The first half of 2024 marked the start of a new growth cycle for Vietnam’s consumer finance sector, with Banks and FinCos adapting to evolving market dynamics and regulatory requirements.

While the broader macroeconomic environment is improving, recovery in spending power among low- and middle-income consumers—FinCos' key target segment—has been slower. These groups have been more vulnerable to economic shocks, rising living costs, accumulated debt, and stricter lending standards, leading to modest credit expansion and profits amid concerns over asset quality among FinCos.

As the business environment continues to stabilize, the second half of 2024 is expected to bring further opportunities, particularly in labor-intensive sectors like manufacturing and services. However, challenges such as rising competition, higher delinquency rates, and the impact of Typhoon Yagi on certain regions may affect the speed and sustainability of recovery for both Banks and FinCos.

Staying ahead of trends in consumer lending is crucial as the market has entered a new growth cycle after a prolonged adjustment period. FiinGroup’s latest consumer finance report provides readers with up-to-date sector developments and insights on individual players, highlighting future growth opportunities as FinCos are poised for a resurgence phase.

This report addresses the following questions:

• How did the consumer finance sector perform regarding credit growth in the first half of 2024, and what is the second half of 2024 and 2025 ahead?
• What is the market size of Vietnam's consumer finance sector, specifically among mainstream credit providers (i.e., credit institutions) and consumer finance companies (FinCos)?
• How has the competitive landscape evolved over the past five years, and what can be expected moving forward?
• How has the Transition in FinCos’ product mix in the post-pandemic period, highlighting trends expected from the first half of 2024 onwards?
• What are current consumer sentiments and perceptions regarding consumer finance and FinCos?
• How have the financial performance of major FinCos changed over the past year, and what insights can be drawn from the market?
• What emerging challenges and opportunities exist for incumbents and foreign investors?
• What are the latest key market and development trends to monitor?
• What are the recent regulatory developments and their implications?