UK Fintechs to Support Vietnam in Closing $90B Trade Finance Gap
British fintech firms are set to help Vietnam address a $90 billion trade finance shortfall by contributing to the development of a national trade finance registry aimed at enhancing credit accessibility for small and medium-sized enterprises (SMEs).
According to British Consul General Alexandra Smith, speaking at the Asian Banking and Finance and Insurance Asia Summit in Ho Chi Minh City on May 13, the proposed registry will boost transparency, streamline data sharing, strengthen risk management, and reduce the paperwork burden on small-scale importers and exporters.
Smith highlighted that although five major Vietnamese banks handle 60% of the country’s trade finance, they still depend on manual processes and outdated verification systems. British fintech companies are now collaborating with these banks to implement digital solutions that improve fraud detection and build SME confidence in trade finance systems.
She also noted a significant awareness gap, as many Vietnamese SMEs are unaware they can obtain funding for cross-border trade activities. Compounding the issue, complex loan procedures and high collateral demands often deter SMEs—especially those involved in importing and exporting—from seeking financing through local banks.
Citing a joint report by the International Finance Corporation and the World Trade Organization, Smith said that Vietnamese banks reject around 12% of trade finance applications, primarily from SMEs. By improving access to trade finance, Vietnam could potentially boost imports and exports by up to 9%, unlocking an additional $55 billion in annual trade volume.
With over 940,000 active enterprises in Vietnam—98% of which are SMEs—the country alone accounts for more than 25% of the ASEAN region’s estimated $350–$400 billion trade finance gap.
Beyond the registry, the UK is supporting the launch of a fintech sandbox in Vietnam. This initiative will test innovative credit scoring tools, promote secure and standardized data exchange between banks and suppliers, and explore peer-to-peer lending models to improve credit availability for underserved communities.
“Supportive regulation is essential to a successful fintech ecosystem,” Smith emphasized, noting that the sandbox will ensure innovations comply with local regulations.
Vietnam’s financial services sector currently contributes 4.9% to its GDP. Smith stressed that increasing this share is critical for continued economic growth.
She added that the UK is also delivering direct development support via a £25 million ($33.7 million) ASEAN economic integration program, which aims to improve financial inclusion and resilience across the region, including Vietnam.
UK–Vietnam trade has more than doubled over the past decade, exceeding £6 billion ($8.1 billion) in 2023. Smith mentioned that UK Export Finance is backing cross-border deals, especially in infrastructure and large-scale procurement. “UK Export Finance’s timely support is key to navigating today’s global trade challenges,” she said.
Reaffirming the UK’s commitment to open and fair trade, Smith called Vietnam a “reliable partner in both good times and bad.”
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