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Empowering Vietnam's Gen Z: Soft Saving, Digital Finance, and Tech-Driven Financial Planning

General Report May 7, 2025
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TABLE OF CONTENTS

  1. Summary
  2. Vietnam’s Digital Finance Revolution
  3. The Rise of Soft Saving Among Gen Z
  4. Tech-Driven Financial Sustainability
  5. Adapting Financial-Planning Best Practices
  6. Navigating Emerging Service Platforms
  7. Conclusion

1. Summary

  • As of May 2025, Vietnam's young adults are leading a significant transformation within the financial landscape, epitomized by a blend of innovative practices and ideas driven by technology. At the forefront of this evolution is the 'Soft Saving' movement, which encourages Gen Z to embrace a more balanced approach to financial management, prioritizing their current quality of life while still recognizing the necessity of saving. This shift represents a departure from traditional financial independence models, emphasizing personal fulfillment alongside economic stability.

  • Additionally, Vietnam has witnessed explosive growth in its digital payment systems, with nearly 17 billion cashless transactions recorded, illustrating a clear inclination towards technological engagement in financial services. The country's National Digital Transformation Program, which aims to normalize cashless transactions by 2030, positions Vietnam as a leader in digital finance within Asia. Young people are particularly embracing digital wallets, contributing to the nearly 60% of the global digital wallet user base attributed to the region.

  • Artificial intelligence (AI) has further revolutionized the banking sector, with banks adopting advanced AI solutions to enhance service delivery and operational efficiency. As of early 2025, most banking transactions are processed digitally, underscoring the importance of AI in fostering competitiveness in this rapidly evolving financial landscape. Simultaneously, increased retail investor engagement with digital investment platforms indicates a growing trend among Vietnamese youth to leverage online resources for both investment knowledge and practical financial management.

  • Workshops focusing on open-source funding present a compelling avenue for young developers, providing them with financial skills that align with their tech-oriented passions. Combined with programs aimed at enhancing tech skills and local community innovation, these workshops contribute to a new generation of economically empowered individuals. Overall, the current landscape highlights a promising synergy between financial acumen and technological skills, driving the financial evolution that engages Vietnam's youth.

2. Vietnam’s Digital Finance Revolution

  • 2-1. Growth of digital payments across Asia and Vietnam

  • As of May 2025, Vietnam's digital payment ecosystem is thriving, characterized by a strong desire for cashless transactions among its tech-savvy population. Recent insights indicate that Vietnam has processed nearly 17 billion cashless transactions, signaling a shift towards digital financial solutions. Supported by a young demographic and high smartphone penetration, the use of digital wallets such as MoMo and ZaloPay is becoming increasingly popular, particularly in urban areas like Ho Chi Minh City and Hanoi. The government’s National Digital Transformation Program aims to normalize cashless payments by 2030, ensuring more access to digital financial services, especially in rural communities.

  • The rise of digital payments across Asia has been bolstered by rapid technological advancements, the increasing accessibility of smartphones, and a shift in consumer behavior towards more efficient and secure modes of transaction. By the first quarter of 2025, over 2.9 billion individuals across Asia were using mobile-based financial solutions, and the region accounted for more than 60% of the global digital wallet user base. This significant engagement illustrates the crucial role of digital wallets not only in enhancing everyday transactions but also in promoting broader economic participation and financial inclusion.

  • 2-2. AI-driven transformation in banking services

  • The integration of artificial intelligence (AI) in Vietnam's banking and finance sector has intensified recently, leading to transformative changes in service delivery and operational efficiency. By early 2025, advanced AI solutions have already been implemented across banks, improving customer experiences and streamlining various processes including risk management and data analytics. For instance, biometric authentication technologies are now widely used, allowing for enhanced security in transactions. These innovations are crucial as they also help combat financial fraud and ensure regulatory compliance.

  • The Vietnam Banks’ Association highlighted that the utilization of AI is essential for enhancing competitiveness in the financial sector, with many institutions reporting up to 95% of transactions processed digitally. Leaders in the industry point out that while the journey may involve incremental investments, the focus on small-scale projects across multiple departments fosters rapid learning and adapts to change effectively. This strategic approach is proving to be a vital moving force as banks seek to navigate the pressures of a rapidly digitalizing financial landscape.

  • 2-3. Rising retail engagement on digital investment platforms

  • Engagement in digital investment platforms has witnessed a significant increase among Vietnamese retail investors. A recent survey revealed that 77% of retail investors globally are now utilizing at least some digital platforms for their investment activities, with notable growth in Vietnam driven by the young population's affinity for technology. Across various demographics, the importance of hybrid financial advice models is becoming more apparent, as investors value a mix of professional guidance along with digital tools to enhance their financial literacy and confidence in investment decisions.

  • Moreover, the shift towards digital investment tools is not limited to younger generations; individuals of all ages are increasingly seeking online sources to enhance their investment knowledge. As highlighted by research from Amundi, leveraging professional advice—whether delivered in person or digitally—significantly improves investors' chances of developing structured financial plans. Given that many investors lack a formal plan, enhancing digital engagement through educational resources and community support systems will further empower Vietnamese retail investors in their financial journeys.

3. The Rise of Soft Saving Among Gen Z

  • 3-1. Emergence of Soft Saving as the new FIRE movement

  • The concept of Soft Saving is gaining traction among Gen Z, particularly as a response to the traditional FIRE (Financial Independence, Retire Early) movement. Unlike their predecessors, Gen Z is focusing less on the extreme saving habits that often characterize FIRE advocates. A recent study indicated that approximately 75% of Gen Z respondents prioritize quality of life in the present over accumulating wealth for an uncertain future. This shift can be attributed to the economic realities faced by young adults today, including high inflation, student debt, and a housing crisis that takes a substantial portion of monthly income. Instead of strictly adhering to the rigid saving models of past generations, Gen Z is adopting a more balanced approach that allows for personal enjoyment while still acknowledging the need for savings.

  • 3-2. How Gen Z redefines financial independence

  • Financial independence for Gen Z does not resemble the traditional narrative of saving excessively to retire early. Rather, this generation seeks to attain financial stability that enables them to enjoy life’s experiences now. Surveys reveal that only around 20% of Gen Z is proactively saving for retirement. Instead, their focus is on building emergency funds and saving for personal and immediate goals, such as travel or self-care activities. Many young individuals express a desire to invest in experiences that enrich their mental and emotional wellbeing, viewing money more as a tool for enhancing their current life rather than just a long-term nest egg. This redefinition of financial independence emphasizes living for today and encourages a more holistic understanding of prosperity, where mental health and happiness are prioritized alongside financial stability.

  • 3-3. Youth as valuable economic assets through skill mastery

  • Young people today recognize that their value extends beyond traditional employment; they view themselves as valuable assets capable of driving economic innovation. The narrative presented in recent publications highlights how developing tech skills and embracing a growth mindset will allow them to transition from being mere job seekers to innovators and leaders in their fields. With the right training, Gen Z can leverage tools and technology to create solutions to real-world problems. As this generation becomes more proactive about skill mastery, they are reshaping how society perceives their worth. Programs encouraging tech skill development, entrepreneurial thinking, and community-driven projects are becoming increasingly popular, which helps position youth not just as economic participants but as impactful contributors to their communities and the economy at large.

4. Tech-Driven Financial Sustainability

  • 4-1. Open source funding workshops for developer projects

  • Open source funding workshops have emerged as an innovative solution aimed at empowering developers while promoting financial sustainability in the tech community. These workshops are designed to equip participants with essential business knowledge that complements their technical skills. By leveraging crowdfunding strategies, sponsorship acquisition techniques, and grant writing skills, developers learn to navigate the financial landscape while aligning with the ethos of open source collaboration. The focus is on providing developers not only with the tools for project maintenance but also with a methodological approach to raising funds and ensuring long-term viability of their projects.

  • Workshops typically cover crucial aspects such as budget management, building relationships with community members for fundraising, and identifying potential sponsors or grants. The curriculum is tailored to enhance financial literacy and emphasize different funding opportunities—ranging from micro-donations to substantial corporate sponsorships. Moreover, mentors and industry experts frequently participate in these sessions, providing invaluable insights and enhancing connections within the open source community.

  • 4-2. Empowering youth through tech skills and community innovation

  • In today’s dynamic financial landscape, youth empowerment through technological proficiency is critical. Programs that focus on teaching tech skills enable young individuals to shift from being passive consumers to active creators and innovators in their communities. The focus is on instilling a mindset where youth realize their intrinsic value as assets, capable of generating solutions to real-world problems through technology. By leveraging their competencies and creativity, young individuals are becoming catalysts of change, ensuring they can participate meaningfully in their economies.

  • The rise of coding boot camps, digital literacy programs, and entrepreneurship incubators illustrate the shift towards fostering a tech-savvy youth workforce. These initiatives promote skill mastery, enabling participants to create meaningful solutions, develop startups, and engage in viable economic activities. As participation in tech-driven opportunities expands, the potential for sustainable financial independence among young people also grows significantly. The success stories of young innovators, like the creation of platforms that address local challenges, underline the importance of combining technical skills with a purpose-driven mindset to achieve not only personal growth but also community improvement.

  • 4-3. Bridging passion with financial viability

  • Workshops and programs aimed at bridging the gap between passion projects and financial sustainability have gained traction. These initiatives guide young developers in recognizing how their personal interests can transform into viable income-generating ventures. The model encourages participants to identify their passions, explore market needs, and marry these insights with technological solutions.

  • By fostering connections and community support, these programs enable participants to engage effectively with stakeholders and adapt their projects to meet market demands. The use of platforms that provide avenues for funding and sponsorship plays a crucial role in this process. For instance, successful workshops have demonstrated how young innovators can approach potential investors or crowd-funding mechanisms, reinforcing the idea that financial sustainability is achievable when passion is coupled with strategic planning. Not only does this approach identify viable paths to turning ideas into financially sustainable projects, but it also helps nurture a sense of community, collaboration, and mutual support among participants.

5. Adapting Financial-Planning Best Practices

  • 5-1. Core budgeting and emergency-fund strategies

  • In the rapidly evolving financial landscape, especially among Vietnam's Gen Z, developing solid budgeting and emergency fund strategies is crucial. The first step in creating a successful financial plan is to implement a realistic budget that aligns with personal income and expenses. This can involve tracking daily expenditures, distinguishing between wants and needs, and configuring a spending plan that accommodates saving while still allowing for flexibility in discretionary spending. Gen Z's affinity for technology positions them well to utilize various budgeting apps that provide real-time tracking and help in analyzing spending habits. Furthermore, establishing an emergency fund is essential. Financial experts typically recommend that individuals set aside three to six months' worth of living expenses. This fund serves as a financial buffer during unexpected situations, such as job loss or urgent medical expenses, allowing young adults to maintain their financial stability without resorting to debt. In Vietnam, increasingly popular platforms provide low-barrier savings options that are well-suited for incorporating this essential safety net into a young person's financial framework.

  • 5-2. Applying non-profit financial planning principles to personal finance

  • The principles derived from non-profit financial planning can significantly enhance personal finance strategies for Vietnam's youth. Non-profits prioritize mission alignment and effective resource management, values that can be beneficial for individuals aspiring to financial independence. For instance, understanding one’s financial model involves analyzing personal income sources—such as salaries, allowances, or side-gigs—and allocating funds to both short-term expenses and long-term savings goals. Using these principles, individuals can create a detailed financial plan that includes not only a budget but a comprehensive analysis of expected income and expenses over time, mirroring the careful financial oversight non-profits must maintain. This ensures that their financial plan is adaptable to changing circumstances, ultimately promoting resilience.

  • 5-3. Setting goals and tracking progress

  • Setting clear financial goals and regularly tracking progress is vital for establishing a successful financial future. Vietnam's Gen Z is encouraged to define both short-term and long-term goals, such as saving for a car, funding education, or future investments in real estate. Utilizing the SMART criteria—Specific, Measurable, Achievable, Relevant, and Time-bound—can guide the goal-setting process and provide clarity. For effective monitoring, adopting various tracking tools is recommended. Many apps and online platforms now cater to individuals by offering dashboards that reflect progress towards their financial objectives. Regular reviews of one’s financial status help in identifying areas requiring adjustment, ensuring that individuals remain on track to achieve their goals. Moreover, cultivating this habit of goal setting and progress tracking fosters a proactive attitude towards financial management, empowering Gen Z to take charge of their financial destinies.

6. Navigating Emerging Service Platforms

  • 6-1. Overview of fintech tools and digital investment apps

  • As of May 2025, the fintech landscape is rapidly evolving, particularly in emerging markets like Vietnam. The introduction of various fintech tools and digital investment applications is transforming how young adults engage with finance. Numerous platforms enable users to manage their finances seamlessly, from budgeting tools that use AI algorithms to analyze spending habits, to investment apps that provide user-friendly interfaces for trading stocks and cryptocurrencies. These innovations are particularly appealing to Gen Z, who are more inclined to embrace technology-driven solutions.

  • For instance, digital wallets have surged in popularity, allowing users to conduct transactions effortlessly while earning rewards. Investing platforms also commonly offer educational resources to help novice investors develop their understanding of markets. This dual focus on access and education ensures that users can make informed financial decisions in a way that was not possible before.

  • 6-2. Balancing professional advice with self-service platforms

  • While self-service platforms are gaining traction, research highlights the essential role of professional financial advice. A recent study from Amundi noted that although many investors turn to digital channels for information, upfront advice from qualified professionals remains vital, especially for long-term financial planning. Users often gravitate towards a hybrid approach, where they can utilize digital tools for everyday transactions and investments while relying on human expertise for major financial decisions.

  • This hybrid model has shown to significantly enhance user confidence in achieving their financial goals. More than half of investors who seek professional guidance report feeling more secure about their financial future. Platforms that offer integrated services combining algorithm-driven insights with access to professional advisors are set to gain popularity, catering to both the needs for convenience and the demand for trust.

  • 6-3. Key considerations when selecting financial-planning services

  • When exploring financial planning services, users should consider several critical factors to ensure they choose the right platform for their needs. Firstly, the level of personalization offered by the service can greatly influence its effectiveness — a one-size-fits-all approach may not meet individual financial circumstances adequately. Users should look for platforms that provide tailored recommendations based on their specific financial situations.

  • Secondly, the credibility and regulation of the platform is paramount. Financial service providers should be transparent about their regulatory status to ensure user protection. Furthermore, understanding the fee structures and any hidden costs associated with platform usage is crucial to make informed financial commitments.

  • Lastly, the integration capabilities of these platforms with other financial tools, such as banking services or investment accounts, can streamline decision-making and enhance overall financial management. As the fintech ecosystem continues to grow in complexity, users who remain educated about their options will be better positioned to navigate and utilize these emerging services effectively.

Conclusion

  • In conclusion, the young population of Vietnam is effectively harnessing a unique intersection of progressive mindsets and fast-paced technological advancements to shape their financial futures. The adoption of the Soft Saving philosophy signifies a crucial turning point, allowing Gen Z to pursue financial independence through a flexible, health-conscious lens. Concurrently, the swift expansion of digital payment platforms and AI-driven banking has provided unprecedented access to innovative tools that facilitate proactive planning and smart investment strategies.

  • The ongoing success of open-source funding workshops exemplifies how community-driven initiatives can foster enduring project sustainability. By integrating structured budgeting techniques—derived from the principles of non-profit financial management—with the capabilities of emerging fintech tools, young Vietnamese individuals are cultivating resilient financial futures that align with their long-term aspirations.

  • To further enrich this developmental trajectory, it is imperative for policymakers, educators, and financial service providers to prioritize comprehensive digital financial literacy programs. Support for community-funded initiatives will enhance the ecosystem of accessible, user-friendly financial tools tailored to youth needs. Anticipating the future, continued advancements in AI banking, coupled with broader fintech adoption, promise to further empower Vietnam's next generation, enabling them to make impactful personal and societal contributions as they navigate their financial journeys.

Glossary

  • Soft Saving: A financial philosophy embraced by Vietnam's Gen Z that emphasizes balanced financial management, prioritizing current quality of life while recognizing the importance of saving. Unlike traditional models focused on extreme saving for early retirement, Soft Saving promotes enjoying life now while still building savings for the future.
  • Gen Z: The demographic cohort born approximately from the mid-1990s to the early 2010s, known for their comfort with technology and digital engagement. In Vietnam, Gen Z is significantly reshaping financial practices through adoption of new technologies and innovative financial philosophies.
  • Digital Payments: Financial transactions conducted through electronic means, such as mobile wallets and online banking. As of May 2025, Vietnam has witnessed significant growth in digital payments, with nearly 17 billion cashless transactions recorded, demonstrating a shift towards advanced financial technologies.
  • AI Banking: The integration of artificial intelligence technologies within banking services that enhances customer experience, improves service delivery, and streamlines operations. By early 2025, the majority of banking transactions in Vietnam are processed digitally, showcasing the role of AI in transforming the financial sector.
  • Financial Planning: The process of setting financial goals, identifying resources, and developing a strategy to achieve those objectives. The report highlights the evolution of financial planning tailored to Vietnam’s Gen Z, focusing on budgeting, savings, and investment strategies that are relevant today.
  • Open Source Funding: A funding model that allows developers and creators to access financial resources through community contributions and crowdfunding. Workshops focusing on open source funding are equipping Vietnamese youth with essential financial skills necessary for project sustainability.
  • Fintech: Short for financial technology, fintech refers to innovative technology designed to enhance, innovate, and automate financial services. In Vietnam, fintech represents a rapidly growing market as digital solutions become increasingly integral to financial management for Gen Z.
  • Digital Wallets: Mobile applications or online services that allow users to store payment information and make electronic transactions. Their popularity has surged in Vietnam, with platforms like MoMo and ZaloPay enabling millions of cashless transactions.
  • Emergency Fund: A specific savings reserve set aside to cover unexpected expenses, typically recommended to be three to six months' worth of living expenses. Establishing an emergency fund is emphasized for Gen Z to maintain financial stability in times of uncertainty.
  • SMART Criteria: An acronym for Specific, Measurable, Achievable, Relevant, and Time-bound used to set effective and clear goals. This framework assists Vietnam's Gen Z in developing structured financial plans by outlining actionable steps towards their objectives.
  • Hybrid Financial Advice: A combination of professional guidance from financial advisors and self-service options provided by digital platforms. As users seek greater control over their finances, the hybrid model is becoming more prevalent, enhancing users’ confidence in achieving their financial goals.
  • Budgeting Apps: Mobile applications designed to help users track income, expenses, and saving goals in real-time. These tools have gained popularity among Vietnam's Gen Z, facilitating better financial management through technology.

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