Nguyễn Diệp

HCM CITY — Digital solutions to help bridge the gap between Vietnamese SMEs and the international market that account for Việt Nam's unique characteristics can help promote global competitiveness, according to Ant International, a leading global provider of digital payment, digitalisation and financial technology.

As Việt Nam’s digital economy continues its rapid ascent, international fintech leaders are looking to deepen their footprint through strategic partnerships with local partners.

Douglas Feagin, president of Ant International, said that in the landscape of Southeast Asian finance, Việt Nam stands out as a market defined by high economic vigor and a remarkably swift transition toward digital-first consumption.

For global fintech players, the challenge is no longer just about entering the market, but about integrating into a local ecosystem that has already established its own unique digital identity.

A primary hurdle for Vietnamese small- and medium-sized enterprises (SMEs) has long been the "participation gap" in the global value chain. While large corporations have the infrastructure to handle international transactions, smaller players often remain confined to domestic borders.

Douglas Feagin identified the next five years as a transformative era, where digital payments evolve beyond mere transactions into strategic conduits connecting SMEs with global market opportunities.

“Việt Nam is a very exciting market for us,” he said.

Through the expansion of Alipay+ – a cross-border mobile payments and marketing platform that connects over 50 digital wallets globally – the goal is to allow local merchants to instantly serve international tourists using their home wallets.

This "global-to-local" connectivity is not merely a convenience; it is a competitive necessity.

By accepting diverse funding sources, Vietnamese SMEs can now compete on a level playing field within the regional digital economy.

Adapting to the 'VietQR' Standard

Việt Nam’s digital journey is unique due to its heavy reliance on QR code-based payments, a trend accelerated by the standardisation of VietQR.

Unlike markets that skipped directly to NFC (near-field communication) or remained card-heavy, Việt Nam has built a unified foundation that simplifies the merchant experience.

Ant International’s strategy reflects a "local-first" approach. Rather than imposing a foreign model, the firm aligns its gateways with established local habits.

“The standardisation of VietQR has been a key enabler,” Feagin said.

Recent collaborations with NAPAS and Vietcombank to link QR payment connectivity between Việt Nam and China exemplify this.

By allowing Chinese travellers to pay at local outlets via VietQR, the partnership converts digital convenience into direct tourism spending for the Vietnamese economy.

Despite the optimism, the road to seamless cross-border finance is fraught with structural challenges.

Market fragmentation remains a significant barrier, with each country operating under distinct regulatory frameworks. Furthermore, global economic volatility makes "time-to-settlement" a critical risk factor.

“Delays in settlement – even by a day or two – can significantly impact value due to foreign exchange fluctuations,” Feagin said.

To mitigate this, Ant International leverages its Whale platform, a blockchain-based solution using tokenised deposits that processes approximately 45 per cent of transactions on-chain, allowing for 24/7 settlements and reducing FX risks for SMEs.

Perhaps the most significant shift is occurring in credit and risk management, he said. Traditional banking often overlooks the "underbanked" segment due to a lack of physical collateral.

However, through Bettr, a business line focused on digital lending and embedded finance, AI models are used to assess creditworthiness based on real-time cash flow and receivables.

“We see this as a major opportunity and responsibility to bring more businesses and consumers into the formal financial system,” Feagin said.

Beyond credit, AI is being deployed via "GenAI Copilot" to handle the self-service digital transformation of small businesses.

Currently, 72 per cent of the firm’s partner merchants are able to complete their setup through a fully self-service process using these AI-powered tools.

In alignment with Việt Nam’s 2030 digital transformation roadmap, the strategic shift toward sustainable growth and digital literacy is gaining momentum.

Within this framework, the establishment of cross-border payment corridors is poised to become a vital engine for the tourism industry – a core priority for the government.

As Việt Nam integrates further into the regional economy, the convergence of robust local infrastructure and global digital ecosystems will likely serve as the bedrock for the next generation of Vietnamese entrepreneurship. — BIZHUB/VNS