MoMo co-founder urges single fintech regulator, faster sandbox in Vietnam

Vietnam should establish a single regulatory focal point and adopt a more flexible sandbox regime to accelerate fintech innovation, said Nguyen Ba Diep, co-founder of e-wallet giant MoMo.

Currently, fintech firms often face overlapping oversight from multiple ministries, with some required to deal with as many as five regulators.

“There should be a single focal point for digitalization and fintech-related matters, so businesses can focus on their core expertise instead of spending excessive time on licensing and reporting,” Diep said at the Vietnam Private Sector Economic Forum (VPSF) on Monday.

He also called for a legal framework on open data and open API to enable cross-sector connectivity among banks, insurers, securities firms, and fintech players.

Broader access to non-traditional data, from healthcare and social security to e-commerce records, could enhance credit scoring, wealth management, digital insurance, and money market services, he noted.

"Such data would allow lenders to personalize loan rates and better distinguish between safe and risky borrowers," Diep argued.

Vietnam’s fintech sector remains dominated by payments, but Diep pointed to digital banking partnerships as the next growth driver.

By combining fintech’s customer reach with banks’ capital and risk expertise, digital banks could extend services such as savings and microloans to underserved groups, the executive stated, citing successful models in China and South Korea.

Starting July 1, Vietnam rolled out a two-year sandbox trial of peer-to-peer (P2P) lending, credit scoring, and data sharing via open application programming interfaces. However, Diep complained about the slow-moving regulatory sandbox procedures, which can take years for approvals.

He proposed a streamlined process allowing fintech firms to secure trial licenses within one to two months, with successful pilots eligible for full rollout.

“South Korea’s sandbox shows how governments can both encourage innovation and safeguard consumers,” he said, urging Vietnam to adopt a “one-stop” regulatory unit to manage fintech trials more efficiently.

On capital raising, Diep said fintechs require heavy upfront investment before reaching profitability, but current rules demand companies erase accumulated losses before listing.

He proposed a new IPO framework for technology firms, allowing them to access public markets earlier to fund expansion. “Allowing tech companies to go public sooner would unlock more capital for innovation, benefiting the wider economy,” he asserted.

Vietnam is home to approximately 200 fintech companies, with 90% operating in the banking sector, offering services like payments, rating apps, and credit scoring.

According to Robocash Group, Vietnam’s fintech sector is experiencing the second-fastest growth in the Association of Southeast Asian Nations (ASEAN), just behind Singapore, and was projected to reach a market value of $18 billion in 2024.