New financial leverage for Vietnam's private sector

With the private sector identified as a key driver of the economy under Resolution 68-NQ/TW, Fintech platforms are playing — and will continue to play — a crucial role in supporting the private sector, especially small and medium-sized enterprises (SMEs) in the digital economy.

Unlocking Fintech’s Potential

One of the biggest challenges currently facing the private sector is access to credit. According to the Vietnam Association of Small and Medium Enterprises, only about 30–35% of SMEs are able to secure bank loans based on existing collateral. A few banks provide loans against future-formed assets, but this remains limited. Meanwhile, Fintech — particularly peer-to-peer (P2P) lending models — is helping address this issue. Platforms like Interloan are prime examples.

A notable feature of these platforms is their use of non-traditional data — such as cash flow, consumer behavior, and transaction history — for fast and automated credit assessments. This reduces reliance on collateral, which many small businesses lack.

For cross-border payments, as private enterprises increasingly pursue international expansion, particularly in e-commerce, the need for fast, transparent, and low-cost international payments becomes critical.

According to the Vietnam Fintech Report 2024, the country now has over 160 Fintech companies, making it one of the top three fastest-growing Fintech ecosystems in ASEAN. About 70% of Fintech activity is concentrated in payment and credit services — two urgent needs of the private sector.

However, to fully tap into this potential, Vietnam must continue to improve its regulatory sandbox framework, allowing Fintech to grow in a risk-controlled environment. It should also promote data sharing between businesses, banks, and government agencies to improve Fintech’s service accuracy, while ensuring cybersecurity and consumer protection — especially in digital lending models.

Additionally, it’s essential to monitor potential risks in Fintech, particularly P2P lending. If poorly regulated, it could lead to debt bubbles and financial instability. This is why Resolution 68-NQ/TW emphasizes the need to “build a controlled sandbox framework for P2P lending” — to promote innovation while maintaining system safety.

Policy Reforms for Sustainable Private Sector Growth

According to Dr. Phan Anh, for the private sector to truly become a key driver of the economy as envisioned in Resolution 68-NQ/TW, Vietnam should focus on three main policy directions:

First, strengthen the integration of Fintech into corporate digital transformation by accelerating the development of regulatory sandboxes for new Fintech products — particularly in digital payments, digital credit, and digital banking. This should be accompanied by promoting open banking and financial data sharing among banks, Fintech firms, and businesses.

To implement this effectively:

• The State Bank of Vietnam should complete the regulatory sandbox framework by 2025–2026.

• The Ministry of Science and Technology, in coordination with the Ministry of Finance, should develop open API standards for the financial sector between 2025–2027.

• The government should introduce incentives for private firms to invest in financial technology infrastructure.

Second, develop the green capital market and sustainable credit by expanding green credit schemes and encouraging the issuance of green and sustainable bonds.

This directly aligns with Section III.3.2 of Resolution 68-NQ/TW, which calls for "strengthening green credit development" and "interest rate support mechanisms for private enterprises implementing green projects."

To achieve this:

• Between 2025–2027, the State Bank and Ministry of Finance should develop a green taxonomy and project verification mechanisms.

• From 2027–2028, the Ministry of Finance should establish transparency regulations for green bond issuance.

• Between 2028–2030, a national climate bank should be established to provide long-term credit for private sector green projects.

Third, promote venture capital investment in high-tech and innovation sectors. The state can co-invest with private venture capital funds in priority areas such as AI, clean technology, and digital transformation, while also improving the legal framework for venture capital.

To realize this under Resolution 68-NQ/TW:

• The Ministry of Finance should create a State-backed Fund of Funds (FoF) model, contributing 20–30% of capital to private VC funds investing in high-tech sectors.

• The Corporate Income Tax Law should be amended by the end of 2025 to offer tax incentives to VC funds and tech startups.

• The Ministry of Science and Technology should work with the Ministry of Finance to develop innovation centers tailored to private sector needs.

These combined efforts aim to unlock new financial leverage, empowering Vietnam’s private sector to thrive in the digital and green economy of the future.