VietNamNet Bridge - The size of the consumer market has increased rapidly, attracting more foreign capital.

Banks in the last three years have rushed to provide retail banking services, encouraged by the increased spending of middle-class income earners. Fifty-three percent of the 95 million population are of working age.

VietNamNet Bridge - Four commercial banks have taken over finance companies, and other banks are consulting with their shareholders about buying such firms to expand their consumer lending.

VietNamNet Bridge - Commercial banks are planning to take over finance companies to implement plans to develop consumer credit.

 VietNamNet Bridge – Commercial banks will be forced to stop providing consumer loans if they don’t have finance companies of their own, under a draft document being compiled by the State Bank of Vietnam.

 VietNamNet Bridge – “Hybrid credit”, which shares characteristics of both bank credit and black-market credit, is becoming more common in Vietnam.

 VietNamNet Bridge – Analysts predict a new wave of commercial banks taking over finance companies following a new government decree.

 VietNamNet Bridge – Finance companies are flexing their muscles as they prepare to go head-to-head with commercial banks for a share of the profitable consumer-loan market.

 VietNamNet Bridge – Only one commercial bank, SHB, has officially announced its plan to acquire a finance company this year. However, analysts say this is not an unusual phenomenon.

A lot of people have fallen into a trap set by finance companies. Promising simple administrative procedures, but the companies overcharge borrowers with exorbitant interest rtes.

 VietNamNet Bridge – Struggling against weak efficiency and a heavy load bad debts, Vietnamese finance companies are finding ways to restructure.