Validus’s Vietnam expansion marks its second international market foray after it entered Indonesia with its arm Batumbu in May 2019, the company said in a statement.
Validus Vietnam will start pilot programmes with local partners including VinaCapital’s portfolio company Coteccons and pharmacy retail chain Mediacare Vietnam. It will enlarge the financing support for Vietnamese SMEs across various sectors, including manufacturing, real estate, construction, healthcare, consumer services, retail and wholesale trade.
Validus Vietnam will operate using the same proprietary technology and credit scoring systems currently used in Singapore and Indonesia, the firm said.
“Helping our SMEs to grow will be crucial for Vietnam’s continued rise as a Southeast Asian economy,” commented Tran Thi Thuy Ha, chief business officer of Validus Vietnam.
SMEs make up 97 per cent of the country’s total businesses but get access to only 22 per cent of the entire bank lending, according to an Asian Development Bank study in 2019.
In Singapore, Validus claimed that the SMEs it has supported increased their annual revenue by 17 per cent on average, contributed S$403 million to the city state’s GDP, and supported more than 10,000 jobs in the country.
“Their impressive track record as a fast-growing fintech company and the impact that they’ve delivered to date is testament to their commitment and ability to successfully drive inclusive growth for SMEs across the region,” said Trung Hoang, deputy managing director at VinaCapital.