Dublin, Sept. 08, 2022 (GLOBE NEWSWIRE) -- The "Vietnam Embedded Finance Business and Investment Opportunities Databook - 50+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments - Q1 2022 Update" report has been added to ResearchAndMarkets.com's offering.
Vietnam's Embedded Finance industry is expected to grow by 66.3% on annual basis to reach US$336.4 million in 2022.
The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 40.5% during 2022-2029. The embedded finance revenues in the country will increase from US$336.4 million in 2022 to reach US$2,188.4 million by 2029.
Growth in technology adoption in the country's insurance sector supported the embedded insurance market. Market players are pioneering AI technologies and digitization for sales and distribution activities and strategizing to seize the opportunities prevailing in the industry.
The government of Vietnam has established a program with a vision to transform Vietnam into a digital country. The program includes the plans and objectives to be achieved by the year 2025. The Vietnam government's development efforts for the country's digital transformation are expected to fuel the embedded insurance market in the forthcoming years.
Insurtechs are raising funds to expand their product portfolio in the Vietnamese embedded insurance industry. In 2020, Papaya Insurtech, a Vietnam-based insurtech company, raised pre-seed money and is now looking forward to raising US$1 million.
The company is planning to invest funding into automation and digitization technologies. As per the publisher's analysis, the growth in funding activities by insurtech players in Vietnam is expected to rope in technological advancements in the sector, consequently supporting the development of the embedded insurance market.
Like other embedded finance offerings, embedded lending is relatively new in Vietnam. The unregulated market is also allowing market players to enter the market without difficulty. The young and digital-savvy population, low rates of formal financial inclusion, and strong smartphone and Internet penetration have made the country a point of attention among foreign fintech players
In September 2021, Indonesia-based buy now, pay later (BNPL) start-up Kredivo entered into a partnership with Vietnam-based family investment office Phoenix Holdings. Kredivio is planning to capitalize on Phoenix Holding's existing client base and expand its foothold in the Vietnamese embedded lending market.
Furthermore, conventional financial institutions are also launching BNPL lending options to provide a seamless customer experience to customers.