competitiveness

Pushing for FinTech accelerated development in Vietnam and Asean

 

fintech

 

Financial transactions are done up to recently mostly through the intermediary of financial institutions (banks, insurance companies, stock brokers).
Even in countries where there are stringent regulations on antitrust and customer protection, with the key instruments at their control (ie. rules of the game’s setting, funding with central bank, risk management…) , the financial institutions keep the upper hand in the relationship with customers.

Such a situation may not last longer now with the larger use of internet and smartphones and the development of financial technology (“FinTech”) using software. Effectively, an increasing number of financial services are now open to new players either:
- as part of the financial service process (eg. advisory on best offers, use of big data analytics and predictive modeling)
- as new financial service provider (Peer-to-peer lending & investments, crowdfunding, private insurance…)

Such new services which can be quite similar across national borders and so can be sold internationally. The most successful and popular are the ones that are the more disrupting, the most simple to process, the lower cost thanks to to the suppression of traditional intermediaries. FinTech services are however still today in the early stage in most countries. There is thus a window of opportunities that is open for any country willing to take part and build its own position in the global financial services market. This will also contribute to make the financial services industry more competitive and so with easier credit access and lower costs particularly for the SMEs.

Like Singapore, Malaysia , Thailand in the region, Vietnam should push and accelerate its development of FinTech industry and the corresponding ecosystems (regulations, customer protection, intellectual property, startup funding, incubators), leveraging particularly on the country’s strong position on information technology and the population’s high entrepreneurial motivation and the now Asean important market.

ATTP Capital is ready to accompany your business in this FinTech development either through our involvement during the startup process or direct investment in your capital funding.

 

 

ad

 

Implement an Enterprise Resource Planning (ERP) for your business to stay competitive

 

 

erp

 

In the competitive environment inherent to an economy largely open to free trade like that of Vietnam, the implementation of adequate information technology tools and particularly the entreprise resource planning (ERP), is critical for a business to remain alive and develop.

An ERP, in an integrated manner and using common system and databases, can :
- cover key functional areas of a business (accounting , human resources, manufacturing, customer and order processing, supply chain management, project management )
- ensure efficient processes of operations for each of the functions
- provide needed information on a timely basis for the management of the business.

Today, there are open source ERP systems that can be implemented for the small and medium businesses with limited costs.

ATTP Capital can accompany your business where necessary along the key steps of the ERP implementation, ie. Definition of ERP key objectives, Selection of possible software, Preparation of Business case to support purchase, Conduct of Change Management, Supervise the system implementation.

 

 

 

Vietnam SMEs and Growth strategy

 

prelim overview

 

 

Vietnam now is at the center of a free trade zone covering a major part of world economy thank to the free trade agreements already signed and implemented ( Asean, Japan, Korea, China, India, Australia, New Zealand, Chile, Customs Union of Russia, Belarus and Kazakhstan) or being finalized ( Trans-Pacific Partnership which has a much larger scope than just tax and customs, signed in October 2015 and pending ratification, European Union, negotiation concluded and to be signed in beginning 2016).

With its lower wages but educated workforce, its relatively good infrastructure and easy business environment and the State’s volontarist industrial policy, Vietnam will benefit a significant competitive advantage, not only on cost, to attract foreign investments to become a stronger world manufacturing hub compared to its most direct competitors (China, India, Thailand, Philippines) and to increase its export power particularly within its large free trade zone.

Meantime, the local business, particularly SMEs, will face in its domestic market with tougher competition from other countries as a result of a long time priority given to export at the detriment of home market and of unsufficient funding and so investments in product quality, innovation and marketing compared to competitive products from other countries.

Overall however, being part of large free trade zone, which includes the most important consumer markets such as the US, Europe, China, Russia, India, Mexico and Asean countries, provides the historic opportunity for Vietnam’s enterprises to enter and develop and grow market share, not only on labor contribution but more importantly on value added products and services. To make this happens requires :

- A clear understanding of the business current status
- A careful thinking , planning and execution by business leaders in respect of market and product offering, business organization, profitability and funding over a period of 3 to 5 years.

At ATTP Capital, we work together with our clients in this critical process through the preparation of the preliminary Business Overview in the first stage and then the building of the Growth Strategy in the second stage.

 

 

ad

 

Subscribe to competitiveness