Analysis of the Factors Affecting the Regional Fintech Hub of Ho Chi Minh City

Abstract

Ho Chi Minh City is emerging as a potential candidate for becoming a financial technology (fintech) hub in Southeast Asia. With the rapid global development of the fintech industry and the importance of financial technology to economic growth, researching and evaluating the factors driving this potential is essential. This study identifies and assesses the critical determinants for this development, including the legal framework, technological infrastructure, human resources, startup ecosystem, government support policies, and foreign investment attraction factors. Using survey results from 1,147 respondents and applying exploratory factor analysis (EFA) and multi-group structural equation modelling (SEM) between financial and non-financial experts, the study reveals that while Ho Chi Minh City benefits from favourable conditions such as resources and government commitment, there are still many challenges. These challenges include more investment capital, transparent regulations, and the need to develop technological infrastructure and specialized skills in technology and data. Consequently, the study proposes strategies to address these limitations and promote Ho Chi Minh City’s development into a leading fintech hub.