Vietnam Alternative Lending Market Business and Investment Opportunities Databook – 75+ KPIs on Alternative Lending Market Size, By End User, By Finance Model, By Payment Instrument, By Loan Type and Demographics - Q2 2024 Update

Vietnam Alternative Lending Market Business and Investment Opportunities Databook – 75+ KPIs on Alternative Lending Market Size, By End User, By Finance Model, By Payment Instrument, By Loan Type and Demographics - Q2 2024 Update

According to PayNXT360, the alternative lending in the country is expected to grow by 24.0% on an annual basis to reach US$441.2 million in 2024.

Medium to long term growth story of alternative lending in Vietnam remains strong. Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 16.9% during 2024-2028. The alternative lending market in the country will increase from US$355.9 million in 2023 to reach US$824.4 million by 2028.

The alternative lending sector in Vietnam is rapidly expanding, driven by digital innovations and increasing demand for flexible credit solutions. Key trends include the growth of BNPL services, mobile payment programs, and significant SME financing. Strategic partnerships and supportive regulatory changes further bolster this sector's development, suggesting continued robust growth and a shift towards more inclusive and accessible financial solutions.

Growth in the Alternative Lending Sector

The alternative lending sector in Vietnam has experienced significant growth over the past six months, driven by the increasing adoption of digital financial solutions and the rise of fintech companies offering flexible lending options.

This trend is expected to continue, with projections indicating robust expansion in the next six months as more consumers and small businesses seek accessible credit alternatives amid challenges in traditional banking systems. Key sub-segments, particularly the ""buy now, pay later"" market, are anticipated to thrive, reflecting changing consumer preferences and increasing demand for short-term financing solutions.

Key Developments in the Alternative Lending Sector

Product Launches and Innovations

• Buy Now, Pay Later (BNPL) Solutions - The expanding BNPL market is boosting the sector by offering consumers flexible, short-term lending solutions.
• Mobile Payments Pilot Program Extension - Hanoi's pilot program for mobile payments in rural areas, launched in 2021, has been extended until the end of 2024. The program allows customers with mobile phone accounts to make small-value transactions without needing a bank account, smartphone, or internet connection, promoting financial inclusion and a cashless society.
• Funding Societies' SME Financing - Singapore's Funding Societies entered the Vietnamese market, providing over US$70 million in financing to SMEs in agriculture, services, and construction. As of April 2023, the platform had facilitated more than 5 million transactions, facilitating US$3 billion in SME financing across Southeast Asia.

Strategic Partnerships

• Sendo and Kredivo: This collaboration enables Sendo's e-commerce platform to offer a buy now, pay later (BNPL) service through Kredivo, an Indonesian credit platform, in partnership with VietCredit. This allows users to access credit lines for purchases on the Sendo marketplace.
• Momo and TPBank: Their partnership has facilitated the MoMo Postpaid Wallet, which provides users with small lines of credit for various services, enhancing the accessibility of short-term financing options within the MoMo app.
• Viettel Money and FE Credit: This partnership launched the Paynow service, a postpaid wallet that can be activated online, offering consumers a deferred payment option with a quick setup process.
 
Regulatory Changes

The Vietnamese government has introduced several key policies to regulate and promote the growth of the alternative lending sector:
The State Bank of Vietnam (SBV) released Circular 06 and Circular 08, which significantly impact investors' funding plans for projects and business initiatives in Vietnam:
• Circular 06 prohibits credit institutions from providing loans to contribute capital, purchase shares, or subscribe to new shares in target companies. This effectively limits onshore bank loans for M&A transactions.
• Circular 08 allows companies to use short-term loans to refinance outstanding cross-border loans and borrow from onshore credit institutions to repay cross-border debt without the previous requirement that the current debt is for business purposes.

Fintech Steering Committee - In 2017, the State Bank of Vietnam (SBV) established the Fintech Steering Committee to develop a legal framework for the fintech industry in Vietnam. The Committee focuses on e-payment, e-KYC, P2P lending, Open API, and blockchain applications

Regulatory Sandbox - Vietnam is considering a regulatory sandbox for fintech firms to test products in a controlled environment before launching them to ensure innovation and financial stability.

This report provides a detailed data-centric analysis of the Alternative Lending industry, covering market opportunities and risks across a range of industry categories. With over 50 KPIs at the country level, this report provides a comprehensive understanding of Alternative Lending market dynamics, market size and forecast, and market share statistics.

It breaks down market opportunity by type of payment instrument, loan types, and consumer behavior. In addition, it provides a snapshot of marketing objective and industry spend dynamics in Vietnam. KPIs in both value and share term help in getting in-depth understanding of end market dynamics.

PayNXT360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.

Scope

This report provides in-depth data-centric analysis of Alternative Lending industry in Vietnam through 125 tables and 150 charts. Below is a summary of key market segments:

Vietnam Economic Indicators
• Gross Domestic Product at Current Prices
• Population
• Unbanked Population
• Unemployment Rate
• Loan Default Rate

Vietnam Alternative Lending Market Size and Forecast
• Transaction Value
• Average Transaction Value
• Transaction Volume

Vietnam Alternative Lending Market Size and Forecast by End User
• End User - Business
• End User - Consumer

Vietnam Alternative Lending Market Size and Forecast by Finance Models
• P2P Marketplace Consumer Lending
• P2P Marketplace Business Lending
• P2P Marketplace Property Lending
• Balance Sheet Consumer Lending
• Balance Sheet Business Lending
• Balance Sheet Property Lending
• Invoice Trading
• Debt Based Securities
• Equity Based Crowd Funding
• Real Estate Crowd funding

Vietnam Alternative Lending Market Size and Forecast by Payment Instrument - Transaction Value, Volume and Average Value
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money

Vietnam Alternative Lending Market Size and Forecast by Payment Instrument to Model
• Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Consumer Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Business Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Property Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Consumer Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Business Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Property Lending
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Invoice Trading
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Debt Based Securities
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Equity Based Crowd Funding
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money
• Alternative Lending Market Size and Forecast by Payment Instrument to Real Estate Crowd funding
• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money

Vietnam Alternative Lending Market Size and Forecast by Loan Types
• B2C Loans
• Personal Loan
• Payroll Advance
• Home Improvement
• Education/Student Loans
• Point of Sale
• Auto Loans
• Medical Loans
• B2B Loans
• Lines of Credit
• Merchant Cash Advance
• Invoice Factoring
• Revenue Financing

Vietnam Alternative Lending Analysis by Consumer Attitude and Behaviour
• By Age
• By Income
• Gender

Reasons to buy

• Gain a thorough understanding of the Alternative Lending market dynamics: Market opportunities, significant trends, and forecasting (2019 – 2028) are listed. To stay ahead of the curve, comprehend market trends using important KPIs like Value and Share.

• Insights by Industry: Evaluate new opportunities across multiple industries, and obtain market dynamics by industry in order to swiftly catch up with the latest and upcoming developments in Alternative Lending markets.

• Market-specific strategies: With our unique blend of quantitative forecasting and cutting-edge insights, we can identify growth sectors that are focused on particular opportunities and analyse market-specific risks as well as significant trends in the Alternative Lending industry.

• Through industry intelligence, forward-looking research of Alternative Lending market spend, and key opportunities in Vietnam, develop proactive and profitable company plans.