Chinese fintech company Ant Financial quietly takes stake in Vietnam’s eMonkey amid anti-China sentiment
- Alibaba affiliate Ant Financial has quietly acquired a sizeable stake in Vietnamese e-wallet eMonkey, sources say
- The move is not being announced due to concerns of pushback due to anti-China sentiment in Vietnam, according to people with knowledge of the situation
China’s Ant Financial, a fintech affiliate of e-commerce giant Alibaba, has quietly acquired a sizeable stake in a Vietnamese e-wallet eMonkey, people familiar with the matter said.
The move, negotiated over the summer, is not being announced due to concerns that anti-China sentiment in Vietnam could result in possible pushback, three people with knowledge of the situation said.
The strategic investment, Ant’s eighth international payments deal, will allow the firm to gain entry to Vietnam’s booming market of nearly 100 million people, a quarter of whom are under 25, and where e-commerce growth is among the highest in the region.
Vietnam’s rapid growth is drawing global technology giants, but Chinese firms have to operate cautiously given tensions with Beijing which often fuel anti-Chinese sentiment despite deep economic ties between the two countries.
Beijing and Hanoi have clashed over disputed maritime claims and concerns over China-backed special economic zones have triggered nationwide protests in Vietnam.
“This is a hot-button issue and is something that Vietnamese authorities have to balance themselves,” said Nick Marro, global trade lead at the Economist Intelligence Unit.