Vietnam - Singapore digital transformation ecosystem
Hanoi (VNA) - Possessing great growth potential with a strong digital transformation process, Vietnam is considered a key market for many technology companies in Singapore.
According to Alexander Gold, chairman of Bankograph Pte Limited - a Singapore-based fintech company, Vietnam is one of the strategic markets for developing cross-border financial supply chains connecting Southeast Asia to the rest of the world. Despite many opportunities to enter markets such as the Philippines, India and Malaysia, Bankograph still chooses Vietnam as the first market to develop its activities.
“After evaluating and comparing Bankograph's growth models in different developing markets, we find that Vietnam stands out as a destination of choice for foreign investors, not only in the financial sector, but also in many other areas. We are committed to helping Vietnam become a + launcher + for Bankograph subsidiaries in Asia-Pacific, ”said Alexander Gold.
Another fintech company in Singapore, Finaxar, has also partnered with Indovina Bank Vietnam to provide a tailored financial support solution for SMEs in Southeast Asia. According to Finaxar, in Vietnam, 60% of the total number of SMEs - which account for more than 96% of the total number of businesses - have difficulty accessing sources of working capital. The financial solution provided by Finaxar and its partners is expected to be convenient and responsive through online and automatic operation, with a credit limit of 500 million dong.
Analyzing the potential of the Vietnamese market, Le Ngoc Hai, CEO of Doctor Anywhere Vietnam - an e-health app from Singapore - assessed that the golden demographic structure, the growth of the macroeconomics, the speed of digital transformation and many Technological talents are attractive factors for regional technology companies. Therefore, it would not be too surprising if more and more Singaporean technology companies wanted to enter the Vietnamese market
“Vietnam is the first foreign market in which Doctor Anywhere has decided to expand its investment in 2019. Although telehealth is a new area, we are seeing demand increasing in Vietnam. In the future, Vietnam will become a key market for Doctor Anywhere in Southeast Asia, ”said Le Ngoc Hai.
In March 2020 Doctor Anywhere raised $ 27 million in a Series B fundraiser. In Vietnam, Doctor Anywhere will use this new capital to invest in people, as well as a portfolio of services, targeting spending optimal health care at affordable prices for Vietnamese.
Opportunities for cooperation
The wave of Singaporean investment in Vietnam has been encouraged and supported by the government. In 2019 Enterprise Singapore, a government agency under the Singapore Ministry of Trade and Industry whose role is to support the development of Singaporean businesses, officially announced the expansion of the Global Innovation Alliance (GIA) in Vietnam. .
The alliance aims to connect Singapore's tech start-ups to the innovation market in Vietnam, as well as to promote cooperation between the two countries, creating a wide range of student-level exchanges, including opportunities internships for Singapore students in start-ups and companies in Vietnam.
Speaking at the GIA launch ceremony, Png Cheong Boon, CEO of Enterprise Singapore, pointed out that Enterprise Singapore encourages Vietnamese start-ups to leverage Singapore's innovative startup ecosystem to connect with multinational corporations and major Asian companies headquartered here to expand their business.
Meanwhile, Bankograph plans to invest in processing infrastructure in Vietnam, commits to increase its capital and cooperate with Vietnamese partners for comprehensive financial development with efficient and affordable consumer credit products. .
“We believe that with Singapore's introduction of the Variable Capital Company structure as an efficient tax solution for foreign investors, more and more Singaporean fintech companies will see Vietnam as the top investment market, with premiums unique risks compared to other markets in the region, ”said Alexander Gold.
Thus, Vietnamese companies and financial institutions will benefit from their cooperation with Singaporean fintech as the city-state continues to assert its position as an international commercial and financial center. The “handshake” of companies in Singapore and Vietnam promises to create a unique cross-border ecosystem in the financial sector, in the technology sector more broadly. -CPV /VNA