- Currently 73.5% of the population in Vietnam uses a smartphone. The country aims to increase the rate to 85% by the end of 2022.
- In Vietnam, the total transaction value in the Digital Investment segment is projected to reach $2.88 Bn by 2023 which helps the fin-tech companies to grow further in the country.
- The taxi services have been increasing in Vietnam thereby increasing the financing of commercial vehicles, which further increases vehicle purchases in the country.
Digitalization in Vietnam is anticipated: Digitalization in Vietnam is anticipated to rise in the future which will lead to an increase in the Auto Finance market with multiple offline and e-platform players entering the market. Also, the increasing population and growing income levels leading to rising in sales of cars are expected to drive the rise in Auto Outstanding Loans in Vietnam in near future. The Vietnamese Government is planning a motorbike ban after 2030 to reduce traffic congestion and emissions which will increase the selling of more 3W and 4W in the market.
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Growing Disposable Income and Status: As Vietnam is a middle-income economy, the majority of the people are anticipated to choose a longer loan duration owing to the installments being pocket friendly as monthly payments will be lower. Consumer preferences are more likely to shift to purchasing new vehicles with growing disposable income and status. Also, with the growing population and rapid urbanization, LCVs are probable to have higher sales as LCVs are preferred for high volume low bulk cargo majorly for consumer goods, textiles, and more for short distance haulage.
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Block chain-Powered Financing and Artificial Intelligence: In Vietnam digitization has improved significant workflow enhancements, including faster processing, more reliable document handling, and mitigated risk. These models could help keep vehicles affordable as technology features increase manufacturing and maintenance costs. Also, insurers and banks are piloting a variety of block chain-powered financing solutions, and auto captive lenders are serving as test beds for manufacturer block chains which will increase the capacity of the auto finance industry in Vietnam.
Analysts at Ken Research in their latest publication Vietnam Auto Finance Market Outlook to 2026F- Driven by Digital Penetration and Dominance of Banks along with a Shift in Consumer Preference from 2W to 4W By Ken Research observed that the Auto Finance market is an emergent market in Vietnam at a rebounding stage from the economic crisis after the pandemic. The rising government policies and the increase in banks and financial institutions, entry of captive finance companies along with growing ride-sharing services are expected to contribute to the market growth over the forecast period. The market is expected to grow at a 23.7% CAGR during 2021-2026F owing to the rise in the economy of the country, increasing interest rates, and new government policies.
Key Segments Covered: –
Vietnam Auto Finance:
By Type of Vehicle financed
New
Used
By Tenure:
1 year
2 years
3 years and more
By Type of Motor Vehicle:
Commercial
Passenger
By type of commercial motor Vehicle:
LMV
MCV
HCV
By Type of passenger motor vehicle
2W
3W
4W
By Type of Lender:
Banks
OEMs/Captives
NBFC
By Type of Lending Bank:
Government
Private
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Key Target Audience
Vietnam Auto Industries
Government Bodies & Regulating Authorities
Financial Institutions
Manufacturing Companies
Automobile Distributors
Automobile Dealers and Associations
Investors & Venture Capital Firms
Time Period Captured in the Report:
Historical Year: 2016-2021
Base Year: 2021
Forecast Period: 2022F– 2026F
Major Banks:
Bank for Investment & Development
Vietcom Bank
Sacom Bank
Techcom Bank
Shinhan Bank
Vietnam International Commercial Joint Stock Bank
Vietin Bank
Tien Phong Bank
Woori Bank
Key Topics Covered in the Report
Vietnam Automotive Industry Overview
Vietnam’s Online Auto Finance Market Ecosystem
Business Cycle, Genesis, and Timeline of Vietnam Online Auto Finance Market
Vietnam Auto Finance Value Chain Analysis
Vietnam Auto Finance Market Size, 2021
Vietnam Auto Finance Market Segmentation (by Type of Vehicle Financed, by Type of Motor Vehicle, by Type of Passenger Vehicle, by Type of Commercial Vehicle, by Type of Lenders, by Type of Lending Banks, by Tenure of New and Old Vehicles), 2021
SWOT Analysis of Vietnam Auto Finance Market
Government Regulations of Vietnam Auto Finance Market
Trends and Developments of Vietnam Auto Finance Market
Decision Making Parameter for Selecting Car Loan Vendor
Issues and Challenges in Vietnam Auto Finance Market
Customer Analysis of Auto Finance Market in Vietnam
Competition Overview of Auto Finance Market in Vietnam
Future Outlook and Projections of Auto Finance Market in Vietnam, 2021-2026F
Impact of COVID-19 on Auto Finance Market in Vietnam
Analyst Recommendations for Online Auto- Finance Market in Vietnam
For more insights on the market intelligence, refer to the link below: –
Vietnam Auto Finance Market Analysis
Related Reports by Ken Research: –
Singapore Auto Finance Market Outlook to 2025
Philippines Auto Finance Market Outlook to 2024
