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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)

Region:Asia

Author(s):Anish Malhotra and Harsh Mittal

Product Code:KR751

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Published On

January 2019

Total pages

109

About the Report

Click here for updated Report on: - Vietnam Auto Finance Market Outlook to 2026

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

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 ofclose to27% 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 independentconsumer 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 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 Size on the Basis of Auto Loan Outstanding, 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

Products

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 Historical Period - 2014-2018
  • Financial Year Future Forecast - 2019-2024 

Companies

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

Table of Contents

1. Executive Summary

1.1 Market Size and Overview
1.2. Competitive Analysis
1.3. Future Analysis and Projections

2. Research Methodology

2.1. Market Definitions
2.2. Abbreviations
2.3. Market Size and Modeling
2.4. Consolidated Research Approach
2.5. Market Sizing – Vietnam auto finance market
2.6. Variables (Dependent and Independent)
2.7. Multi Factor Based Sensitivity Model
2.8. Regression Matrix
2.9. Limitations
2.10. Final Conclusion

3. Vietnam Auto Finance Market Timeline, Overview& Ecosystem

3.1. Market Timeline, 1957-2018
3.2. Market Overview, 2014-2024
3.3. Vietnam Auto Finance Market Ecosystem, 2018

4. Vietnam Auto Finance Value Chain Analysis

4.1. Vendor Selection Process
4.2. Pain Points for Customer and Credit Institutions

5. Vietnam Auto Finance Market Size, 2012-2018

5.1. By Credit Disbursed, Auto Loan Outstanding & Number Of Automobiles Financed, 2014-2018
Loan Proportions, 2014-2018
5.2. Trends and Development in Vietnam Auto Finance Market, 2018
Growing Consumer Confidence Index
Increase in Vehicle Sales
Import Tax Cut
Promulgation of Decree 116-125/2017/ND-CP
Motorbike Dominance
Foreign Partnership
Domestic Car Manufacturer
5.3. Challenges in Vietnam Auto Finance Market, 2018
Small Scale Production and Competition
Unavailability of Supplies and Substandard Supply Chain
GovernmentRestrictions
Counterfeit Products

6. Vietnam Auto Finance Market Segmentation, 2014-2018

6.1. By Type of Vehicle (Passenger and Commercial), 2014-2018
6.2. By Number of Vehicles Financed Based on Loan Tenure, 2018
6.3. By Type of Institutions (Banks and Non-Bank Financial Institutions), 2018

7. Government Regulations, Major Associations & General Documents for Auto Financing, 2018

7.1. Regulatory Framework for Vietnam Credit Institutions
7.2. Major Associations
Credit Associataion
Vietnam banks Association (VNBA)
7.3. General Requirements and Documentation for New and Used Car Financing in Vietnam
Loan Application Terms
Lending Terms

8. Snapshot on Automotive Space in Vietnam, 2018

9. SWOT Analysis of Vietnam’s Auto Finance Market, 2018

10. Vietnam Auto Finance Market Competitive Scenario, 2018

10.1. Competition Nature, Business Positioning & Competition Parameters, 2018
10.2. Market Share of Major Players in Vietnam Auto Finance Market, 2018
10.3. Strengths And Weaknesses of Major Credit Institutions, 2018

11. Company Profiles for Major Banks in Vietnam, 2018

11.1. Vietnam International Bank (VIB)
11.2. Techcom bank
11.3. Tien Phong Bank
11.4. Sacom Bank Vietnam
11.5. Bank for Investment and Development of Vietnam (BIDV)
11.6. Vietcom Bank
11.7. Vietin Bank
11.8. Shinhan Bank Vietnam
11.9. Saigon Hanoi Bank

12. Company Profiles for Other Non-Banking Institutions in Vietnam, 2018

Consumer Finance Companies
12.1. Toyota Financial Services Vietnam
12.2. HD Saison
Captive Finance Companies

13. Vietnam Auto Finance Market Future Outlook and Projection, 2019E-2024E

13.1. Market Size on the Basis of Credit Disbursed And Auto Loan Outstanding, 2019E-2024E
13.2. Market Segmentation, 2019E-2024E
13.2.1. By Type of Vehicle (Passenger & Commercial), 2019E-2024E
13.2.2. By Institution (Banks and Non-Banking Financial Institution), 2024E

14. Analyst Recommendation

Disclaimer

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