Illustrative image (Source: HDBank) Hanoi (VNA) - Consumer finance is proving to be an attractivesector with the number of foreign companies rising through mergers andacquisitions, the news site cafef.vn reported.
In late September, the VietnamTechnological and Commercial Joint Stock Bank (Techcombank) reportedly sold itsstake in the financial arm TechcomFinance to the Republic of Korea’s creditfirm Lotte Card, a member of Lotte Group, for 87.5 billion won or 1.73 trillionVND (76.9 million USD).
After being purchased by Techcombank inJanuary 2015 from the Vietnam National Chemical Group (Vinachem),TechcomFinance has 600 billion VND in charter capital.
The deal will allow Lotte Card to issuecredit cards, provide installment financing services and consumer finance in Vietnam,and target the local consumer finance sector, valued at 744 trillion VND (32.8billion USD) by June 30, 2017, equal to 12.4 percent of the Vietnameseeconomy’s credit balance.
In mid-September, MCredit – thefinancial arm of the Military Commercial Joint Stock Bank (MBBank) – officiallychanged its name to MB Shinsei Consumer Finance Co Ltd, a step that helpedMBBank completed selling a 49 percent stake in MB Shinsei Consumer Finance tothe Japanese bank Shinsei. The deal between the two banks was signed inNovember 2016.
Local consumer finance companies havealso made their way to expanding market coverage, such as FE Credit – theconsumer finance arm of Vietnam Prosperity Joint Stock Commercial Bank(VPBank).
FE Credit in July 2017 raised itscharter capital to 4.49 trillion VND from the previous 2.79 trillion VND. Ithas continuously increased charter capital from 1 trillion VND since beingacquired by VPBank from the Vietnam National Coal and Mineral Industries Group(Vinacomin) in June 2014.
According to FE Credit, the competitionin Vietnam’s consumer finance industry will get fiercer as more players enterthe country, reducing market shares and comparative advantages of those alreadypresent in the market.
Economic and financial specialist Can VanLuc said at a recent online conference that consumer finance would help peopleafford their needs and manage their finances better.
It would further develop the sector ofindividual consumer spending - which accounted 67-68 percent of Vietnam’s grossdomestic product (GDP) – having a positive impact on the country’ssocio-economic development and stablising the financial market, he said.
According to analysts, the consumerfinance business still has room to grow and the participation of both domesticand foreign companies will help boost the sector’s influence on the Vietnameseeconomy.-VNA
In late September, the VietnamTechnological and Commercial Joint Stock Bank (Techcombank) reportedly sold itsstake in the financial arm TechcomFinance to the Republic of Korea’s creditfirm Lotte Card, a member of Lotte Group, for 87.5 billion won or 1.73 trillionVND (76.9 million USD).
After being purchased by Techcombank inJanuary 2015 from the Vietnam National Chemical Group (Vinachem),TechcomFinance has 600 billion VND in charter capital.
The deal will allow Lotte Card to issuecredit cards, provide installment financing services and consumer finance in Vietnam,and target the local consumer finance sector, valued at 744 trillion VND (32.8billion USD) by June 30, 2017, equal to 12.4 percent of the Vietnameseeconomy’s credit balance.
In mid-September, MCredit – thefinancial arm of the Military Commercial Joint Stock Bank (MBBank) – officiallychanged its name to MB Shinsei Consumer Finance Co Ltd, a step that helpedMBBank completed selling a 49 percent stake in MB Shinsei Consumer Finance tothe Japanese bank Shinsei. The deal between the two banks was signed inNovember 2016.
Local consumer finance companies havealso made their way to expanding market coverage, such as FE Credit – theconsumer finance arm of Vietnam Prosperity Joint Stock Commercial Bank(VPBank).
FE Credit in July 2017 raised itscharter capital to 4.49 trillion VND from the previous 2.79 trillion VND. Ithas continuously increased charter capital from 1 trillion VND since beingacquired by VPBank from the Vietnam National Coal and Mineral Industries Group(Vinacomin) in June 2014.
According to FE Credit, the competitionin Vietnam’s consumer finance industry will get fiercer as more players enterthe country, reducing market shares and comparative advantages of those alreadypresent in the market.
Economic and financial specialist Can VanLuc said at a recent online conference that consumer finance would help peopleafford their needs and manage their finances better.
It would further develop the sector ofindividual consumer spending - which accounted 67-68 percent of Vietnam’s grossdomestic product (GDP) – having a positive impact on the country’ssocio-economic development and stablising the financial market, he said.
According to analysts, the consumerfinance business still has room to grow and the participation of both domesticand foreign companies will help boost the sector’s influence on the Vietnameseeconomy.-VNA
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