Hanoi (VNS/VNA) -Opportunities will slip through Vietnamese firms’ hands if a sandbox is notdeveloped soon, NextTech chairman Nguyen Hoa Binh said at a conference on November7.

A sandbox is a regulatory fieldwhere technological firms operate and test new ideas to help the local economycatch up with the latest global developments.

New, creative business modelscannot be handled by a traditional legal framework, he said.

For the last 10 years, electronicpayment has become a big sector in Vietnam. But without the support of theState Bank of Vietnam (SBV), this sector wouldn’t have developed, nor wouldfinancial technology (fintech) firms, Binh said.

If new technologies and applications– which prove efficient for society – are not used broadly, there will be morespending and instability for development, he said.

In addition, the State budget maysuffer a big loss of income as the lack of regulations may help foreigntraders evade taxes when doing business via tech apps in Vietnam, he said.

Moreover, foreign investors willbe discouraged when finding investment opportunities in the country as theyfear a lack of regulations will enhance risks, Binh said.

Nguyen Xuan Viet Binh, executiveof e-wallet firm Moca – partner with mobile transport platform Grab, said aregulatory sandbox may force fintech firms to get more creative.

People will be able to getcloser access to comprehensive financial and banking services, encouraging the developmentof a cashless economy in Vietnam, he said.

He suggested the regulatorysandbox should differentiate already existing ideas from brand new ones ascurrent methods should be monitored in the short term to evaluate theirfeasibility and efficiency.

Meanwhile, authorities shouldwatch new business models such as peer-to-peer (P2P) lending in the long termso companies can make the best use of those models, he added.

Businesses can develop theirproducts and services, then the outcomes are evaluated by the public. Anyadvantages and drawbacks would be found, as will solutions, Viet Binh said.

According to Financial Deep Mindgeneral director Bui Viet Dung, a regulatory sandbox should only contains firmswith new business models and technologies and Government agencies should watchthe sandbox closely with risk-hedging solutions.

Ngo Van Duc, a senior official atthe Payment Department of the SBV, acknowledged there was no doubt the fintechsector will grow stronger in Vietnam, however, more could be done to help it.

He said there are no regulationsmentioning the management of fintech firms, so it is necessary to make a placewhere companies are free to test new ideas.

Nguyen Quang Dong, Director ofthe Institute for Policy Studies and Media Development (IPS), suggested theGovernment form a special unit to take care of the development of theregulatory sandbox.

The unit should include differentministries, the SBV and other agencies so they are all held accountable,he said./.