March 29, 2019
Over the next few weeks, MEDICI brings you a series of articles exploring FinTech in the ASEAN region. The articles, each focused on a different ASEAN country, provide comprehensive insights into the FinTech investment landscape in the region.
ASEAN in Figures
ASEAN (the Association of Southeast Asian Nations) is the third-largest Asian region. It is home to more than 630 million people and one-fourth of the population lives in urban areas. ASEAN has an annual growth rate of 4.7% and USD 119.97 billion in FDIs; it is also one of the fastest-growing regions as well as the seventh-largest economy globally.
Its population is young and educated with a literacy rate of over 80%, phone-savvy with more than 0.5 phones per person, and enjoys a low-to-mid unemployment rate of 0.5%–6.9%. ASEAN members also have an average to a high life expectancy of 69–82.7 years, and a gender parity of 49.9% males to 50.1% females.
Earlier in this series, we visited Thailand’s and Singapore’s FinTech ecosystems, looking at it from an investment perspective. Before the week ends, here’s an in-depth review of yet another ASEAN country’s FinTech investment landscape – Vietnam.
Vietnam is home to more than 90 million people, among which 33% are living in urban areas. About 8.4% of Vietnamese live below the national poverty line and the unemployment rate is one of the lowest in the region at 2.3%.
The country is growing at 6.7% per year and has a high phone/internet penetration, and high adult literacy, which is close to 95%.
In terms of foreign ownership, there is an aggregate cap at 30% and single shareholder cap at 20%. Vietnam is ranked at number 82 in ease of doing business. The corporate tax rate is 20% – however, tax incentives are available for some technology-related entities.
The Asian FinTech landscape is a fascinating one. However, unlike other emerging markets in Asia that experience weak domestic demand and lower exports, Vietnam’s economy is experiencing a GDP growth of 6%+ since 2009 and is expected to continue growing at a solid pace. The Prime Minister targets ...