Peer-to-peer lending, one of three sectors approved for pilot operation, is struggling to prove its value as competition intensifies fiercely in the online lending market. In the doldrums Three years after its initial drafting, the Government has issued Decree No. 94/2025/ND-CP, establishing a regulatory sandbox for financial technology solutions in the banking sector. The decree allows pilot testing in three areas: credit scoring, data sharing through open application programming interfaces (APIs), and peer-to-peer (P2P) lending. P2P lending has attracted attention for its history of rapid growth. The model links borrowers directly with lenders, or investors, eliminating traditional financial intermediaries. While this approach reduces borrowing costs and improves access to capital, it also comes with considerable risks. No official data is available on the size of the P2P lending sector. A 2022 report by Nextrans estimated that Vietnam had over 260 fintech companies, with about 15%, or 42 firms, involved in P2P lending. Some sources, however, suggest the number could be much higher, reaching into the hundreds. Other official reports mention around 200 fintech companies, but without a sector breakdown. The P2P lending market has almost come to a standstill. Only a few platforms are still active, with many merely maintaining […]