Key players in Vietnam's consumer finance market

In Vietnam, the system of credit institutions in general as well as consumer finance companies in particular has developed strongly, in order to meet most of the consumer capital needs of the people and in fact the market. The Vietnam's consumer finance market has made great strides in recent years, consumer credit outstanding at the end of 2020 reached about VND 1.8 million billion, accounting for about 20% of the total outstanding loans of the economy, an increase of 2.5 times compared to 2012. For the group of consumer finance companies alone, outstanding loans reached about VND 130,000 billion (accounting for about 7.7% of the total outstanding loans of the economy, the rest was made by commercial banking institutions) with more than 30 million customers served. For home loans and home repairs, consumer credit accounts for about 12% of total outstanding loans, much lower than other countries in the region.





The Vietnam consumer financce market is currently dominated by 3 large enterprises with about 75% market share: FE Credit, HD Saison and Home Credit. Recently, many M&A deals have taken place in the market, in which there are many participations of financial companies and foreign investment funds, which will help businesses have a more solid capital foundation, but also help businesses to improve capital and increase the competition for the market.



FE Credit

Vietnam Prosperity Bank Finance Company Limited (FE Credit) was formerly just a Credit Division of Vietnam Prosperity Commercial Joint Stock Bank (VPBank) and was transformed into an independent legal entity in 2015. After many years In operation, FE Credit has gained a solid foundation, becoming a leader in the consumer finance market with about 50% market share, gaining the trust of all classes of customers through its products and services. its unsecured lending services. Recently, VPBank has successfully transferred 49% of its contributed capital at FE Credit to SMBC Group, a large financial and banking group in Japan, the name of the business will be changed to Vietnam Thinh Finance Company Limited. Vuong SMBC. Net interest income of the business in 2020 is more than 17,000 billion dong, after-tax profit is nearly 3,000 billion dong, the income result is far superior to other competitors in the market.



Home Credit

Home Credit Vietnam Finance Company Limited is a company under Home Credit Financial Group - a financial brand from the Czech Republic, currently the group is present in 10 countries around the world and participates in entered the Vietnamese market in 2008. Home Credit is a leading enterprise in the field of consumer installment loans with the advantages of fast and convenient; In recent years, Home Credit has oriented to develop into a Fintech company, perfecting a large database system for automatic contract approval, helping to reduce loan procedures for customers, and taking actions strongly shows Home Credit's ambition to become a leading Fintech company. Home Credit's net interest income in 2020 is nearly 4,500 billion VND, profit after tax is more than 600 billion VND; Total customer loans in 2020 are about VND 18,500 billion, down 7.8% compared to 2019.



HD Saison

HD Saison Finance Company Limited is a company where HDBank holds 51% of the voting rights, the other partner is Credit Saison Financial Group from Japan. HD Saison has been operating since 2007 with the fastest growing service being installment loans to buy cars, light trucks, construction materials, musical instruments. motorbike installment with the largest service referral network, reaching even customers in difficult and remote areas; In 2019, HD Saison shook hands with VietjetAir to launch the first air ticketing loan service in Vietnam. In 2020, HD Saison's total assets are about VND 16,000 billion, an increase of VND 1,000 billion compared to 2019, the company's net interest income is nearly VND 4,000 billion, and after-tax profit is nearly VND 800 billion.






MB Shinsei

MB Shinsei Finance Company Limited (Mcredit) is a finance company that was established quite late, when there were many large and small financial companies in the market, but after a short time, Mcredit has gained a certain foothold in the market. school. Mcredit is a joint venture between Military Commercial Joint Stock Bank and Shinsei Bank, a leading financial group in Japan; Mcredit is the only financial company in Vietnam that has been profitable since the first year of operation. Mcredit's main products are cash loans and installment loans with simple procedures and competitive interest rates. Net interest income of enterprises in 2020 is nearly 3,000 billion dong, profit after tax is over 200 billion dong.



Shinhan Finance

Shinhan Finance Vietnam Company Limited (Shinhan Finance) is a 100% foreign-owned financial company, belonging to Shihan Card Corporation - the No. 1 credit card business in Korea. Assessing Vietnam as an important market in Shinhan Card's global development strategy, Shinhan previously spent US$151 million to buy Prudential's consumer finance company, targeting the Vietnamese and Indonesian markets; Shinhan Financa focuses on diversifying financial solutions for customers and utilizes technology support and digitization strategy from Shinhan Card to improve product quality and efficiency. Shinhan Finance's total assets in 2020 are more than VND 8,000 billion (up 5.7% compared to 2019), the company's net interest income is nearly VND 2,000 billion, and after-tax profit is nearly VND 400 billion.



Toyota Finance

Toyota Finance Vietnam Company Limited (TFSVN) is invested with 100% capital by Toyota Financial Group and up to now TFSVN has been present in 63 provinces and cities with many service points, authorized dealers, showrooms of Toyota Finance Corporation. Toyota. TFSVN's products are aimed at financial products for customers wishing to own Toyota vehicles across the country with maximum incentives; In addition, TFSVN also issues promissory notes, certificates of deposit bonds and other valuable papers. TFSVN's net interest income in 2020 is more than VND 400 billion, profit after tax is nearly VND 200 billion, loans to customers at the end of 2020 are nearly VND 7,900 billion.



Mirae Asset Finance

Mirae Asset Vietnam Finance Company Limited (MAFC) belongs to Mirae Asset Financial Group of Korea, presently present in about 15 countries and operated in Vietnam market in 2011. MAFC provides providing customers with financial services for unsecured consumer loans, car loans, recently MAFC and FPT Shop cooperated to offer a 100% online financial solution for FPT Shop customers, before MAFC also linked with payment gateways and e-wallets to support customers in their online experience. In the consumer finance market, MAFC has increased its market share from 4.2% in 2019 to 5.4% in 2020; MAFC's net interest income in 2020 is nearly 2,000 billion VND, profit after tax is just over 100 billion VND.





Jaccs

Jaccs Vietnam International Finance Company Limited is a member of Japan Consumer Credit Group from Japan, Jaccs Japan was originally just a credit service provider with monthly installments at stores. in Hokkaido and so far has expanded its network and expanded in Asian markets. Jaccs Vietnam started with motorbike loan services in 2010 then expanded to many services such as credit business, credit card, and financial business. Net interest income of enterprises in 2020 is more than VND 800 billion, loans to customers are more than VND 3,000 billion (up 11% compared to 2019), total liabilities at the end of 2020 is about VND 2,500 billion.



EVN Finance

Electricity Finance Joint Stock Company (EVN Finance) was established in 2008 with the founding shareholders being Electricity of Vietnam (EVN), An Binh Commercial Joint Stock Bank (ABBank), Refrigeration Mechanical and Electrical Joint Stock Company (EVN) REE). The main task of EVN Finance is to arrange and manage capital flows for EVN's power projects; besides providing financial products and services to other units in the electricity industry and other economic sectors. In 2018, EVN Finance launched the Easy Credit brand to provide unsecured consumer loan support products to all customers, aiming to become the leading unsecured lending brand with a fast process. Fastest and easiest on the market. Net interest income of enterprises in 2020 is more than 700 billion VND, profit after tax is more than 200 billion VND; EVN Finance's total liabilities in 2020 is more than 25,000 billion VND, an increase of 34.6% compared to 2019.



SHB Finance

Finance Company of Saigon - Hanoi Commercial Joint Stock Bank (SHB Finance) is owned by Saigon - Hanoi Commercial Joint Stock Bank with a network of systems covering many key provinces, financial services of enterprises. The business targets the segment of customers with modest incomes with many competitive advantages of products. Recently, SHB signed a contract to transfer 100% of charter capital at SHB Finance to Krungsri bank (the 5th largest financial group in Thailand), currently transferring 50% of charter capital and the remaining 50%. expected to transfer in the next 3 years. Net interest income of SHB Finance in 2020 is nearly 1,000 billion dong, profit after tax is quite thin, only about 60 billion dong.



VietCredit

Tin Viet Finance Joint Stock Company (VietCredit) was formerly Cement Finance Joint Stock Company with the goal of providing financial solutions to businesses that are members of VICEM in the cement field, after The company then changed its orientation to individual customers in the field of consumer finance and became VietCredit as it is today. VietCredit is a pioneering financial company to launch a domestic credit card product - Loan Card, this is the first type of loan card on the market that allows customers to actively plan spending and repay debt depending on their needs. and your income. Net interest income of enterprises in 2020 is about 700 billion dong, total liabilities at the end of the year is nearly 4,500 billion dong (up 73.9% compared to 2019), VietCredit's profit after tax is just over 30 billion dong.



Lotte Finance

Lotte Vietnam Finance Company Limited (Lotte Finance) entered Vietnam in 2018, after LotteCard – belonging to Lotte Group acquired 100% of shares of a finance company in Vietnam from a large bank in Vietnam. country. Although participating in the market for a short time, Lotte Finance's coverage is relatively wide, especially in Ho Chi Minh City and Hanoi, thanks to the solid foundation from the previous company and the strong support of LotteCard. Lotte Finance targets low-income customers, with main products being unsecured loans and credit cards, in addition to a by-product of insurance. Lotte Finance's total assets at the end of 2020 are nearly VND 2,400 billion (up 30.7% compared to 2019), a loss after tax of more than VND 300 billion.


The evolution of the Covid epidemic also partly affected the consumer finance market when many customers could not work and lost their income, thus affecting their ability to repay loans, which is a challenge for businesses. However, the epidemic opens an opportunity for the market as consumer habits change, using more cashless payment methods with credit cards and integrating financial companies. consumption with online platforms. The competition in the market is expected to be more exciting in the coming time and there will be many changes when businesses identify the right customer segments and take appropriate steps.



Source: Vietdata research