By the end of 2017, total outstanding consumer loans reached over US$5 billion. The consumer finance market, however, remains huge potential for development.

Vietnam's consumer finance market is witnessing new players, promising a fierce competition for customers, VnExpress reported.  

On October 1, EVN Finance Company announced its foray into the market with the launch of a brand called Easy Credit. The company will target customers with an monthly income of at least VND4.5 million (US$200) and provide loans from VND10 - 90 million (US$430 - US$3,875) for up to 60 months. 

In August, SHB Finance launched its new office in Hanoi and entered the consumer finance market with various loan options. 

Do Quang Hien, board chairman of Saigon - Hanoi Commercial Bank (SHB), stated the presence of SHB Finance marked a new development stage of Vietnam's consumer finance market. 

Recently Cement Finance Company (CFC) has been renamed VietCredit Finance Company. Meanwhile, Southeast Asia Commercial Bank (SeaBank) acquired Post and Telecommunication Finance (PTF) from Vietnam Posts and Telecommunications Group (VNPT). 

Banks such as Bank for Foreign Trade of Vietnam (Vietcombank), Asia Commercial Bank (ACB) or Orient Commercial Bank (OCB) have expressed interest in joining the market. 

Statistics showed that more and more Vietnamese customers are in favor of borrowing money for private spending. By the end of 2017, the total outstanding consumer loans reached over US$5 billion. The market, however, stills has huge room for development, which is one of the main reasons leading to a growing number of finance companies in a short period of time. 

MCredit, a joint-venture between Military Bank (MBBank) and Japan's Shinsei Bank, reported positive business performance after its launch one year ago with total outstanding loan of VND1.55 trillion (US$66.73 million). 

In 2017, FE Credit posted revenue and profit grew by 45% and 55% year-on-year, while Home Credit's revenue saw an increase by 50% compared to that of in 2016. Additionally, HD Saison reported its outstanding loans of VND9.5 trillion (US$409.1 million), up 17.3% year-on-year. 

Kalidas Ghose, CEO of FE Credit, stated the growth rate of the market is still small compared to its potential, for which consumer finance is a global trend. According to Ghose, consumer finance currently accounts for 11.4% of total outstanding loans in Vietnam, significantly lower than the average rate of 40 - 50% in developed countries. 

Hanoitimes