Vietnam Loan Market is Expected To Be Dominated By Business Loan Segment During the Forecast Period
Relaxation in overall lending
standards and rising demand from business sector is expected to fuel the growth
of the loan market across the country through 2028
According to TechSci Research report, “Loan Market - Vietnam Industry Size, Share, Trends,
Competition, Opportunity, and Forecast, 2018-2028F” The Vietnam loan market is anticipated
to project robust growth during the forecast period owing to booming online loans, rising
demand from small business sector, and rising internet penetration, and
changing lifestyle.
Money borrowed from a bank or other
financial organization is known as a loan. A loan is when one accepts money
from a bank, a friend, or another financial institution with the promise to pay
it back later, along with the principal and interest. Principal is the amount
borrowed, while interest is the fee for taking out the loan. Due to the risk
that lenders take when they grant customers a loan and their concern that
you might not be able to return it, they must charge interest as a way to
offset their losses. There are many kinds of loans, such as auto loans, student
loans, and mortgages.
For the entire year of 2022, loans consumer durables are expected to witness the highest demand, owing to the rise in commercial loans, business loans, industry and construction. The least growth was anticipated for credit demand for agricultural, forestry, and fishery sectors.
The government is working on various initiatives to ease the loan limits for customers. For instance, Prime Minister Pham Minh Chinh directed the central bank and credit organizations to immediately raise loan limits for banks and businesses to boost economic growth, job creation and inflation control, the government website reported. Moreover, the State Bank of Vietnam, which currently limits the credit growth of the banking system to 14% and has said it does not plan to increase that this year, has raised quotas for some banks. Lending in the banking system grew 12% in 2022.
Browse over xx market data Figures
spread through xx Pages and an in-depth TOC on the " Vietnam Loan Market ".
The Vietnam
loan market is segmented on the basis of type, provider type, interest rate, tenure
period, region, and competitional landscape.
Most loans fall into one of two
categories: secured or unsecured. Secured loans necessitate the pledge of an
asset, such as a car or house, as loan collateral in the event that the
borrower defaults or fails to make loan payments. In this situation, the lender
takes ownership of the asset. Unsecured loans are uncommon yet in demand. An
unsecured loan is one where the lender is not permitted to demand repayment in
the event that the borrower defaults.
Based on provider type,
the market is further segmented into bank, non-banking financial companies, and
others (fintech companies). A bank is a type of financial entity that lends
money while both taking deposits from the general public and generating demand
deposits. The bank might carry out lending activities directly or indirectly
through capital markets. The financial firms known as nonbank financial
companies (NBFCs), provide a range of banking services but without a banking
license. On the other hand, any business that connects to or utilizes financial
services via the internet, cloud services, mobile devices, or software
technology is referred to as a fintech. Fintech company will grow at a faster
rate in Vietnam due to numerous foreign credit platforms entering Vietnam.
Furthermore, based on interest
rates, the market is segmented into fixed and floating. Based on tenure period,
the market is segmented into less than 5 years, 5-10 years, 11-20 years, more
than 20 years. On the basis of region, the market is divided into North, South,
and Central.
Key market players in the Vietnam Loan
Market include:
- Joint Stock Commercial Bank
for Foreign Trade of Vietnam (Vietcombank)
- Joint Stock Commercial Bank
for Investment and Development of Vietnam (BIDV)
- Vietnam Technological and
Commercial Joint Stock Bank (TECHCOMBANK)
- Vietnam Joint Stock Commercial
Bank for Industry and Trade (VietinBank)
- Military Commercial Joint
Stock Bank (MB Bank)
- Vietnam Bank for Agriculture
and Rural Development (Agribank)
- Asia Commercial Joint Stock
Bank (ACB)
- Saigon Thuong Tin Commercial
Joint Stock Bank (Sacombank)
- Tien Phong Commercial Joint
Stock Bank (TPBank)
- Vietnam International Bank
(VIB)
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"Rising internet penetration, booming
online loans and usage of chatbots with AI features is a significant trend
expected to impact the growth over the forecasted period. Rising demand from
business sector, increasing urbanization, and increasing focus toward loan
sector by banks and NBFCs are the leading factors that will positively impact
the Vietnam Loan Market. Due to the wide range of loans available online to
meet the specific needs of customers and the growing popularity of the internet
channel, the market is growing,” said Mr. Karan Chechi, Research Director with
TechSci Research, a research-based global management consulting firm.
Vietnam Loan Market By Type (Secured Loan
and Unsecured Loan), By Provider Type (Bank, Non-Banking Financial Companies
and Others (Fintech Companies)), By Interest Rate (Fixed and Floating), By
Tenure Period (Less than 5 Years, 5-10 Years, 11-20 Years, More than 20 Years),
By Region, Competition,
Forecast & Opportunities, 2028F, has evaluated the future growth potential of loan
products 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 Loan Market.
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