The report titled “Vietnam Auto Finance Market Outlook to
2024 - by Loan Tenure, by Type of Institution (Commercial Banks and Non-
Banking Financial Institutions) and by Type of Vehicle (Passenger and Light 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 Toyota
Financial Services Vietnam, Bank for Investment and Development of Vietnam,
Sacom Bank, Vietnam International Bank, Saigon Hanoi Bank, Tien Phong Bank 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.
Vietnam
Auto Finance Market Executive Summary
Market
Overview: Vietnam auto finance market has witnessed continuous
growth since 2014 and has constituted approximately 6% of the overall South
Asian auto finance market in 2018. The market compasses similar trends fairly
in-line with domestic vehicle sales market, qualitatively & quantitatively
with banks and non-banking financial institutions being the major operating
entities in the space. The market is
currently in its growth stage.
Market
Size: Vietnam auto finance market has enlarged registering a CAGR of close
to 27% during 2014-2018 in terms of
total auto loan disbursed. The market size by number of new automobiles
financed has increased at a CAGR of close to 26% (2014-2018) 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 1st,
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 2014-2018. On
the basis of auto loan outstanding, passenger vehicle recorded a CAGR above 36%
while light commercial vehicles experienced a CAGR of above 16%. 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
disbursed for passenger and light commercial vehicles, 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 moderately concentrated
among top 5 institutions (VIB Bank, TP Bank, BIDV, Sacom Bank, Toyota Financial
Services) in terms of auto loan outstanding. These entities control market
trends owing to large customer loyalty & trust associated. The vast
majority of auto financing occurs in banks although there is an increasing
shift to non-banking financial institutions in recent years as they offer lower
interest rates, quicker approvals and a simple documentation procedure. Consumer financing companies are expanding rapidly in Vietnam
as witnessed in the recent times. 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, Sacom Bank, Techcom Bank, Bank for
Investment and Development of Vietnam, whereas the major non-banking financial
institutions include FE Credit, Home Credit and HD Saison, Toyota Financial
Services Vietnam.
Future
Analysis and Projections
The credit disbursed in the Vietnam Auto Finance Market is
projected to increase at a CAGR close to 17%. 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 Credit Disbursement)
By Loan Tenure (1 Year, 2 Years, 3 Years, 4 Years, 5 and More
years on the basis of Volume of Vehicles sold in 2018)
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 2014-2018: Historical Period
Financial Year 2019-2024: 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
Vietcom Bank
Sacom Bank
Vietin Bank
Shinhan Bank Vietnam
Saigon Hanoi Bank
Techcom Bank
Vietnam International Bank
Bank for Investment and Development of Vietnam
Non-Banking Financial
Institutions:-
BMW Financial Services
HD Saison Finance Company
Daimler Finance
Toyota Financial Services Vietnam 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, 2014–2018
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
(2019-2024)
Growth Opportunities in Vietnam Auto Finance Market
Future Market Segmentation of Vietnam Auto Finance Market
SWOT Analysis of Vietnam Auto Finance Market
Analyst Recommendations
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Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
This might increase can also be attributed to the rise of financial services in the Dubai and improvements in the auto financial.
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