Vietnam Automotive Loan Market Segmented, By Vehicle Type (Two-Wheeler, Passenger Car, Commercial Vehicle), By Provider Type (Bank, Non-Financial Banking Companies, Others), By Tenure (Less Than 3 Years, 3-5 Years, More Than 5 Years), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

The Vietnam Automotive Loan market was valued at USD 6.34 Billion in 2024 and is expected to grow to USD 11.78 Billion by 2030 with a CAGR of 16.23% during the forecast period. The Vietnam Automotive Loan market is primarily driven by several key factors. The rising disposable income and expanding middle class have led to an increased demand for personal vehicles, particularly among young professionals. As vehicle ownership becomes more affordable, many consumers turn to financing options to make their purchases. Banks and financial institutions are offering a range of automotive loan products with flexible terms and low interest rates, making car ownership accessible to a broader demographic. Also, government incentives and policies to promote vehicle sales, such as tax reductions or subsidies, have further stimulated market growth. The growing trend of urbanization, improved infrastructure, and increased consumer confidence also contribute to the expansion of the automotive loan market in Vietnam.

Key Market Drivers

Rising Sales of Passenger Vehicle

The rising sales of passenger vehicles in Vietnam significantly drive the automotive loan market. As a part of this, according to a recent study, as of 2023, passenger vehicle sales, account for the largest share of the total sales volume, reached approximately 214.6 thousand units in that year. As the country's economy continues to grow, the middle class is expanding, leading to increased purchasing power among consumers. More individuals, especially in urban areas, are seeking to own personal vehicles, with passenger cars being a popular choice due to their convenience and comfort. The growing demand for passenger vehicles is also fueled by the need for personal mobility, as urbanization and infrastructural developments improve connectivity across the country. Automotive loans have become an attractive solution for consumers, as financial institutions offer competitive interest rates, flexible repayment terms, and easy loan approval processes. The government's policies, including tax incentives and support for domestic automobile production, also boost vehicle sales, further propelling demand for automotive loans. Also, rising consumer confidence and greater access to digital platforms for loan applications are contributing to the increased adoption of financing options in the automotive sector.

Rising Disposable Income

Rising disposable income in Vietnam is a significant driver of the automotive loan market. As a part of this, according to a recent study, in 2025, Vietnam's household disposable income per capita  is USD 3.78k.As the economy grows and the middle class expands, more individuals have access to higher income levels, increasing their ability to afford non-essential goods such as cars. This financial improvement enables more consumers to consider purchasing vehicles, particularly passenger cars, as a means of personal transportation. With greater disposable income, people are more inclined to take out automotive loans, as the financing options available become more accessible and appealing. Financial institutions offer competitive interest rates and flexible terms, making it easier for consumers to finance their vehicle purchases. The increased spending capacity also contributes to the growing demand for passenger vehicles, thus expanding the overall automotive loan market in Vietnam.

Growing Availability of Online Platform

The growing availability of online platforms is a key driver of the automotive loan market in Vietnam. As digital technology advances, financial institutions have increasingly adopted online platforms to offer automotive loans, making the loan application process faster, more convenient, and accessible to a broader audience. Consumers can easily compare loan options, check eligibility, and apply for loans from the comfort of their homes, reducing the need for physical visits to banks or dealerships. This shift to digital platforms has also improved customer experience by providing more transparent information, streamlined processes, and quicker approvals. Also, it appeals to younger, tech-savvy consumers who are more likely to engage in online financial transactions. As digital adoption continues to rise in Vietnam, the accessibility and convenience of online loan platforms are expected to drive higher demand for automotive loans.

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Key Market Challenges

 Lack of Financial Literacy

Lack of financial literacy presents a significant challenge in Vietnam's automotive loan market. Many consumers, especially in rural areas or among lower-income groups, may have limited knowledge about financial products, loan terms, and the long-term implications of borrowing. This lack of understanding can lead to poor decision-making, such as taking on loans that are difficult to repay or selecting loan terms that do not match their financial capabilities. Also, confusion about interest rates, repayment schedules, and hidden fees can result in consumer dissatisfaction and even loan defaults. Financial institutions often face the challenge of educating consumers and ensuring they fully comprehend the terms and conditions before committing to loans. Improving financial literacy is essential to ensuring responsible borrowing, boosting consumer confidence, and fostering long-term growth in the automotive loan market.

High Interest Rates

High interest rates represent a significant challenge in Vietnam’s automotive loan market. Despite increased demand for vehicles, many consumers find that the cost of financing can be prohibitive due to relatively high interest rates offered by financial institutions. These high rates can make monthly payments less affordable, especially for low to middle-income consumers, limiting their ability to purchase vehicles through loans. The elevated rates may also deter potential borrowers, leading to slower market growth and reduced car sales. For financial institutions, while higher rates offer better returns, they can result in loan defaults or delayed repayments if consumers struggle to meet their obligations. The high interest rates can also reduce the overall attractiveness of automotive loans, making it a less viable option for many potential customers.

Key Market Trends

Growing Sales of Electric Vehicle

The growing sales of electric vehicles (EVs) are becoming an important trend in Vietnam’s automotive loan market. As a part of this, according to a recent study, as of 2024, the count of electric vehicles in Vietnam hit one million by 2028.As global concerns about environmental sustainability rise, more Vietnamese consumers are shifting towards electric cars due to their eco-friendly nature and long-term cost savings on fuel and maintenance. This shift is also supported by government policies promoting green technologies, including incentives and subsidies for electric vehicle purchases. In response, financial institutions are adapting by offering specialized automotive loan products tailored to EV buyers, often with more attractive terms to encourage the purchase of environmentally friendly vehicles. As the EV market expands, automotive lenders are incorporating electric vehicle financing into their portfolios, recognizing the increasing demand for these vehicles. This trend is expected to grow as more consumers embrace sustainable mobility options, thus driving further growth in the automotive loan market in Vietnam.

Flexible Loan Terms

Flexible loan terms are becoming a prominent trend in Vietnam's automotive loan market. As consumers seek more affordable options to purchase vehicles, financial institutions are responding by offering loans with varied repayment periods, lower down payments, and adjustable interest rates. These flexible terms help cater to a wider range of customers, especially those from middle-income backgrounds, who may struggle with higher upfront costs or rigid repayment schedules. Lenders are also offering extended loan tenures, allowing buyers to spread payments over a longer period, reducing the burden of monthly installments. This trend makes it easier for consumers to commit to vehicle purchases without compromising their financial stability. As competition among financial institutions increases, offering more flexible loan terms is becoming a key strategy to attract and retain customers in Vietnam’s dynamic automotive market.

Growing Popularity of Buy Now Pay Later

The growing popularity of Buy Now, Pay Later (BNPL) schemes is emerging as a significant trend in Vietnam's automotive loan market. This trend is driven by the increasing preference for flexible payment options among consumers, particularly younger buyers who may not have the full purchasing power upfront but still wish to own a vehicle. BNPL allows customers to split the cost of a car into smaller, manageable payments over time without incurring high interest rates, making it an attractive option for many. This trend is especially prevalent in the context of online car purchases, where buyers can quickly apply for BNPL options through digital platforms. Financial institutions and dealerships are adapting by offering these plans to make vehicles more affordable and accessible, which is helping boost automotive sales in the country. As consumer confidence in BNPL grows, it’s expected to become a key feature in the automotive loan market, catering to a broader customer base.

Segmental Insights

Provider Type Insights

Bank dominated the Vietnam Automotive Loan market, primarily due to their established financial infrastructure, trust, and wide reach. Traditional banks offer competitive interest rates, a variety of loan products, and flexible terms, making them the preferred choice for consumers seeking vehicle financing. Also, banks have strong relationships with car dealerships, enabling seamless financing options at the point of sale. Their extensive branch networks and digital banking platforms also provide easy access to automotive loans, especially for urban consumers. As the demand for vehicles grows, banks continue to lead the market, leveraging their experience and resources to cater to a wide range of customers.

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Regional Insights

Northern dominated the Vietnam Automotive Loan market, driven by its larger urban population and stronger economic activity, particularly in cities like Hanoi. As the economic hub of the region, Northern Vietnam sees higher demand for vehicles, with many consumers turning to automotive loans to finance their purchases. Also, Southern is driven by factors such as strong economic base, rapid urbanization, rising disposable income, increased industrial activity, and a growing middle class, particularly in Ho Chi Minh City.

Recent Developments

• In July 2024, Shinhan Bank Vietnam Limited (“Shinhan Bank”) entered into a strategic partnership agreement with City Auto Joint Stock Company (“City Auto Group”) to provide customers with preferential and all-encompassing financial solutions for car products within City Auto Group’s system.
• In August 2023, Toyota Vietnam, Toyota Financial Services Vietnam (TFSVN), and the Mai Linh Group, a prominent transport company, entered into a strategic partnership agreement. This collaboration marks a significant step in enhancing the transportation and automotive sectors in Vietnam. Under this partnership, Toyota Vietnam will provide vehicles to Mai Linh Group’s fleet, while TFSVN will offer tailored financial services and loan solutions to support the acquisition of these vehicles.

Key Market Players  

• Joint Stock Commercial Bank for Foreign Trade of Vietnam
• TP Bank
• Vietnam International Bank (VIB)
• Vietnam Technological and Commercial Joint-Stock Bank
• Toyota Motor Vietnam Co., Ltd
• Shinhan Bank (Vietnam) Ltd
• Vietnam - Russia Joint Venture Bank
• Woori Bank (Vietnam) Ltd
• Bank of India
• VietinBank Group

Report Scope:

In this report, the Vietnam Automotive Loan Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•   Vietnam Automotive Loan Market, By Vehicle Type:

o   Two-Wheeler

o   Passenger Car

o   Commercial Vehicle

• Vietnam Automotive Loan Market, By Provider Type:

o   Bank

o   Non-Financial Banking Companies

o   Others

• Vietnam Automotive Loan Market, By Tenure:

o   Less Than 3 Years

o   3-5 Years

o   More Than 5 Years

• Vietnam Automotive Loan Market, By Region:

o   Southern

o   Northern

o   Central

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Vietnam Automotive Loan Market.

Available Customizations:

Vietnam Automotive Loan Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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