Vietnam approves two-year sandbox for P2P lending

The pilot will test peer-to-peer (P2P) lending, credit scoring technologies, and the use of open application programming interfaces (APIs) for data sharing within the banking sector. 

The scheme introduces a controlled testing framework, or regulatory sandbox, designed to assess new fintech models under supervision by the State Bank of Vietnam (SBV). Only P2P lending firms with explicit approval from the SBV will be eligible to operate during the pilot. Foreign banks are barred from participating, and involvement in the sandbox does not constitute legal recognition or assurance of future regulatory compliance. 

P2P lending platforms function by connecting individual lenders and borrowers via digital channels, without involving traditional banks. While the model has seen growth in Vietnam, now home to around 100 P2P lending companies, many backed by foreign capital, regulators have flagged issues relating to transparency, contract clarity, and dispute resolution.

Focus on consumer protection and systemic oversight

Officials from the central bank have expressed concern about misuse of the P2P model by firms making misleading claims. According to SBV representatives, some platforms have advertised unrealistically high returns or promised low interest rates, only to apply significantly higher charges in practice. Others have reportedly presented the lending process as simple and accessible, while disguising the true costs and risks involved. 

In addition to lending services, the regulatory sandbox will include trials of digital credit scoring tools and API-based data sharing, reflecting the evolution of Vietnam’s fintech ecosystem. According to the official press release, the country currently has around 200 fintech companies, the majority of which support banks through digital payments and financial technology solutions. 

Government representatives have stated that the pilot aims to support financial innovation while managing systemic risks. The initiative aims to expand access to affordable financial services, particularly for underserved populations, and to establish clearer oversight mechanisms as the fintech sector continues to develop.