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Consumer Finance in Vietnam

23 December 2022

SPEEDA Analyst | ASEAN Research Team

Consumer Finance in Vietnam

SPEEDA Industry Report

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Report Overview - Consumer Finance in Vietnam

Salient Nature/Key Features of the Industry

  • Vietnam's consumer finance industry is still in its nascent stage compared to other ASEAN countries.

  • In terms of product offerings, cash loan which refers to loans being directly disbursed to consumers accounts for more than half of the total outstanding balances of finance companies, followed by electronics and vehicle loans.

  • Finance companies accounted for a smaller share (16.3%) of the outstanding loan balance in 2020 compared to commercial banks (83.7%), however grew significantly over the past decade.

  • The industry is dominated by local players with increasing interest from foreign players through multiple M&A deals led by Japanese investors such as SMBC (JPN), Shinsei Bank (JPN) ,and Credi Saison (JPN).

Value Chain/Business Model

  • Commercial banks focus on secured consumer loans while finance companies target high-risk consumers with cash loans as the predominant product.

  • Given the targeted customer segments, players have different methods of underwriting to evaluate consumer creditworthiness. FE Credit (VNM) pioneers in the adoption of machine learning and data analytics to automate the credit assessment process.


Consumer Finance Value Chain

Consume Finance Value Chain in Vietnam



  • NPL ratio increased significantly to 11.0% in 2021 for finance companies due to the impact of the COVID-19 pandemic from the average annual rate of 5-6% over the previous years.

  • Vietnam government promotes consumer finance due to concerns of illegal moneylenders; However, regulation in 2019 introduces new requirements to control high-risk cash Loan and consumer protection.

Report Index

Industry Overview

  • Nascent Industry with Significant Growth Potential, Driven by Active Participation of Local Finance Companies and Foreign Players

  • Banks Focus on Secured Loans, Finance Companies Target High-Risk Consumers Through Cash Loans

  • Underwriting Plays a Critical Role in Differentiating Players

  • Government Promotes Consumer Finance Amidst Concerns over Illegal Moneylenders

Market Trends

  • Market Growth Stabilises After Surge; Cash Loan Segment Expands While Other Categories Grow Slower

  • NPLs Soar in 2021

Competitive Trends

  • Concentrated Industry Dominated by Local Players; M&A Ups Foreign Operator Tally

  • FE Credit Pioneering Leader of Country’s Unsecured Consumer Lending

  • Home Credit Second-Largest Player

  • HD Saison Backed by Japanese Credit Card Issuer


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