The co-operation agreement on development of fintech and the application of high technology in smart cities between Vietnamese conglomerates BRG group, VNPT group, SeABank, and Japan’s conglomerate Sumitomo group was awarded under the witness of Prime Minister Nguyen Xuan Phuc and representatives of the governments of the two countries.
As VIR has reported previously, the co-operation between the two nations has seen positive developments as the two countries are ramping up their investment ties on the back of strengthened bilateral co-operation and Vietnam’s thirst for Japanese investment and its business climate improvements.
|BRG, VNPT, Sumitomo, and SeABank sign the partnership agreement to work on fintech and smart city development |
Taking place during Prime Minister Nguyen Xuan Phuc’s visit to Japan, the partnership among the four high-profile names from the two countries could translate into a success of projects related to fintech and smart cities.
In the field of fintech, according to consultancy firm Statista, the Vietnamese fintech market is predicted to reach $12.33 billion by 2022. Hence, this co-operation agreement was implemented to promote cashless economy in the context of Vietnam’s high smartphone penetration rates, as well as young and tech-affine population.
“Fintech has begun to develop a few years ago, but it has already had significant impacts on enabling the fast transformation of the financial landscape in the context of the Fourth Industrial Revolution. So, investment from conglomerates to beef up the fintech development is a global trend,” said BRG Group’s chairwoman Nguyen Thi Nga.
|The co-operation of BRG, VNPT, Sumitomo, and SeABank will unleash Vietnam’s potentials |
In the area of urban development, smart city is the new buzzword across the globe. The part of the smart city concept which makes it so desirable is the use of high technology in the building environment in order to tackle major problems facing cities, such as pollution, traffic congestion, and energy conservation, to name a few.
Global spending on information technology for smart cities will reach $135 billion in 2021, growing at an average annual rate of nearly 20 per cent, research company IDC projects. As a result, this partnership of Vietnamese and Japanese firms is an important practice to unleash Vietnam’s potential and become a hotbed of smart cities.
“Japan has just entered a new era called Reiwa, which means harmony, order, and development. Therefore, the co-operation of Vietnam’s giant firms VNPT, BRG, and SeABank with Sumitomo definitely brings upbeat prospects to the two countries partnership,” said Masahiro Miyashita, director of the business intelligence division of Sumitomo group.