Providing Credibility Records, Tokoin Helps Vietnam’s MSMEs to Embrace Financial Inclusion

Tokoin on Vietnam’s Roadshow – Targeting the global MSME sector, Tokoin conducted a global roadshow to several countries, including Vietnam as the third country to visit. Following the visits to Hong Kong and Singapore, Tokoin’s introduction in Vietnam also received a warm welcome.

The Vietnam’s roadshow consisted of a panel discussion and a talk show presented by two speakers from Tokoin and two guests who are Vietnamese industry players.

Tokoin was represented by Reiner Bonifasius Rahardja as the CEO of Tokoin, and Gun Hee Lee and Michael Park from Blockcrafters Capital as Tokoin’s advisors.

“As a blockchain platform, Tokoin will provide MSMEs with a digital business ID and a digital ledger to record every transaction carried out by the MSMEs on our platform,”

Reiner said

Having a similar business culture to that of Indonesia, Vietnam’s industrial sector is also supported by MSMEs as the driving forces. As one of the developing countries in Asia, Vietnam has attained remarkable economic growth and sustainability. In line with the country’s economic development, Small- and medium-sized enterprises have also experienced exponential growth.

Small and medium-sized enterprises play a major role in Vietnam. Being the country’s economic driving forces, Vietnam’s SMEs account for 98% of all enterprises, 40% of GDP, and 50% of employment. The number of SMEs has risen by around 100,000.

However, despite those phenomenal achievements, Vietnam’s SMEs remain weak in terms of access to business solutions, such as funding and insurance. Credit access becomes a major concern for Vietnam’s MSMEs. Banks which provide commercial loans prefer to allocate their resources to larger firms rather than MSMEs. According to banks, higher default risks, the lack of financial transparency, and the lack of assets for a mortgage are major factors which prevent them from lending money to SMEs.

As a person who has for long been involved in the MSMEs world, Reiner really understands how difficult it is for MSMEs to accelerating their business.

“There are more than 400 million MSMEs in developing countries, comprising of more than 90% of the world’s businesses. Thus far, MSMEs have had difficulties in accessing business assistance from financial institutions. They are constrained by the requirements for the credibility of the business. And this happens because they can’t provide a complete record of financial transactions.”

said Reiner Rahardja

By using blockchain technology, Tokoin is able to assist Vietnam’s MSMEs in building credible credit scoring by recording every transaction.

“By combining a digital identity and a digital ledger, Tokoin will be able to provide MSMEs with credit scoring services. With proper technology implementation, Tokoin facilitates MSMEs to record every transaction as a set of data that can be used to achieve financial transparency. This technology provides MSMEs with valuable assets which help them to embrace economic inclusion,”

added Michael Park

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Author: Tokoin Official

TOKOIN is a platform that establishes the identity of MSMEs as an acceptable reputation in the business ecosystem. TOKOIN presents a better and modern business ecosystem that offers valuable partnerships to address inclusive growth. As a platform, TOKOIN captures and processes business information from the users as a valuable asset, which, in our ecosystem, translates to the trusted reputation of the MSMEs as our users to access previously inaccessible financial business services from providers which act as our partners. Therefore, TOKOIN links the business and financial sectors to launch a scheme of financial inclusion. The partnerships formed in TOKOIN will subsequently contribute to the national economic growth.