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Vietnam Consumer Finance Market Report 2019

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After a period of strong loan book growth during 2013-2017, Vietnam has witnessed a slowdown - the national loan book grew by 14% in 2018 compared to 18% in 2017. Concerns about aggressive lending practices, and the possible risk in the real estate and non-production sectors have resulted in a tightening of regulations by the State Bank of Vietnam (SBV). Additionally, the focus was on resolving the legacy bad debt with the resulting non-performing loans ratio (NPL) at only 1.89% by YE2018. Considering these events, the SBV also set a modest target of 14% YoY credit growth for 2019.

The strongest driver for credit growth, the consumer finance market, has been maturing after several years of exponential growth. In 2018, CF increased its contribution to the national loan book, at 19.7%, compared to 16.7% in 2017. At the same time, although the market has been growing at 59% YoY for the last five years, in 2018, the overall growth registered at 30.4%. The slowdown is attributed to the market’s development, growing from a larger base, the increasing exposure to real estate loans, as well as the saturation of some of CF key products such as installment loans for home appliances and consumer electronics.

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Vietnam Consumer Finance Market Report 2019

  1. 1. Financial Information | Business Information | Market Research 1
  2. 2. Abbreviation 2Financial Information | Business Information | Market Research NO . WORD STANDS FOR 1 CAGR Compounded annual growth rate 2 CF Consumer finance 3 CIR Cost to income ratio 4 CL Cash loans 5 DSA Direct sales agents 6 GDP Gross domestic product 7 ICT Information and communications technology 8 IPS Intermediary payment services 9 NFSC National finance supervisory commission 10 NIM Net interest margin 11 NPL Non-performing loan 12 NPM Net profit margin 13 P2P Peer to peer 14 POS Point of sales 15 POSA Point of sales activated cards 16 ROA Return on assets 17 ROE Return on equity 18 SBV State Bank of Vietnam 19 YoY Year over year
  3. 3. PART CONTENT PAGE PART CONTENT PAGE Executive Summary 4 5 Major Regulatory and Policy Changes 1 Sector Overview 5.1 Draft Revised Circular 43 40 1.1 Market Size and Growth 6 5.2 Financial Inclusion Policies 42 1.2 Market Segmentation 8 6 Key Trends of Vietnam CF Market 2 Competition Landscape 6.1 Product Trends – Emerging Models 44 2.1 Market share of CF companies 12 6.2 Technology Trends – Fintech 47 2.2 Marketing and Sales Network 15 6.3 Structural Trends - M&A 50 3 Product Demand Analysis Appendices 3.1 Overview of consumer finance products 17 A.1 Market Structure 52 3.2 Housing loans 22 A.2 FinCos’ Profiles 54 3.3 Vehicles loan 24 A.3 Selected Alternative Lenders’ Profiles 62 3.4 Cash loan 28 A.4 Regulations Framework 65 3.5 Credit card 30 A.5 CF Players and Popular Products 67 3.6 Home appliances and consumer electronics 33 A.6 Major Player Groups in CF Business 69 4 Financial Benchmarking 36 A.7 FinCos – Key Financial Data 2018 71 A.8 Vietnam Retail Banking – Key Figures 73 3Financial Information | Business Information | Market Research TABLE OF CONTENTS
  4. 4. Executive Summary 4Financial Information | Business Information | Market Research
  5. 5. Section 1: Sector Overview 5Financial Information | Business Information | Market Research 1.1 Market Size and Growth 1.2 Market Segmentation Contents
  6. 6. 2014 2015 2016 2017 2018 Section 1: Sector Overview 1.1 Market Size and Growth Consumer Finance in Vietnam has been on a strong growth trajectory, now accounting for xx% of National Loan Book with room for further growth Figure 2: Consumer Loan/GDP in Asian countries, 2017Figure 1: Market Size (VNDbn) of total CF market (banks & FinCos) Source: FiinGroup. Data covering retail banks and licensed FinCos As a % of National Loan Book 0% 20% 40% 60% 80% 100% Vietnam Thailand Philippines Malaysia Indonesia Currently indebted No debt Source: FiinGroup from Financial Times Confidential Research Survey – 2Q2018 6Financial Information | Business Information | Market Research
  7. 7. Section 1: Sector Overview 7Financial Information | Business Information | Market Research 1.1 Market Size and Growth 1.2 Market Segmentation Contents
  8. 8. The CF Market is largely composed of Retail banks and FinCos as major players, with the banks accounting for xx% of the total market and trending upwards 8Financial Information | Business Information | Market Research Figure 3: Loanbook of Banks vs. FinCos in Consumer Finance Source: FiinGroup from NFSC covering retail banks and licensed FinCos Section 1: Sector Overview 1.2 Market Segmentation
  9. 9. 2014 2015 2016 2017 2018 Retail Banks join the CF market as strong contenders, with advantages of existing customer database, widespread branch network, and robust risk management Figure 4: Market Size (VNDbn) of banks’ CF loans Source: FiinGroup from NFSC Products Top 5 Local Banks Top Foreign Banks Housing/ Mortgage Automobiles Credit Cards Table 1: Top Retail Banks in Main CF Product Categories Banks’ consumer credit portfolio mainly comprises of these three categories, which account for over 75% of the loan portfolio for individuals. 9* According to VIB’s Annual Report 2018Financial Information | Business Information | Market Research Section 1: Sector Overview 1.2 Market Segmentation
  10. 10. 2014 2015 2016 2017 2018 Finance companies saw slower growth in 2018 due to the market maturing, heightened competition and tightened supervision on consumer credit activities by the SBV Figure 5: Market Size (VNDbn) of FinCo’s loans Source: FiinGroup. Data covering licensed FinCos only Figure 6: Growth YoY (%) of FinCos vs. Banks Section 1: Sector Overview 1.2 Market Segmentation Source: FiinGroup. Data covering licensed FinCos only 2014 2015 2016 2017 2018 Banks' CF YoY Growth Finance companies' CF YoY Growth 10Financial Information | Business Information | Market Research
  11. 11. Section 2: Competition Dynamics 11Financial Information | Business Information | Market Research 2.1 Market share of CF companies 2.2 Marketing and Sales Network Contents
  12. 12. Source: FiinGroup Notes: 1. Others include FCCOM, Handico Finance, PTFinance (now SeaBank), TechcomFinance (now Lotte Card), and SBIC Finance. 2. In 2015, total market share included 15 FinCos with license, in 2016, total market share included 16 FinCos with license. These figures do not include the unlicensed and alternative lenders. Figure 7: Market Share by FinCos 2017 vs. 2018 Figure 8: Market Size by FinCos (VNDbn) 2018 2017 Competition intensified as top CF Companies yielded market share to newcomers, while inactive FinCos clean up bad assets to prepare for new investors and new business model Section 2: Competition Dynamics 2.1 Market share of CF companies FECredit HomeCredit HD Saison Prudential Finance Toyota Financial Services JACCS Mirae Asset Mcredit Vietcredit SHB Finance Easy Credit Others 2 2017 2018 12Financial Information | Business Information | Market Research
  13. 13. Mirae Assets and Mcredit came out strong for both near and medium-term, while FE Credit, Home Credit, HD Saison and JACCS had slowed growth after 30-40% growth for three years 0% 13Financial Information | Business Information | Market Research 120% 100% 80% 60% 40% 20% -50% 0% 50% 250% 300% Finance Company YoY Growth 2017-2018 3 Yr CAGR 2015-2018 FE Credit Home Credit HD Saison Prudential Finance Toyota Financial Services JACCS Mirae Asset Mcredit 100% 150% 200% YoY Growth 2017-2018 3YrCAGR2015-2018 Figure 9: Comparison in loan book growth of FinCos Source: FiinGroup estimated from NFSC Section 2: Competition Dynamics 2.1 Market share of CF companies Table 2: Loan book growth of selected FinCos
  14. 14. Section 2: Competition Dynamics 14Financial Information | Business Information | Market Research 2.1 Market share of CF companies 2.2 Marketing and Sales Network Contents
  15. 15. While POS is the most effective marketing channel for FinCos, they are no longer the focus of expansion for Home Credit and FE Credit Section 2: Competition Dynamics 2.2 Marketing and Sales Network POS Friends & relatives SMS Telesales DSA Newspaper FinCos'branches Social media Website Mobileapp FE Credit HD SaisonHome Credit 2015 2016 2017 2018 15Financial Information | Business Information | Market Research Figure 10: Selected FinCos’ POS network 2015-2018 Figure 11: Effectiveness of Marketing channels as surveyed Survey Question: Via which marketing channel did you learn about FinCos? N=350 Cities surveyed: Hanoi, HCMC, Danang Source: FiinGroup’s CF Consumer Survey 2019
  16. 16. Section 3: Product Demand Analysis 16Financial Information | Business Information | Market Research 3.1 Overview of consumer finance products 3.2 Housing loans 3.3 Vehicles loan 3.4 Cash loan 3.5 Credit card 3.6 Home appliances and consumer electronics Contents
  17. 17. Consumer Finance Products are evolving towards online platforms and integration with ecosystems to provide financing for consumers within these ecosystems 17Financial Information | Business Information | Market Research Figure 12 : Development of Consumer Finance Products Section 3: Product Demand Analysis 3.1. Overview of consumer finance products
  18. 18. 2017 2018 Home appliances/ consumer electronics 2017 2018 Cash loans & Other 2017 2018 Credit Cards 2017 2018 Housing/ Home Improvement Loans 2017 2018 Vehicles Loans (two and four wheelers) As the market moves forward, housing loans, cash loans, and credit card saw growth potential while POS products like home appliances/ consumer electronics showed saturation Figure 13: Market Segment by Products 2018 vs. 2017 (VNDbn) 18Financial Information | Business Information | Market Research Source: FiinGroup Section 3: Product Demand Analysis 3.1. Overview of consumer finance products
  19. 19. Both loan portfolios of banks and FinCos are expected to change in the near term as SBV tightens exposure to housing and cash loans, automobiles and motorbikes sales trend upward, and credit cards loans took up the growth momentum 19Financial Information | Business Information | Market Research Figure 14: Banks’ CF Loans by segment Source: FiinGroup 2018 2017 Figure 15: Finance Companies’ CF Loans by segment 2018 2017 Source: FiinGroup Section 3: Product Demand Analysis 3.1. Overview of consumer finance products
  20. 20. Among FinCos, Vehicle (mostly motorbikes) and Credit card loans underwent strong growth while traditional POS products faltered. Figure 16: CF Products by Portfolio Percentage Source: FiinGroup’s estimated from NFSC Figure 17: CF Products by YoY Growth Home Appliances & Consumer Electronics Vehicles Loans Credit Card Cash loans Section 3: Product Demand Analysis 3.1. Overview of consumer finance products 20Financial Information | Business Information | Market Research
  21. 21. Section 3: Product Demand Analysis 21Financial Information | Business Information | Market Research 3.1 Overview of consumer finance products 3.2 Housing loans 3.3 Vehicles loan 3.4 Cash loan 3.5 Credit card 3.6 Home appliances and consumer electronics Contents
  22. 22. Source: FiinGroup Note: Exchange rate used at YE2018: VND/USD= 23,245 2015 2016 2017 2018 % Home buyers % Developers BORROWED ON CONSUMER CREDIT 0 2014 2015 2016 Dư nợ mua và sửa chữa nhà ở (USDbn) % trên tổng dư nợ toàn ngành 0 10 20 40 30 2016 Dư nợ kinh doanh BĐS (USDbn) % trên tổng dư nợ toàn ngành Figure 18: Developers’ RE Loans (US$bn) Figure 20: Home Buyers’ RE Loans (US$bn) 40 30 20 10 Figure 19: Home buyers vs. Developers Section 3: Product Demand Analysis 3.2. Housing and Home Improvement Real estate loans as a total of developers and buyers loans account for over xx% ofthe national loan book, a steep increase from last year’s % 2014 2015 Developers’ RE Loans (US$bn) 2017 2018 % of National Loan Book Home Buyers’ RE Loans (US$bn) 2017 2018 % of National Loan Book 22Financial Information | Business Information | Market Research
  23. 23. 0% 20% Source: FiinGroup from Savills Vietnam 40% 60% 80% 100% Grade C Grade B Figure 22: Apartment Purchaser Profile 2014-2017 in HCMC Investors Occupiers Speculators Grade A 0% 20% 40% 60% 80% 100% Grade C Grade B Section 3: Product Demand Analysis 3.2. Housing and Home Improvement Market continues positive in near future due to favorable demographics, stable economic outlook, infrastructure investment and capital inflows; mid-end and affordable segments to lead. Figure 21: Apartment Purchaser Profile 2014-2017 in Hanoi Investors Occupiers Speculators Grade A 23Financial Information | Business Information | Market Research
  24. 24. Section 3: Product Demand Analysis 24Financial Information | Business Information | Market Research 3.1 Overview of consumer finance products 3.2 Housing loans 3.3 Vehicles loan 3.4 Cash loan 3.5 Credit card 3.6 Home appliances and consumer electronics Contents
  25. 25. Source: FiinGroup estimated from NFSC Note: including both automobile and motorbike loans Others JACCS HomeCredit HD Saison FE Credit Figure 23: Vehicles Loans (two-wheelers and four-wheelers) at FinCos, VNDbn Figure 24: Motorbike Loan Market Share by FinCo, 2017 vs 2018 2017 2018 Source: FiinGroup estimated from NFSC Note: since Toyota Financial Services Company operates solely in automobile loans, we have removed the company from comparison with other FinCos operating mainly in motorbike loans. 2017 2018 Vehicles Loans 2014 2015 2016 2017 2018 Sales (million) Growth rate (%) Source: Fiingroup from VAMM Figure 25: Motorbike annual sales (million units) and YoY Growth (%) 4 3 2 1 0 Section 3: Product Demand Analysis 3.3. Vehicles loans | Motorbikes As the market size for vehicles loans increased significantly for FinCos, FE Credit took over the largest market share from HD Saison with a small lead 25Financial Information | Business Information | Market Research
  26. 26. Scooter Motorcycle 26Financial Information | Business Information | Market Research 2018 2015 Source: FiinGroup collected Section 3: Product Demand Analysis 3.3. Vehicles loans | Motorbikes Companies looking for growth potential could look to both ends of the spectrum- high-end segments and used motorbike segments Figure 26: Scooter vs. gear motorbike sales 2015 vs 2018
  27. 27. 400,000 300,000 200,000 100,000 0 2014 2015 2016 2017 2018 Car sales volume Growth rate (%) Figure 27. New automobile sales volumes in Vietnam and YoY Growth Source: FiinGroup from VAMA Toyota Truong Hai (Thaco) VinaMazda Honda Ford 27Financial Information | Business Information | Market Research Figure 29. Market share of locally assembled vehicles in Vietnam, 2018 Source: FiinGroup from VAMA Figure 28. Driving factors for automobile sales growth Section 3: Product Demand Analysis 3.3. Vehicles loans | Automobile Automobile market shows recovery in new sales in 2018, driven by removal of tariffs, and the rise of Tier 2 cities with better infrastructure and strong purchasing power
  28. 28. Section 3: Product Demand Analysis 28Financial Information | Business Information | Market Research 3.1 Overview of consumer finance products 3.2 Housing loans 3.3 Vehicles loan 3.4 Cash loan 3.5 Credit card 3.6 Home appliances and consumer electronics Contents
  29. 29. Source: FiinGroup’s Estimates Figure 30: FinCos cash loan percentage and balance (VNDbn) 2018 FinCos Banks 2017 Source: FiinGroup’s Estimates Figure 31: CF cash loans banks vs. FinCos (VNDbn) 2017 2018 Cash loans Section 3: Product Demand Analysis 3.4. Cash loans Cash loans in total has been growing at a very fast pace with increased competition from retail banks, FinCos, and other lenders with SBV’s tightened policies 29Financial Information | Business Information | Market Research
  30. 30. Section 3: Product Demand Analysis 30Financial Information | Business Information | Market Research 3.1 Overview of consumer finance products 3.2 Housing loans 3.3 Vehicles loan 3.4 Cash loan 3.5 Credit card 3.6 Home appliances and consumer electronics Contents
  31. 31. 2018 FinCos Banks Source: FiinGroup estimated fromNFSC Figure 32: FinCos credit card loan percentage and balance (VNDbn) 2017 Source: FiinGroup estimated fromNFSC Figure 33: Credit card loans banks vs. FinCos (VNDbn) 2017 2018 Credit Card Source: FiinGroup estimated fromNFSC Figure 34: Market share of credit card loans by FinCos 70% 65% 60% 75% 80% 85% 100% 95% 90% 2017 2018 Vietcredit HomeCredit JACCS FE Credit Section 3: Product Demand Analysis 3.5. Credit card loans Credit card still a growth segment for FinCos despite banks’ traditional stronghold thanks to creative products and partnerships with ecosystems 31Financial Information | Business Information | Market Research
  32. 32. Source: FiinGroup estimated fromVNBA Figure 35: Number of credit cards issued (accumulated) Figure 36: Average usage value per credit card (payment+ cash advance) 2015 2016 2017 2018 Millions 747 762 1,130 880 2015 2016 2017 2018 US$/card Source: FiinGroup estimated fromVNBA 2017 32Financial Information | Business Information | Market Research POS M-POS QR Code ATM Source: FiinGroup estimated fromVNBA 2018 Figure 37: Number of card-accepting locations by type 2017 vs. 2018 Section 3: Product Demand Analysis 3.5. Credit card loans As consumer habit moves from cash to cashless payments, FinCos could look forward to unlocking the growth potential via partnerships with multi-million user online platforms
  33. 33. Section 3: Product Demand Analysis 33Financial Information | Business Information | Market Research 3.1 Overview of consumer finance products 3.2 Housing loans 3.3 Vehicles loan 3.4 Cash loan 3.5 Credit card 3.6 Home appliances and consumer electronics Contents
  34. 34. Source: FiinGroup’sestimates Figure 38: FinCos home appliances and consumer electronics percentage and balance (VNDbn) Source: FiinGroup Figure 39: Market shares of home appliances and consumer electronics loans by FinCos 2017 2018 Home Appliances & Consumer Electronics 2017 2018 Others Mcredit Mirae Assets HD Saison Home Credit FE Credit Section 3: Product Demand Analysis 3.6. Home appliances and consumer electronics POS products in total showed a clear decline for FinCos as competition intensified at POS locations and the market continued consolidation, reducing opportunities for new FinCos 34Financial Information | Business Information | Market Research
  35. 35. Source: FiinGroup from GFKVietnam Section 3: Product Demand Analysis 3.6. Home appliances and consumer electronics Consumer electronics market started to reach saturation at physical stores; FinCos prepare to move to online platforms following giant retailers Figure 40: Home appliances & consumer electronics sales and growth 10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 - 2013 2014 2015 2016 2017 2018 Size (USDbn) Growth YoY 35Financial Information | Business Information | Market Research
  36. 36. Section 4: Financial Benchmarking 36Financial Information | Business Information | Market Research Contents
  37. 37. 2014 2015 2016 2017 2018 ROA ROE Figure 42: Sector average ROE & ROA 2014-2018 Source: FiinGroup 40.00% 30.00% 20.00% 10.00% 0.00% 2014 2015 2016 2017 2018 Figure 41: Sector Average NIM 2014-2018 2014 37Financial Information | Business Information | Market Research 2015 2016 2017 2018 Figure 43: Sector Average NPL 2014-2018 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Source: FiinGroup Source: FiinGroup Section 4: Financial Benchmarking 4.1 Sector Average Overall, the sector experienced a slight increase in profitability while financial efficiencyand asset quality decreased
  38. 38. GrowthRatiosPrudentialRatios 150% Loan Growth NIM ROA ROE NPM NPL CAR CIR Provisions/ Operating Income Loan/Total Debt Section 4: Financial Benchmarking 4.2 Aggressive Strategy xx are among those companies with strong growth and profitability, albeit allowinghigher prudential ratio risk Source: FiinGroup 38Financial Information | Business Information | Market Research Figure 44: Financial Ratios among selected FinCos – Group 1 0% 50% 100%
  39. 39. GrowthRatiosPrudentialRatios 150% Source: FiinGroup 39Financial Information | Business Information | Market Research Loan Growth NIM ROA ROE NPM NPL CAR CIR Provisions/ Operating Income Loan/Total Debt Section 4: Financial Benchmarking 4.3 Cautious Strategy Xx show more prudence with stronger asset quality and capital adequacy, even if loan growth may be slower than average Figure 45: Financial Ratios among selected FinCos – Group 2 0% 50% 100%
  40. 40. Section 5: Regulatory Framework Updates 40Financial Information | Business Information | Market Research 5.1 Draft Revised Circular 43 5.2 Financial Inclusion Policies Contents
  41. 41. Section 5: Regulatory Framework Updates 5.1 Draft Revised Circular 43 Draft Revised Circular 43 proposed changes to the traditional FinCo models, setting a limit on cash loan disbursements, the target of disbursements and collection methods Changes Content Impact and Implications 41Financial Information | Business Information | Market Research Table 3: Summary of Proposed Changes in Draft revising the Circular No. 43/2016/TT-NHNN as issued by the SBV
  42. 42. Section 5: Regulatory Framework Updates 42Financial Information | Business Information | Market Research 5.1 Draft Revised Circular 43 5.2 Financial Inclusion Policies Contents
  43. 43. The Vietnamese Government has now tasked SBV with developing a National Strategy on Financial Inclusion to empower the at-risk segments with financial services 43Financial Information | Business Information | Market Research Source: World Bank Figure 46: National Financial Inclusion Snapshot Section 5: Regulatory Framework Updates 5.2 Financial Inclusion Policies
  44. 44. Section 6: Key Trends 44Financial Information | Business Information | Market Research 6.1 Product Trends – Emerging Models 6.2 Technology Trends – Fintech 6.3 Structural Trends - M&A Contents
  45. 45. FinCos could either improve market potential or improve the company’s competitiveness to increase the growth of a product 45Financial Information | Business Information | Market Research Source: FiinGroup Strong Moderate Low Strong Moderate Low Table 4: Potentials of CF Products Current Competition MarketPotential Section 6: Key Trends 6.1 Product Trends – Emerging Models
  46. 46. Factoring product is not yet widely offered due to entry barrier and under-developed market; this is set to change as merchants and SMEs fully utilize financial services Figure 47: Factoring service flow Section 6: Key Trends 6.1 Product Trends – Emerging Models 46Financial Information | Business Information | Market Research
  47. 47. Section 6: Key Trends 47Financial Information | Business Information | Market Research 6.1 Product Trends – Emerging Models 6.2 Technology Trends – Fintech 6.3 Structural Trends - M&A Contents
  48. 48. Electronic transactions rising on the back of e-commerce platform expansion, with focus on strong growth for mobile banking and e-wallet Figure 48: E-commerce GMV’s rapid growth (US$bn) 2014 2015 2016 2017 US$bn ZaloPay Ngan Luong 48Financial Information | Business Information | Market Research Vi VietAirPayViettelPayMomo Figure 49: No. of e-wallet Registered Users by 2018 Source: FiinGroup from VECITA Source: FiinGroup collected Section 6: Key Trends 6.2 Technology Trends – Fintech
  49. 49. Telco companies are potential competitors in fintech, having been allowed by the Government to establish e-payments and further financial inclusion in rural areas Internet Banking 78 banks Mobile Banking 41 banks QR Code 16 banks Section 6: Key Trends 6.2 Technology Trends – Fintech 49Financial Information | Business Information | Market Research Figure 50: Digitization of banks and payment channels
  50. 50. Section 6: Key Trends 50Financial Information | Business Information | Market Research 6.1 Product Trends – Emerging Models 6.2 Technology Trends – Fintech 6.3 Structural Trends - M&A Contents
  51. 51. Few M&A opportunities remain but the only way for foreign investors to enter Vietnam’s CF market as government focuses on consolidating and cleaning up the sector No. Company Description 1 2 3 4 51Financial Information | Business Information | Market Research Section 6: Key Trends 6.3 Structural Trends - M&A Table 5: List of Selected FinCos as M&A Targets
  52. 52. Appendices 52Financial Information | Business Information | Market Research A.1 Market Structure A.2 FinCos’ Profiles A.3 Alternative Lenders’ Profiles A.4 Regulations Framework Contents
  53. 53. Category Types of Loans Unlicensed Finance Company Licensed Finance Company Retail Bank Alternative Lender Installment Loans Housing/ Home Improvement   Home Appliances   Vehicles (Two wheelers and Four wheelers)   Educational/Medical/Travel/ Sports  Cash Loans Cash (Secured and Unsecured)    Personal Overdraft   Credit Card Credit Card   53Financial Information | Business Information | Market Research Appendices A.1. Sector Structure Whilst FinCos and Retail Banking consumer lending activities are currently regulated by Circular 43 and Circular 39, there exist other forms of consumer credit in Vietnam Table 6: Main groups of Consumer Finance products and services in Vietnam
  54. 54. Appendices 54Financial Information | Business Information | Market Research A.1 Market Structure A.2 FinCos’ Profiles A.3 Alternative Lenders’ Profiles A.4 Regulations Framework Contents
  55. 55. KEY FINANCIAL & OPERATIONAL INDICATORS Indicators 2015 2016 2017 2018 Unaudited Unaudited Unaudited Audited Total Assets (VNDbn) Charter Capital (VNDbn) Shareholder's Equity (VNDbn) Total Loans (VNDbn) Net Interest Income (VNDbn) Profit After Tax (VNDbn) NPL (VAS) ROA ROE LOAN PORTFOLIO 2018 BUSINESS PROFILE Founded Year 2010 Ownership 100% Private owned (VP Bank JSC) Location Ho Chi Minh City Offices 1 HO in Ho Chi Minh City, 1 customer service department in HCM and 1 representative office in Hanoi PRODUCTS - SALES AND HEADCOUNT Products Sales channels Payment channels Number of customers FE Credit has been the largest consumer finance company in Vietnam with nearly half of the market share since its establishment in 2015 Source: FiinGroup from SBV and NFSC Source: FiinGroup estimated from SBV and NFSC Appendices A.2 FinCo Profiles 55Financial Information | Business Information | Market Research
  56. 56. Appendices 56Financial Information | Business Information | Market Research A.1 Market Structure A.2 FinCos’ Profiles A.3 Alternative Lenders’ Profiles A.4 Regulations Framework Contents
  57. 57. P2PLending Pawnshops Running on pilot, these new lenders are leveraging technology to professionalize and popularize the lending and borrowing scene Appendices A.3 Alternative Lenders’ Profiles 57Financial Information | Business Information | Market Research
  58. 58. Appendices 58Financial Information | Business Information | Market Research A.1 Market Structure A.2 FinCos’ Profiles A.3 Alternative Lenders’ Profiles A.4 Regulations Framework Contents
  59. 59. The issuance of Circular No. 39/2016/TT-NHNN and Circular No. 43/2016/TT-NHNN have standardized the framework for business activities and reporting of consumer lending 59Financial Information | Business Information | Market Research Term Regulation Document Effective year Main Contents Table 7. Establishment Requirements for consumer credit activities Appendices A.4 Regulations Framework
  60. 60. Appendices 60Financial Information | Business Information | Market Research A.1 Market Structure A.2 FinCos’ Profiles A.3 Alternative Lenders’ Profiles A.4 Regulations Framework A.5 CF Players and Popular Products A.6 Major Player Groups in CF Business A.7 FinCos – Key Financial Data 2018 A.8 Vietnam Retail Banking – Key Figures Contents
  61. 61. Appendices A.5 CF Players and Popular Products 61Financial Information | Business Information | Market Research
  62. 62. Appendices 62Financial Information | Business Information | Market Research A.1 Market Structure A.2 FinCos’ Profiles A.3 Alternative Lenders’ Profiles A.4 Regulations Framework A.5 CF Players and Popular Products A.6 Major Player Groups in CF Business A.7 FinCos – Key Financial Data 2018 A.8 Vietnam Retail Banking – Key Figures Contents
  63. 63. Appendices A.6 Major Player Groups in CF Business 63Financial Information | Business Information | Market Research
  64. 64. Appendices 64Financial Information | Business Information | Market Research A.1 Market Structure A.2 FinCos’ Profiles A.3 Alternative Lenders’ Profiles A.4 Regulations Framework A.5 CF Players and Popular Products A.6 Major Player Groups in CF Business A.7 FinCos – Key Financial Data 2018 A.8 Vietnam Retail Banking – Key Figures Contents
  65. 65. Appendices A.7 Vietnam Finance Companies – Key Financial Data 2018 Vietnam Finance Companies - Key Figures at YE2018 (VNDbn) 65Financial Information | Business Information | Market Research
  66. 66. Appendices 66Financial Information | Business Information | Market Research A.1 Market Structure A.2 FinCos’ Profiles A.3 Alternative Lenders’ Profiles A.4 Regulations Framework A.5 CF Players and Popular Products A.6 Major Player Groups in CF Business A.7 FinCos – Key Financial Data 2018 A.8 Vietnam Retail Banking – Key Figures Contents
  67. 67. Appendices A.8 Vietnam Retail Banking – Key Figures Vietnam Retail Banking – Key Figures at YE2018 (VNDbn) 67Financial Information | Business Information | Market Research
  68. 68. Financial Information | Business Information | Market Research 68 For further inquiries and comment, please contact the team at FiinGroup Dong Le, CFA Director Research & Consulting +84 (024) 3562 69 62 (Ext. 110) +84 (0) 912 057 529 dong.le@fiingroup.vn Head Office 5th Floor, Anh Minh Building 36 Hoang Cau Street Hanoi, Vietnam + 84 (24) 3562 6962 Ho Chi Minh City Branch 3rd Floor, Profomilk Plaza Building 51 - 53 Vo Van Tan, District 3 Ho Chi Minh City, Vietnam + 84 (28) 3933 3586 Dung Vu Assistant Manager, Financial Services Research & Consulting +84 (024) 3562 69 62 +84 (0) 903 574 800 dung.vu@fiingroup.vn

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