Vietnam Auto Finance Market is Expected to Reach Over VND 135 Trillion (Credit Disbursed) by the End of 2023: Ken Research
14 Feb, 2019, 14:00 GMT
- It is expected that by the end of 2023, auto loans disbursed for commercial vehicles would overtake the passenger vehicles segment registering a CAGR of over 32% and 18% respectively during 2018-2023. Furthermore, commercial vehicle segment is projected to comprise of slightly over 60% share of the market in terms of credit disbursed by 2023.
- Banking institutions are still expected to dominate the market in terms of being the most convenient and trusted source of credit lending, however their relative share in the market would decline by nearly 2% in 2023. The consumer finance entities & captives under NBFI's are projected to witness growth registering a CAGR of close to 30% in terms of auto loan outstanding during 2018-2023.
GURUGRAM, India, Feb. 14, 2019 /PRNewswire/ --Growth in Vietnam's auto finance market size in future will be facilitated by simplified documentation & licensing processes, development in infrastructure, expanding geographical presence of major players, improvements in technology and equipments, new marketing strategies and product stream diversification. The planned highways and road improvements by the government are estimated to ease the congestion in the country and provide better and wider roads. These improvements should expand the number of personal and commercial vehicles financed, thereby growing the market.
The 80% of unbanked population are a rich potential segment for auto financing companies and this vast market is expected to be tapped into via the growing consumer financing companies. The rapid shift to digitalization by credit institutions is projected to see new schemes that are customer centric and enable them to opt for loans from home within hours to provide a convenient service. The low import taxes and increasing affluence of the middle class in Vietnam should result in cars becoming more affordable for a large number of customers.
Vietnam has a low car ownership, with only 16 out of 1000 people owning cars as of 2017 and a low car penetration rate; which forecasts a large untapped market for new and existing players. The urbanization of Vietnam, along with the economic growth of tier 2 cities will open up a new avenue of auto financing as the poorer segment of the population are able to afford motorbikes and low end passenger cars. The focus on public transport and ride sharing services to combat the traffic will also expand the number of commercial vehicles financed, further developing the auto finance market in Vietnam which is projected to contribute to 6% of the Auto lending market in Southeast Asia by 2018.
Ken Research in its latest study "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)" suggests a growth at a CAGR of close to 28% on the basis of credit disbursed in the Vietnam Auto Finance Market by during 2012-2018.
Key Segments Covered
- Market Segmentation by Type of Vehicles (Passenger Vehicles and Commercial Vehicles on the basis of Credit Disbursed and Auto Loan Outstanding)
- Market Segmentation By Type of Institutions (Banks & Subsidiaries and Non Bank Financial Institutes on the Basis of Auto Loan Outstanding)
- Market Segmentation 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 Manufacturers
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
For more information on the market research report please refer to the link below:
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