Vietnam Automotive Loan Market is Dominated by Banks During the Forecast Period
Growing
economies of Tier 2 cities in Vietnam, digitalization of banking and
non-banking financial institutions, partnership of various automotive brands
with financing institutions are the leading factors driving the Vietnam
Automotive Loan Market during the projected period.
According to TechSci Research
report, “Vietnam Automotive Loan Market–Industry Size,
Share, Trends, Competition, Opportunity, and Forecast, 2018-2028F”, The Vietnam automotive loan
market is expected to grow at a fast rate during the forecast period owing to factors such as rising development expanding economy, increasing consumer demand, and lowering interest
rates are the factors that are driving the sales of commercial vehicle and make
the most of business opportunity, which is driving the demand of automotive
loan industry during the forecast period in Vietnam. Additionally, digitalization,
infrastructure growth, regional connectivity, economic expansion by increased
exports & foreign investment, and rising demand for buses and commercial vehicles
as a result of better roads & highways are the main factors driving the growth
of the auto finance market.
The automotive loans are highly
competitive owing to the market's extreme fragmentation. The majority of
finance institutions are situated in Hanoi and Ho Chi Minh City
respectively, in the northern and southern areas of Vietnam, which serve as the
country's financial and commercial centers. In order to increase their
customer base, banks and consumer financial institutions plan to expand into
tier 2 cities across the country such as Hai Phong, Da Nang, and Bien Hoa. Retail
or small-scale as well as institutional or large-scale consumers in Vietnam are
among those who take automotive loans in Vietnam.
The loans are utilized for a variety of
purposes, including personal, business,
industrial, pick-up and drop-off services, public transportation, and
others. Automotive loan market is expanding since a larger portion of the
population can now afford automotive loans due to the reduction in interest rates.
Moreover, to better accommodate the rise
in the number of people owning passenger cars, the government has concentrated
on upgrading the infrastructure across the entire country. For instance, in
Vietnam, 243 km of new or renovated primary and secondary access roads have
been built as a result of the urban development project that was carried out in
collaboration with the World Bank. The government has also built
multiple roadways across the country, which has increased transportation
capacity and decreased accident rates. Customers have been attracted to
buy more passenger and commercial vehicles because of these advancements. Consequently,
these factors have developed the automotive loan market.
Browse over XX market data Figures spread through XX pages and an in-depth TOC on "Vietnam Automotive Loan Market"
On the basis of vehicle, two-wheeler loan, passenger cars and
commercial vehicle loan is available which helps an individual to buy
motorcycle and scooter, passenger car which includes hatchback, sedan, SUV and MPV
in an individual take loan to buy passenger cars and lay it later with EMIs.. A
commercial vehicle loan gives money to borrowers so they can purchase a vehicle
for business use. Commercial vehicles include truck which can be light duty
truck, medium duty truck, heavy duty truck. It includes van and bus as well, as
they are also commercial vehicles. Automotive loan is
primarily provided through banks, NBFCs
(non-banking financial company, OEM (original equipment manufacturer), and others
(fintech companies) over a specified tenure and interest rate.
The Vietnam automotive loan market is segmented on the
vehicle type, provider type, percentage of amount sanctioned, tenure and region.
On the basis of vehicle type, the market is divided
into two-wheeler, passenger car, and commercial
vehicle. Among them passenger cars
are fastest growing owing to the rising GDP per capita in Vietnam, along with
infrastructure advancements and the rise in social recognition that comes with
car ownership.
Based
on provider type, the market is further segmented into banks, NBFCs (non-banking
financial companies), OEM (original equipment manufacturer), others (fintech
companies). Among these, the banks and their subsidiaries lead the
market in terms of the number of existing automotive loans because of
their stable financial basis and high level of customer trust in the execution
of their services. However, the NBFCs only accounted for a limited share of
percentage in the market.
Furthermore, based on percentage
of amount sanctioned, the market is segmented into less than 25%, 25-50%,
51-75%, and more than 75%. On the basis of tenure, the market is segmented into
less than 3 years, 3-5 years, and more than 5 years. On the basis of region, the
market is divided among North Vietnam, South Vietnam, and Central Vietnam.
Key market players in the Vietnam
automotive loan market include:
- Joint Stock Commercial
Bank For Foreign Trade Of Vietnam (Vietcom Bank)
- Tien Phong Commercial
Joint Stock Bank
- Vietnam International
Commercial Joint Stock Bank VIB
- Vietnam Technological
and Commercial Joint Stock Bank (Techcombank)
- Toyota Financial Services
Vietnam Company Limited
- HD SAISON Finance Co.,
Ltd .
- Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank)
- Shinhan Bank Vietnam
Limited
- Bank for Investment and
Development of Vietnam
- Vietnam Joint Stock
Commercial Bank for Industry and Trade (Vietinbank)
Download Free Sample Report
Customers
can also request for 10% free customization on this report.
“With the rising
digitalization, infrastructure growth, regional connectivity, economic
expansion by increased exports & foreign investment, and growing demand for
buses and commercial vehicles as a part of infrastructure development for
general public is a result of better roads & highways, which is driving growth
of the automotive loan market. Moreover, the market is expanding since a larger
portion of the population is now more reliant on automotive loans due to the
reduction in interest rates. Moreover, the rising demand for new vehicles and
used vehicles is expected to drive the market growth during the forecast period.” said Mr. Karan Chechi,
Research Director with TechSci Research, a research-based global management
consulting firm.
“Vietnam Automotive Loan
Market Segmented By Vehicle Type [Two-Wheeler, Passenger Car, Commercial
Vehicle], By Provider Type [Banks, NBFCs (Non-Banking Financial Companies, OEM
(Original Equipment Manufacturer), Others (Fintech Companies)], By Percentage of Amount Sanctioned [Less than 25%, 25-50%, 51-75%,
More than 75%], By Tenure [ Less than 3 Years, 3-5 Years, More than 5 Years], By
Region, By Company, Forecast & Opportunities, 2018-2028F”, has evaluated the future
growth potential of automotive loan in the Vietnam market and provides
statistics and information on market structure, size, share, and future growth.
The report is intended to provide cutting-edge market intelligence and help decision
makers take sound investment decisions. Besides, the report also identifies and
analyzes the emerging trends along with essential drivers, challenges, and
opportunities present in the Vietnam automotive loan market.
Contact
Mr. Ken Mathews
708 Third Avenue,
Manhattan, NY,
New York – 10017
Tel: +1-646-360-1656
Email: [email protected]
Website: https://www.techsciresearch.com