The report titled “Vietnam Auto Finance Market Outlook to 2023 – by Loan Tenure, by Type of Institution (Commercial Banks and Non- Banking Financial Institutions) and by Type of Vehicle (Passenger and Commercial)” provides a comprehensive analysis of Vietnam’s Auto Finance Market including market evolution, overview, genesis, market size and market segmentations. Extensive focus has been placed in quantifying the market size of this industry by credit disbursed auto loans outstanding and number of vehicles financed. The report covers aspects such as market segmentation (by loan tenure, type of vehicles and type of institutions) and snapshot on general automotive space in Vietnam. Competitive landscape of major players including Vietinbank, Bank for Investment and Development of Vietnam, Vietnam International Bank, Saigon Hanoi Bank, Tien Phong Bank, FE Credit, Home Credit and HD Saison have been extensively covered mentioning company overview, major business strategies, USP, car finance delivered, products and services, market share, strengths, financials and various other parameters. Value chain analysis has been given prime importance covering role & nature of major entities along with mentioning the major vendor selection criteria and pain points. The report also covers future industry analysis (by credit disbursed and by auto loan outstanding), future market segmentation, SWOT analysis, growth opportunities, upcoming business models, government regulations and analyst recommendations. The report is useful for existing auto finance companies, potential entrants, investors and other stakeholders to align their market centric strategies according to ongoing and expected trends in the future.

Vietnam Auto Finance Market Executive Summary

Market Overview: .

Market Size: Vietnam auto finance market has enlarged registering a CAGR of close to 25% during 2012-2018 in terms of total auto loan disbursed. The market size by number of new automobiles financed has increased at a CAGR of close to 30% (2012-2018) owing to consumer’s preference shift towards cars from motorbikes with mounting purchasing power. This increase can also be attributed to the rise of ride sharing services in the country and improvements in the financial infrastructure. The growth stagnated in 2017 due to customers waiting for the new 0% tax on imported cars which came into effect on January 1^st, 2018. Growing consumer confidence index, constant prime lending rates, growing car sales have been the major push factors.

Market Segmentation

By Type of Vehicles: On the basis of credit disbursed for commercial vehicles registered a robust CAGR during 2012-2018. On the basis of auto loan outstanding, passenger vehicle recorded a CAGR above 20% while commercial vehicles experienced a CAGR of above 8%. The continuous increase in demand for passenger vehicles can be attributed to the rising GDP per capita in Vietnam along with improvements in infrastructure, and the growth in social status from the ownership of a car.

By Type of Institutions: By auto loan outstanding, banks & subsidiaries have led the market in 2018 with their stable financial structures and high trust factor associated with the provision of their services. A very minimal proportion was captured by NBFIs. Captives and independent consumer finance companies in Vietnam also form part of this segment.

By Loan Tenure: On the basis of auto loan outstanding, 5 year loan tenure has been the most popular one in 2018. This was followed by 4 year loan tenure and 3 year tenure respectively. Short term loans have been less popular hence 2 year and 1 year loan tenures have comprised of a very small share in the market.

Competitive Analysis

The market is fragmented owing to large number of banking (79) and non banking institutions (27) present in the market. Although banks, subsidiaries and non bank financial institutions have had a dominant market share in 2018, consumer financing companies are expanding rapidly in Vietnam. There are around 16 consumer financing companies generally catering to the low income segment of the population. Prominent entities include Vietnam International Bank, Tien Phong Bank, Saigon Hanoi Bank, Bank for Investment and Development of Vietnam and Vietcombank, whereas the major non-banking financial institutions include FE Credit, Home Credit and HD Saison.

Future Analysis and Projections

The credit disbursed in the Vietnam Auto Finance Market is projected to increase at a CAGR close to 26%. The major growth drivers include lower tax on imported vehicles, infrastructural improvement, a rising commercial vehicle segment, new catchment areas, continued dominance of motorbikes and the potential of consumer financing.

Hanoi and Ho Chi Minh City are expected to continue their dominance with increasing number of population shifting to these regions. VinFast, Vietnam’s first local auto manufacturer is establishing its new automobile & motorbike manufacturing complex in Hai Phong, which is anticipated to expand its economy and expand the market for car financing. Bien Hoa is expected to rapidly grow due to its close proximity to Ho Chi Min City and is experiencing rapid infrastructural improvements and economic growth, which is projected to bring in numerous auto financing companies. The tourism industry in Vietnam is booming and is projected to enhance the economy of coastal cities such as Da Nang and Nha Trang.

Key Segments Covered:-

By Type of Vehicles (Passenger Vehicles and Commercial Vehicles on the basis of Credit Disbursed and Auto Loan Outstanding)

By Type of Institutions (Banks & Subsidiaries and Non Bank Financial Institutes on the Basis of Auto Loan Outstanding)

By Loan Tenure (1 Year, 2 Years, 3 Years, 4 Years, 5 and More years on the basis of Auto Loan Outstanding)

Key Target Audience:-

Existing Auto Finance Companies

Banks & Subsidiaries

Captive Finance Companies

Non Banking Financial Institutions

New Market Entrants

Automobile Financing Companies

Government Organizations

Investors

Automobile Associations

Automobile Original Equipment Manufacturer

Time Period Captured in the Report:-

Financial Year 2013-2018: Historical Period

Financial Year 2019-2023: Future Forecast

Key Target Audience:-

Existing Auto Finance Companies

New market entrants

Government bodies

Investors

Automobile Manufacturers

Automobile Associations

Auto parts Equipment Manufacturer

Companies Cited in the Report:-

Banks & Subsidiaries

Tien Phong Bank

Vietcombank

Agribank

Vietinbank

Shinhan Bank Vietnam

Saigon Hanoi Bank

Techcombank

Bank for Investment and Development of Vietnam

Vietnam international bank

Non-Banking Financial Institutions:-

FE Credit

Cement Finance Joint Stock Company

EVN Finance Joint Stock Company

Handico Finance Joint Stock Company

HD Saison Finance Company

Home Credit Vietnam Finance Company Limited

JACCS International Vietnam Finance Company Limited

Maritime Bank Finance Company Limited

MB Shinsei Finance Limited Liability Company

Mirae Asset Finance Company (Vietnam) Limited

Post and Telecommunication Finance Company Limited

Prudential Vietnam Finance Company Limited

SHBank Finance Company Limited

Technological and Commercial Finance Company Limited

Toyota Financial Services Vietnam Company Limited

Vietnam Shipbuilding Finance Company Limited

Key Topics Covered in the Report:-

Vietnam Auto Finance Market Genesis

Vietnam Auto Finance Market Value Chain

Vietnam Auto Finance Market Ecosystem

Vietnam Auto Finance Market Overview

Vietnam Auto Finance Market Size on the Basis of Credit Disbursed, 2012–2018

Vietnam Auto Finance Market Size on the Basis of Auto Loan Outstanding, 2013–2018

Vietnam Auto Finance Market Growth Drivers & Challenges

Vietnam Auto Finance Market Segmentation by Type of Vehicles (Passenger and Commercial on the basis of Credit disbursed and Auto Loan Outstanding)

Vietnam Auto Finance Market Segmentation by Tenure of Loan (1-5 Years on the basis of Auto Loan Outstanding)

Vietnam Auto Finance Market Segmentation by Type of Institutions (Banks and Non-Banks on the basis of Auto Loan Outstanding)

Government Regulations in Vietnam Auto Finance Market

Strengths and Weaknesses of Major Players in Vietnam Auto Finance Sector

Company Profile of Major Players in Vietnam Auto Finance Sector

Future Outlook and Projections in Vietnam Auto Finance Market (2019-2023)

Growth Opportunities in Vietnam Auto Finance Market

Future Market Segmentation of Vietnam Auto Finance Market

SWOT Analysis of Vietnam Auto Finance Market

Analyst Recommendations

To know more, click on the link below:-

https://www.kenresearch.com/banking-financial-services-and-insurance/loans-and-advances/vietnam-auto-finance-market/180197-93.html

Related Reports By Ken Research:-

https://www.kenresearch.com/banking-financial-services-and-insurance/loans-and-advances/indonesia-car-finance-market/142267-93.html

https://www.kenresearch.com/banking-financial-services-and-insurance/loans-and-advances/saudi-arabia-car-finance-market/125720-93.html

https://www.kenresearch.com/banking-financial-services-and-insurance/loans-and-advances/egypt-car-finance-market/124560-93.html

https://www.kenresearch.com/banking-financial-services-and-insurance/loans-and-advances/india-car-finance-market-report/679-93.html

Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
[email protected]
+91-9015378249