Vietnam Consumer Finance 2022: Time to change the game

June 16 2022



FiinResearch - a brand of FiinGroup is pleased to introduce Vietnam Consumer Finance Report 2022, the latest and most comprehensive issue on the Vietnam Consumer Finance sector. With the theme "Time to change the game", this report presents a broad range of topics, both sector-specific and crosscutting market issues.

FiinResearch stated that 2021 was an eventful year in Vietnam's consumer finance (CF) market. After some glimmers of recovery by early 2021, the sector underwent around 6 months of disruption due to the COVID-19’s fourth wave by Mid-April. However, the growth momentum rallied throughout the last quarter as pandemic pressures eased. This challenging time is also a good game changer that saw the rise of late comers threatening the market share of the elders. While concern about FinCos’ asset quality is still there, 2022 is expected to be a good year for the CF market, characterized by post-pandemic robust growth, diversification of product portfolio and distribution channels associated with digitalization, M&A activities led by foreign investors, and heightened competition forces from alternative lenders such as pawnshops, fintech players.

According to FiinResearch, Vietnam's consumer finance market started to revive from the pandemic stress. The growth momentum is expected to carry into 2022 given the recovery of consumer confidence and spending demand.​

FinCos’ asset quality in 2021 was exacerbated as non-performing loans built up largely in response to the crisis. Despite FinCos’ efforts in controlling disbursements to mitigate risk, the lasting impact remains to be seen given the expiration of restructuring policies in the coming time.

The steep decline in the sector’s NIM is in line with heightened uncertainty under the COVID-19 resurgence. Accordingly, FinCos’ NIM dropped due to slow credit growth across all segments and the implementation of interest relief schemes at Circulars 01, 03, and 14.

In the report, FiinResearch also figured out some key development trends for Vietnam's consumer finance market in 2022:

  • FinCos are increasingly tapping into the non-interest income segment, especially bancassurance to enhance profitability while reducing reliance on the conventional business of granting unsecured loans.
  • FinCos are facing heightened competition from pawnshop chains with the aggressive expansion of the biggest player F88 to the cash loan landscape under collaboration with retail partners.
  • Dealmaking in the CF sector is certainly heating up, fueled by buoyant foreign capital under both direct acquisition and indirect acquisition via regional parent entity.

Explore more details and insights of Vietnam Consumer Finance Report 2022 HERE.

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