Small- and medium-sized enterprises (SMEs) represent a critical foundation of Vietnam’s economy. As of 2019, they account for 98% of registered enterprises, 50% of employment, and 40% of GDP. Despite their importance, SMEs face persistent challenges in accessing finance. The unmet demand for finance among SMEs is collectively estimated at USD 21.5 billion. Enhancing Vietnam’s fintech industry and the banking sector’s use of digitalization will help to boost SMEs’ access to finance.

The Vietnam Fintech Program aims to enhance SMEs' access to finance by improving the regulatory environment for innovative fintech solutions, developing a digital finance ecosystem, and supporting the digital transformation of Vietnam's financial sector. New digital banking services and fintech applications will help to reduce transaction costs and improve credit history of borrowers, hence making it more attractive for commercial banks to serve the SME segment with much needed capital.

Outcome 1: The State Bank of Vietnam is enabled to improve the regulatory framework for fintech in Vietnam

Outcome 2: Vietnam’s fintech ecosystem is strengthened and market actors collaborate

Outcome 3: Small- and medium-sized enterprises access new digital financial services in the market

Expected results:  

Regulatory development:

Output 1.1: The State Bank of Vietnam has received and absorbed advisory support to improve fintech regulations, and fintech risk management practices

Output 1.2: The State Bank of Vietnam is trained on how to develop and implement fintech regulations and fintech risk management practices

Market development:

Output 2.1: Advisory to market actors for digital finance is provided

Output 2.2: Market actors interact through relevant platforms to further develop and deepen the sector

Output 2.3: Market actors are trained via customized fintech training course

Firm-level support:

Output 3.1: Financial institutions are capacitated to improve their offer of digital finance solutions

Results from previous phases:  

n/a