Vietnamplus

The COVID-19 pandemic is significantly changing the landscape of the consumer credit market as consumers tend to tighten their budget and pay more attention to healthcare, environment and lifestyle as well as switching to online shopping.

Though Vietnam’s outstanding consumer credit almost tripled over the last decade, its share of total outstanding loans is yet to keep pace with that of its regional nations. There is plenty room for improvement in the time to come, industry insiders have said.

Several banks are keen to establish consumer finance arms to grab a bigger share of a market that is expected to reach 1,000 trillion VND (4.38 billion USD) by 2020 and grow at 29 percent annually.

The National Financial Supervisory Commission (NFSC) forecast Vietnam’s credit to grow 17- 18 percent in 2018, similar to the growth last year.

Consumer credit in HCM City has grown by an average of 20 percent per year during 2012-2015, according to the State Bank of Vietnam.

Customers must be cautious when seeking consumer loans, Vietnam Competition Authority officials said during a meeting in Hanoi on July 13.

Consumer credit was expected to develop rapidly in Vietnam in the next five years, driven by rising demand from a recovering economy with a young population.

Demand for consumer credit is growing strongly and it is time to eradicate private money lending, a round table on financial issues heard in Ho Chi Minh City on October 20.

Consumer credit is expected to grow strongly in Vietnam thanks to the many advantages the country possesses, economists have said.

The State Bank of Vietnam has released a draft circular regulating consumer credit activities of financial companies to better manage lending as well as benefit domestic consumers.