Inside Vietnam’s fintech boom

As a fintech leader in the growing Vietnamese economy, Duong Nguyen FCPA knows technology will be at the core of the nation’s future — but not at the expense of skilled accounting professionals.

Nguyen consulting chair of EY Vietnam, has been recognised as one of the top 15 fintech influencers in Vietnam, a country seen as a bright spot for fintech investment because of its robust economy, digital innovation, tech-savvy middle class and digitally proficient small businesses.

She expects fintech to be a bridge that helps government and financial institutions bring more services to more people, in areas such as open banking and digital payments.

“Fintech and digital technology are a hot topic here — and they are the future,” says Nguyen, who has been instrumental in forging a regulatory sandbox to test concepts and draft new laws for the fintech ecosystem in Vietnam.

The rise of fintech and artificial intelligence (AI) has sparked a debate in Vietnam and elsewhere about the role of auditors in an increasingly tech-driven finance world. Nguyen says some critics believe AI and other technology platforms will render accountants and auditors redundant, with robots taking over auditing tasks such as substantive and control testing.

“At the end of the day, technology is technology, but it’s managed by human beings,” she says. “Yes, the introduction of AI will make auditing more efficient, but it’s not the answer to everything.

We still need to use human insight to understand the logic behind a business’s motivation and inspiration, and how leaders want to operate.”

The path to success

In addition to her consulting chair position at EY, Nguyen is the acceleration leader for EY ASEAN’s financial services business, and the financial services leader for Vietnam, Laos and Cambodia. She is also the firm’s lead audit partner for a range of major clients in the banking, finance leasing, securities and fund-management space.

Nguyen was just one of 10 university graduates from a field of 500 in her year to be picked up by the Big Four firms.

However, her early days at EY were not without challenges, and Nguyen initially felt auditing lacked creativity.

“Auditing at the time was very fashionable and it was a skill that was in demand in Vietnam,” she explains. “The job paid well and that’s why I accepted the offer, but two or three months after entering the firm I was thinking, ‘I’m just not suitable for this’.”

 

"Yes, the introduction of AI will make auditing more efficient, but it’s not the answer to everything. We still need to use human insight to understand the logic behind a business’s motivation and inspiration, and how leaders want to operate."

 

With the support and encouragement from her then senior manager, Cuong Dinh Tran — now the country managing partner for EY Vietnam, Laos and Cambodia — Nguyen quickly gained an appreciation of the importance of accounting and auditing and demonstrated a clear aptitude for the work.

Offered a role in EY’s Melbourne auditing team, she spent five years in Australia honing her skills, an experience that paved the way for her future career achievements in Vietnam.

Nguyen says that one of the keys to her success has been an ability to drive new opportunities by aligning different markets and service lines, and then focusing on sustainable, long-term revenue. For other financial services leaders and managers seeking to thrive, Nguyen offers a snapshot of the skills and traits that can make a difference.

First, she emphasises the importance of discipline and strong principles in effective leadership. “That’s the foundation of our profession,” she says. Second, it is important to be cognisant of the latest market trends and be agile and flexible enough to pursue those opportunities.

Third, to complement a disciplined and principled approach, embrace ethics and integrity. “We need to have integrity in whatever we do.”

Green light

In line with her ethical approach to business, Nguyen has been a strong proponent of sustainability and a green economy for Vietnam and its neighbouring countries.

She believes that institutions can gain an edge if they align themselves with the needs of international lenders and global environmental, social and governance (ESG) reporting requirements.

Nguyen says change will require banks to incorporate more green loans into their lending portfolios, while private sector investment will be critical to help decarbonise Vietnam’s economy.

As one of Asia’s most carbon-intensive economies, relying heavily on industries such as mining and agriculture, Vietnam is under pressure to rapidly transition out of high-carbon activities, including switching to a low-carbon energy system.

Nguyen says that while sustainability and ESG are big talking points, “execution will be most important”. This will entail building carbon-neutral supply chains, offering global manufacturers green energy and having appropriate regulatory measures in place.

“Sustainability is not just a need anymore — it’s a must for all organisations.

However, we need to be prepared. The transition may be more expensive for businesses in the short term, but it will give them a more sustainable, long-term future.”

Auditing remains crucial

Over the past five years, Nguyen has shifted her focus from auditing to consulting.

She acknowledges that Vietnam’s auditing sector has faced significant challenges in recent years, such as growing public expectations about what auditors should do versus what they can do.

However, in an evolving business world, Nguyen is adamant that auditors will continue to play a crucial role in providing appropriate business checks and balances.

She adds that the Big Four firms’ auditing teams in Vietnam have contributed significantly to the stability of markets and the economy in the past few decades and continue to be highly professional and effective.

“Auditors can still exert a positive influence on business, and we can still exercise our professional scepticism and maintain our professionalism.”

One piece of advice

“Be passionate about what you do and put your heart into it.”