are used help optimize and automate marketing in many ways.

In the agricultural and food technology (Agtech & Foodtech) industry, the report identified five key trends such as smart agriculture, climate change adaptation, alternative-protein manufacturing technology, distribution through e-commerce channels, as well as application of information technology to ensure food safety and transparency.

Regarding the healthtech industry, the report noted healthcare is believed to be the fastest digital transformation industry in Vietnam compared to other industries. It pointed out some prominent trends in healthtech such as: personal health record, telemedicine, digitalize . healthcare system, application of AI and Robotic, and remote patient monitoring.

Le Hoang Uyen Vy, Co-founder & General Partner of Do Ventures said Vietnam’s startup ecosystem is entering a turning point to make a mark in the region and the world. Vietnamese startups have begun to target regional and global markets instead of serving only the domestic market. 

“They are also able to launch products and services with high technology content,” she added. “They became mature, enough to become investors for the next generation of founders,” Vy said.

Although Covid-19 had a strong impact on the economy, the number of transactions increased to the highest level in the past five years, reaching 108 investment deals in the past two years.

Delegates attending the ceremony said the Vietnam Open Innovation Landscape 2021 Report brings important value to all stakeholders in the ecosystem, especially the group of domestic and foreign investors. It is also a bridge to help attract foreign investors' interest in Vietnamese startups, thereby increasing capital flows into the domestic technology investment market.