There is no single authority that has overall power to regulate fintech/insurtech in Vietnam. In fact, each authority may play a different role in regulating this area:

• State Bank of Vietnam (SBV) – Vietnam's central bank takes charge of banking activities (for example, moneylending, payment and settlement systems, money exchange and remittance) and other banking and financial activities of credit institutions.
• Ministry of Planning and Investment (MPI) is responsible for regulating investment activities (for example, equity crowdfunding platforms).
• Ministry of Information and Communications (MIC) is responsible for personal data privacy.
• Ministry of Finance (MOF) is in charge of insurance business by insurers and insurance brokers, as well as securities companies and fund management companies.
• Ministry of Science and Technology (MOST) is responsible for the intellectual property regime.

There is no single comprehensive or specific law on fintech/insurtech, but depending on the areas involved, such activities may be governed by relevant existing laws.

In principle, fintech/insurtech business must first observe the general regulations, such as the Civil Code, the Commercial Law, the Law on Enterprises, the Investment Law and other specialized regulations.

Activities involving insurance business of insurers and insurance brokers in Vietnam may be governed by or regulated under the Law on Insurance Business and its implementing regulations.

Activities involving credit institutions in relation to financial and banking services, including payment, money exchange, moneylending and remittance businesses, may be subject to, among others, the Law on Credit Institutions and the Ordinance on Foreign Exchange Control and their specific implementing regulations.

Activities involving securities companies and fund management companies may be governed by or regulated under the Securities Law and its specific implementing regulations.

The Vietnamese government is aware of technological developments and it encourages fintech/insurtech activities. However, some laws and regulations would need to be adjusted or developed for fintech/insurtech activities. The authorities, such as the SBV and the MOF,
may take a conservative view in granting relevant approval and license.

• Developing corresponding legal framework for fintech activities in Vietnam – To keep up with the development of fintech in Vietnam, regulators have gradually improved and updated its legal framework, with consideration of developments of fintech/insurtech
  activities, including regulations on e-commerce activities and intermediary payment services. In relation to the insurance industry, under the recently issued new decree, the sale of insurance products "via electronic transactions" is added into the possible channels that local insurers can use for sale of insurance products. This is expected to provide a legal basis to recognize online distribution channel and promote fintech activities in the insurance market.
• Supporting and funding – Vietnamese authorities are aware of the rapid development of fintech/insurtech activities in Vietnam. For the first time in Vietnam, the MOST and the government of Vietnam took the initiative of stimulating the growth of technology start-ups in Vietnam by launching the project "Silicon Valley Ecosystem in Vietnam." The project seeks to create an ecosystem of innovations and technology commercialization in Vietnam.

Nonetheless, insurance, banking and other financial services are sensitive areas that need to be regulated. Although some authorities remain rather supportive, the SBV and the MOF usually take more conservative views toward technology development in the insurance, financial and banking sectors. For instance, the SBV specifically disallows all use of virtual currency as a payment method, including Bitcoin, in Vietnam.

Generally, the government encourages fintech/insurtech innovation in Vietnam. Yet, given that insurance, banking and finance are considered sensitive areas in Vietnam, the authorities such as the SBV and the MOF may take a conservative view in granting relevant approval and licenses.

The licenses required will depend on the specific activities contemplated. We recommend seeking the advice of local counsel.

For banking, lending, payment, foreign exchange-related services, licenses or approvals are required by the SBV. For instance, to provide intermediary payment services (for example, e-wallet, payment portal), fintech/insurtech companies must apply for an intermediary payment license at the SBV.

For insurance businesses, insurers and insurance brokers are required to apply for a business license from the MOF's Insurance Supervisory Authority.

For securities and fund management businesses, licenses or approvals are required by the MOF's State Securities Commission.

Furthermore, if the fintech/insurtech innovation involves a patentable invention or if there are plans to register a trademark, the relevant companies are strongly recommended to obtain the patent and/or trademark registrations.

Criteria to obtain a license and how long it takes to obtain the license depend on the type of license to be applied, the relevant laws and the licensing authorities.

From a general standpoint, the criteria to obtain licenses shall be based on legal conditions under local laws and relevant international treaties, for example, Vietnam's WTO Commitments, financial capacity of investors, requirements and feasibility of proposed business models, registered and paid-up charter capital, corporate governance requirements, and requirements on key personnel and human resources. The timeline may also vary depending on whether the direct licensing authority needs to consult with higher or relevant authorities before it issues the license.

There are no specific regulations for the use of telematics or biometrics on its own. However, insurance companies should ensure that such use is compliant with any existing regulations or conduct of business requirements. Data privacy concerns may also apply. Further, depending on how such technology is used, we may need to consider whether other areas of regulation are attracted (for example, telecommunications or pharmaceuticals).

There is no specific legal regulation drawing a distinction between institutions that are "too big to fail" versus "too small to care." However, in practice, large-scale institutions or entities carrying higher risks to the relevant financial systems, whether or not from fintech/insurtech innovation, often receive more attention from or stricter supervisions by the authorities.

Insurance companies should comply with the Information Technology Law, the Law on Network Information Security, and the Law on E-Commerce and relevant specific guiding regulations.

Vietnam has no single comprehensive law that governs big data or addresses individual and organizational privacy rights. Instead, these issues and relevant provisions are governed under the Civil Code, the IT Law, the Law on Network Information Security, the Consumer Protection Law, the Penal Code, the Insurance Business Law, the Telecommunications Law and other specialized regulations (where applicable), where these matters are addressed in fairly general terms, and in certain implementing regulations that contain more specific provisions.

No. Vietnam data privacy regulations remain rather nascent and only impose basic privacy requirements.

As a general principle, individuals and organizations must grant their prior informed consent to the collection, use and transfer of their personal information. Proper consent requires that the individual or organization collecting, using and/or transferring the personal information, discloses to the person to whom it pertains where the information will be transmitted to and consolidated, how it will be used, to whom the personal information will be transferred and for how long it will be stored.

An organization should cease to retain personal data as soon as the purpose for which the personal data was collected is no longer being served, or when the agreed-upon retention period expires.

On 19 November 2015, Vietnam adopted the Law on Network Information Security, which will take effect on 1 July 2016. This law prescribes, among others, cyber information security activities; civil cryptography products and services; and standards and technical regulations on cyber information security. On 6 June 2017, the government and the Ministry of Public Security (MPS) released their first draft of the Law on Cybersecurity (Draft Law) for public consultation between 8 June and 8 August 2017. While a definite date is yet to be published, the National Assembly will review and comment on the Draft Law at its fourth meeting later in 2017.

Fintech/insurtech is new in Vietnam, but we have seen certain insurance companies starting to look for fintech/insurtech innovations in analyzing big data, which can help them to determine their target customers and business decisions.

There are no specific cases by the financial regulators so far.

• The majority of consumers in Vietnam are generally still unfamiliar with fintech/insurtech innovations. As such, consumers prefer the traditional means of financial instruments, which seem to be safer and easier to use.
• Vietnam lacks skilled and trained employees specializing in fintech/insurtech innovations.
• Despite regular legislative updates, the legal framework of Vietnam has not effectively caught up with the rapid development of technology in general and fintech/insurtech in particular.

The development of fintech/insurtech innovations is expected to introduce new business opportunities and business models in the insurance, banking and financial sectors. These are expected to deliver higher growth and efficiency and better services.

We expect to see insurance companies more involved in insurtech innovation in many areas. Development of insurtech will offer more financial choice to customers, which will have significant impact on the market of insurance business. We expect to see more and more
insurance companies cooperate with insurtech players to diversify their insurance products, diversify their distribution channels and facilitate the development of the insurance market in Vietnam. In particular, electronic transactions will be developed to supersede traditional transactions. In doing so, insurers will improve their competitive advantage and bring more benefit to the insurance purchasers as well.