Key Takeaways from 8th FIDN Conference: Financial Infrastructure Support for Post-Pandemic Economic Recovery in Asia Pacific

04 December 2020 - 09:40 AM Alternate Text

 

HCMC: Dec 26th 2020; FiinGroup participated in and delivered a presentation about “How Data Analytics are Enabling Foreign Trade and Digital Finance for Vietnamese SMEs” in the 8th FIDN Conference: Financial Infrastructure Support for Post-Pandemic Economic Recovery in Asia Pacific.The conference organized by the State Bank of Vietnam (“SBV”), APEC Business Advisory Council International Finance Corporation (IFC), World Bank Group.

We found the event very useful for our information business in data & analytics and we would like to summarize few findings relating to Vietnam as a specific country which would be highly relevant for our client organizations in two categories: (i) banking, consumer finance companies especially who are considering to tap on Supply Chain Finance (“SCF”) for Vietnamese enterprises in a new way as digital banking; (ii) corporates who are interested in trade & supply chain management for purpose of risk management or looking for buyers or sellers as Vietnamese counterparts.

  • Cross-border SCF digitalization: Asian exports are back at pre-COVID levels partially thanks for the application of digital platforms for trade connections and trade-supply chain finance. There have been various case studies presented and discussed at the 1-day event.
  • Data & Analytics Companies has supported micro & small lending in the region but not yet common in Vietnam: the credit report of the SBV’s Credit Information Center (CIC) is an important basis for enterprises to judge loan applications. The report includes the credit status of individuals and enterprises. However, the problem is that it has a limited coverage: around 44% of the Vietnamese population have adequate lending histories, appropriate third-party institutions are demanded to provide data & analytics services with the help of fintech.
  • SCF in Vietnam is on a small scale: according a presentation from BIDV, while the import-export turnover has seen significant increase (about 14% per year in 2011-2019); Factoring is currently SCF’s main product, others are not widely available in Vietnam; SCF solutions are provided by commercial banks, NBFI (e.g., finance companies) has not yet entered the market.
  • Factoring in Vietnam remains modest scale, reaching USD1.1 billion in 2019 according to FCI. Commercial banks and specialized finance companies have not yet to be allowed to provide non-recourse factoring service, hindering the diversification of the factoring products on the market.

Joining the session about the Development of An Interoperable National Digital Identity and KYC Infrastructure for a Digital Future, FiinGroup has a presentation on how it has applied data & analytics in supporting the trade and investments of foreign investors into Vietnam during the Covid-19 pandemic.

  • As a very open economy like Vietnam and in the context of various trade initiatives with the World, the application of data analytics engine and its platform will help transform the old-fashion way of trade promotion and KYC process in working with Vietnamese counterparts.
  • FiinGroup has delivered more than 15,000 business reports via our FiinGate Platform and on-call service for 11M2020 for various usages from trade financing, trade insurance, business matching, investment screening to business due diligence with regard to enterprises in Vietnam.

  • As a service provider, we aim at increasing analytics coverage from 20% to 50% of all Vietnamese SMEs by 2024 by all major type of information coverage and beyond the financial and credit data. The data analytics capability would help us develop other platforms to enable digital transformation in cross-border trades and digital finance.
  • Going beyond the supply chain finance, we are working with partners to introduce the SME Connect Platform where SMEs are the focus and data analytics will help bring benefits to both SMEs, their counterparts in the supply chain finance and digital finance providers (digital banking, P2P, trade finance, trade insurance).

You can download FiinGroup’s Presentation by clicking the link here.

There are other 16 speakers at the Event, we have asked permission from the organizer to share with you their presentation decks, please feel free to contact Ms. Trang Nguyen, Senior Client Advisor at FiinGroup via phone number +84 969 364 969 or email her at trang.nguyenhuyen@fiingroup.vn 

FiinGroup