Three companies dominate consumer lending market in Vietnam

Three companies are dominating the consumer lending market in Vietnam, with FE Credit, HD Saison and Home Credit firmly on top.

Three companies dominate consumer lending market in Vietnam
Vietnam’s consumer credit market had significiant potential for development. — Photo giadinh.net.vn

According to the State Bank of Vietnam (SBV) 16 finance companies are licensed to provide consumer lending with their total charter capital worth more than VND22 trillion (US$948 million) as of the end of 2020.

Those with the largest charter capital include FE Credit (VND7.328 trillion), SBIC Finance (VND2.532 trillion), EVN FC (VND2.5 trillion), Home Credit (VND2.05 trillion) and HD Saison (VND1.4 trillion).

A report from Fiingroup on the domestic consumer lending market showed that consumer credit now accounts for 20.5 per cent of the total outstanding loans in the economy, 2.5 times higher than 2012, with an average annual growth rate of 20 per cent.

FE Credit, HD Saison and Home Credit altogether account for 80 per cent of the consumer lending market. FE Credit alone has a share of more than 52 per cent, much bigger than Home Credit in second with a share of 17 per cent and HD Saison with a share of 11 per cent.

A report from VPBank, which owns FE Credit, showed the company holds a market share of more than 55 per cent. In 2020, FE Credit provided new loans worth VND63 trillion, about VND10 trillion lower than 2019 but still the company with the highest value of new loans in the market last year.

The total outstanding loans of FE Credit were estimated at around VND66 trillion as of the end of 2020, a slight increase from 2019. The bad debts were estimated at about VND4.3 trillion.

With total assets worth more than VND16.1 trillion by the end of last year, HD Saison’s outstanding loans were estimated at VND14.23 trillion, up 13 per cent against the previous year.

 

Home Credit’s outstanding loans were estimated at more than VND20 trillion.

Despite higher risks than bank loans, the consumer lending market is still attractive to investors thanks to its profitability.

According to SBV statistics, finance companies have the highest profitability among credit institutions in Vietnam.

The latest updates available in October showed a return on asset (ROA) and return on revenue (ROE) of finance companies were respectively 2.19 per cent and 10.55 per cent, highest among credit institutions. The ROA of finance companies was even 2.8 times higher than commercial banks.

A number of banks have launched finance companies, such as VP Bank with FE Credit, HDBank with HD Saison, SHB with SHB Finance and MBBank with Mcredit.

Banking expert Can Van Luc said Vietnam’s consumer credit market had significant potential for development. Consumer loans are estimated to account for around 18-20 per cent of the total outstanding loans in the economy.  VNS

Consumer finance companies remain attractive acquisition targets

Consumer finance companies remain attractive acquisition targets

Vietnam currently has 16 finance companies, including six fully foreign owned ones.  

 
 

Other News

.
Local authorities urged to set green corridor for domestic flights
Local authorities urged to set green corridor for domestic flights
FEATUREicon  13/10/2021 

The first commercial flights have been provided in the new normal period. However, the application of different regulations in different localities have caused problems.

Tax cut proposed to stabilise domestic petrol price
Tax cut proposed to stabilise domestic petrol price
BUSINESSicon  13/10/2021 

Calls have been made for tax cuts to stabilise domestic fuel prices as global oil prices see continual increases.

SOE equitisation slow this year due to COVID-19
SOE equitisation slow this year due to COVID-19
BUSINESSicon  13/10/2021 

The outbreak of COVID-19 in many localities has delayed the equitisation of State-owned enterprises (SOEs).

Intel, Samsung eye fully running HCM City plants in late November
Intel, Samsung eye fully running HCM City plants in late November
BUSINESSicon  12/10/2021 

Intel Corp. and Samsung Electronics Co. are both aiming to resume full operations of their HCM City plants by the end of November.

FDI inflow into Vietnam still on upturn trend
FDI inflow into Vietnam still on upturn trend
BUSINESSicon  12/10/2021 

Despite impacts of the COVID-19 pandemic, the inflow of foreign direct investment (FDI) into Vietnam still rose 4.4 percent year on year in the first nine months of 2021 to 22.15 billion USD.

To have free trade zone, Hai Phong needs special mechanism
To have free trade zone, Hai Phong needs special mechanism
BUSINESSicon  12/10/2021 

Some National Assembly Deputies expressed their concerns about the establishment of a free trade zone (FTZ) in Hai Phong at a National Assembly Standing Committee session on October 11.

In new normal, businesses are afraid of ‘sub-licenses’
In new normal, businesses are afraid of ‘sub-licenses’
FEATUREicon  13/10/2021 

Most enterprises can now resume usual operations as Vietnam has entered the new normal period. However, their production and business have been obstructed by ‘sub-licenses’, or new regulations set by agencies.

Two thirds of HCM City industries reopen
Two thirds of HCM City industries reopen
BUSINESSicon  12/10/2021 

The number of enterprises reopening at export processing zones and industrial parks in HCM City has reached 66.8 per cent, while at the Saigon Hi-Tech Park the rate is 74.3 per cent.

Government signs decision on special investment incentives
Government signs decision on special investment incentives
BUSINESSicon  12/10/2021 

Standing Deputy Prime Minister Pham Binh Minh has just signed Decision No 29/2021/QĐ-TTg of the Prime Minister on special investment incentives.

Sugar stocks expected to benefit from trade remedies
Sugar stocks expected to benefit from trade remedies
BUSINESSicon  12/10/2021 

Sugar producers expect the 2021-2022 crop, which is starting from July 1, will be more prosperous. 

Vietnamese-born duo make world’s first sneakers from residual coffee grounds
Vietnamese-born duo make world’s first sneakers from residual coffee grounds
BUSINESSicon  12/10/2021 

More and more startups nowadays are committed themselves to finding innovative solutions to environmental problems. 

VIETNAM BUSINESS NEWS OCTOBER 12
VIETNAM BUSINESS NEWS OCTOBER 12
BUSINESSicon  12/10/2021 

Detailed policies needed to help firms get loans

Vietnam wood industry targets US$15 billion export revenue
Vietnam wood industry targets US$15 billion export revenue
BUSINESSicon  12/10/2021 

This year Vietnam targets earning $14.5 billion of export revenue from wood and forest products.

THACO completes purchase of RoK’s Emart hypermarket in Vietnam
THACO completes purchase of RoK’s Emart hypermarket in Vietnam
BUSINESSicon  12/10/2021 

THACO said it has completed the acquisition of hypermarket business in Vietnam of Emart Inc of the Republic of Korea

Vietnam's economic growth to recover from Q4: Economist
Vietnam's economic growth to recover from Q4: Economist
BUSINESSicon  11/10/2021 

The Vietnamese economy is likely to gradually recover from the fourth quarter of 2021 and escape the minus growth seen in the third quarter.

Vietnam to pilot Mobile Money service for two years
Vietnam to pilot Mobile Money service for two years
BUSINESSicon  11/10/2021 

Vietnam will pilot Mobile Money service across the country for two years before officially launching it, according to Deputy Governor of the State Bank Dao Minh Tu.

Real estate market warms up as pandemic controlled
Real estate market warms up as pandemic controlled
BUSINESSicon  12/10/2021 

The reopening of the economy has begun with the principle ‘reopening the doors anywhere it’s safe’.

Rapid vaccination and targeted policies key to Vietnam’s endemic growth
Rapid vaccination and targeted policies key to Vietnam’s endemic growth
BUSINESSicon  11/10/2021 

As the world is transitioning from pandemic to endemic, Vietnam needs to ensure its vaccination progress and greater adeptness at targeting control measures and support policies to follow suit.

Wellness tourism a gold mine for Vietnam to exploit
Wellness tourism a gold mine for Vietnam to exploit
FEATUREicon  12/10/2021 

About 350,000 foreigners came to Vietnam in 2018 to obtain medical treatment, bringing $2 billion in turnover to the country, not to mention the money travelers spent on healthcare services during their trips.

VIETNAM BUSINESS NEWS OCTOBER 11
VIETNAM BUSINESS NEWS OCTOBER 11
BUSINESSicon  11/10/2021 

Con Dao airport to be upgraded to serve larger aircraft

 
 
 
Leave your comment on an article

OR QUICK LOGIN