Vietnam Automotive Loan Market

Best Price Guarantee	Length	Publisher	Published Date	SKU
from $3,500	73 Pages	TechSci Research	October, 2023	TCSI18239757

Best Price Guarantee
Price	from $3,500
Length	73 Pages
Publisher	TechSci Research
Published Date	October, 2023
SKU	TCSI18239757

Vietnam Automotive Loan Market, By Vehicle Type (Two-Wheeler, Passenger Car, Commercial Vehicle), By Provider Type (Banks, NBFCs (Non-Banking Financial Companies), OEM (Original Equipment Manufacturer)), Others (Fintech Companies)), By Percentage of Amount Sanctioned (Less than 25%, 25-50%, 51-75%, More than 75%), By Tenure ( Less than 3 Years, 3-5 Years, More than 5 Years), By Region, By Company, Forecast & Opportunities, 2018-2028F

The Vietnam automotive loan market is witnessing robust growth owing to the growing number of new financed cars because of consumers' preference shift away from motorcycles to cars and rising purchasing power. This increase can also be attributed to the growing expansion of taxi services in the country with better roads and highways. The rising GDP per capita in Vietnam, along with infrastructure advancements and the rise in social status that comes with car ownership, are all contributing factors to the ongoing increase in demand for passenger cars, which in turn is driving the automotive loan industry in Vietnam.

Automotive loan is a sustainable solution for an individual which allows them to buy a vehicle either for personal use or commercial use if one has not enough savings. By using automotive loans, an individual can purchase a vehicle outright by obtaining out a loan from a bank or another financial institution. Then, over a specified period of time, one must repay the loan in equal monthly instalments together with interest.

According to a report of Vietnam Automobile Manufactures’ Association 2021, the total sales of automobiles in Vietnam was around 304,149 units. According to Vietnam Register, there were 4.512 million cars in use as of 2021, or 46 vehicles per 1,000 inhabitants. Vietnamese citizens would need to save money for 12 years to purchase a car worth VND 600 million (USD30,000) with the average monthly income of VND 4.25 million (USD 180) in 2020.Thus, to purchase the vehicle, people are availing loan which in turn is expected to drive the automotive loan market in Vietnam during the forecast period.

Digitalization of Financial Institutions is Fueling the Market Growth

The rate of digitalization in Vietnam is expected to expand in the coming years, as the number of multiple offline and online businesses are significantly shifting toward entering within the automotive loan sector. In Vietnam, digitization has significantly accelerated workflow improvements, reduced risk, faster processing, and enhanced document handling. For instance, with digitalization financial institutions are offering auto credit feature in which the amount of EMI will automatically deduct from the linked account of the borrower. Additionally, a number of blockchain-powered financing solutions are currently being evaluated by insurers and banks, and auto captive lenders are acting as market areas for manufacturer blockchains, which is expected to drive the Vietnam automotive loan market.

Growing Demand for Commercial Vehicles Fuels Market Growth

The demand for commercial vehicles is increasing in Vietnam for transportation and light commercial vehicle is mostly preferred in Vietnam for high volume transportation, low bulk cargo, particularly for the transportation of consumer products, textiles, and other items across short distances. Therefore, sales of commercial vehicles are likely to increase. In Vietnam, the demand for goods through e-commerce is also increasing, which is driving the usage of light commercial vehicles in logistics and opening up new market opportunities in the country. As Vietnam has a middle-income economy, it is expected that most consumers will prefer a longer loan term to buy commercial vehicles because the instalments will be more affordable due to the lower monthly payments which is driving the automotive loan industry in Vietnam.

Growing Purchasing Power of Middle-Class Economy Drives Market Growth

The projected growth of the Vietnamese automotive loan market is attributed to the middle class’ rising purchasing power. With the reduction in interest rates, consumers are opting for automotive loan in Vietnam to make purchase of vehicles which is affordable for a larger segment of the population. Additionally, it is anticipated that the rise in vehicle sales in Vietnam would be fueled by the country's expanding population and rising income levels. Thus, with rising disposable income and status, consumers' inclinations are more likely to shift toward purchasing new vehicles through loan, which is anticipated to drive the Vietnam automotive loan market.

Market Segmentation

The Vietnam automotive loan market is segmented on the basis of vehicle type, provider type, percentage of amount sanctioned, and tenure. On the basis of vehicle type, the market is divided into two-wheeler, passenger car, and commercial vehicle. Based on the provider type, the market is segmented into banks, NBFCs (non-banking financial companies), OEM (original equipment manufacturer), others (fintech companies). Based on percentage of amount sanctioned, the market is segmented into less than 25%, 25-50%, 51-75%, more than 75%. On the basis of tenure, the market is segmented into less than 3 years, 3-5 years, and more than 5 years.

Company Profiles

Joint Stock Commercial Bank For Foreign Trade Of Vietnam (Vietcom Bank); Tien Phong Commercial Joint Stock Bank; Vietnam International Commercial Joint Stock Bank VIB; Vietnam Technological and Commercial Joint Stock Bank (Techcombank); Toyota Financial Services Vietnam Company Limited; HD SAISON Finance Co., Ltd; Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank); Shinhan Bank Vietnam Limited; Bank for Investment and Development of Vietnam; Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) are among the major players in driving the market growth of the Vietnam automotive loan market.

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:
Two-Wheeler
Passenger Car
Commercial Vehicle
Vietnam Automotive Loan Market, By Provider Type:
Banks
NBFCs (Non-Banking Financial companies)
OEM (Original Equipment Manufacturer)
Others
Vietnam Automotive Loan Market, By Percentage of Amount Sanctioned:
Less than 25%
25-50%
51-75%
More than 75%
Vietnam Automotive Loan Market, By Tenure:
Less than 3 Years
3-5 Years
More than 5 Years
Vietnam Automotive Loan Market, By Region:
North Vietnam
South Vietnam
Central Vietnam

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Vietnam automotive loan market.

Available Customizations:

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).

Please Note: Report will be updated with the latest data and delivered to you within 3-5 working days of order. Single User license will be delivered in PDF format without printing rights

1. Introduction: 1.1. Product Overview; 1.2. Key Highlights of the Report; 1.3. Market Coverage; 1.4. Market Segments Covered; 1.5. Research Tenure Considered
2. Research Methodology: 2.1. Objective of the Study; 2.2. Baseline Methodology; 2.3. Key Industry Partners; 2.4. Major Association and Secondary Sources; 2.5. Forecasting Methodology; 2.6. Data Triangulation & Validation; 2.7. Assumptions and Limitations
3. Executive Summary: 3.1. Market Overview; 3.2. Market Forecast; 3.3. Key Regions; 3.4. Key Segments
4. Voice of Customer Analysis (B2C Model Analysis): 4.1. Brand Awareness; 4.2. Factors Influencing Loan Availing Decision; 4.3. Sources of Information; 4.4. Challenges Faced After Purchase
5. Vietnam Automotive Loan Market Outlook: 5.1. Market Size & Forecast; 5.1.1. By Value; 5.2. Market Share & Forecast; 5.2.1. By Vehicle Type Market Share Analysis [Two-Wheeler, Passenger Car, Commercial Vehicle]; 5.2.2. By Provider Type Market Share Analysis [Banks, NBFCs (Non-Banking Financial Companies), OEM (Original Equipment Manufacturer), Others (Fintech Companies)]; 5.2.3. By Percentage of Amount Sanctioned Market Share [Less than 25%, 25-50%, 51-75%, More than 75%]; 5.2.4. By Tenure Market Share [Less than 3 Years, 3-5 Years, More than 5 Years]; 5.2.5. By Regional Market Share Analysis; 5.2.5.1. North Vietnam Market Share Analysis; 5.2.5.2. South Vietnam Market Share Analysis; 5.2.5.3. Central Vietnam Market Share Analysis; 5.2.6. By Top 5 Companies Market Share Analysis, Others (2022); 5.3. Vietnam Automotive Loan Market Mapping & Opportunity Assessment; 5.3.1. By Vehicle Type Market Mapping & Opportunity Assessment; 5.3.2. By Provider Type Market Mapping & Opportunity Assessment; 5.3.3. By Percentage of Amount Sanctioned Market Mapping & Opportunity Assessment; 5.3.4. By Tenure Market Mapping & Opportunity Assessment; 5.3.5. By Region Market Mapping & Opportunity Assessment
6. Vietnam Two-Wheeler Automotive Loan Market Outlook: 6.1. Market Size & Forecast; 6.1.1. By Value; 6.2. Market Share & Forecast; 6.2.1. By Provider Type Market Share Analysis; 6.2.2. By Percentage of Amount Sanctioned Market Share Analysis; 6.2.3. By Tenure Market Share Analysis
7. Vietnam Passenger Car Automotive Loan Market Outlook: 7.1. Market Size & Forecast; 7.1.1. By Value; 7.2. Market Share & Forecast; 7.2.1. By Provider Type Market Share Analysis; 7.2.2. By Percentage of Amount Sanctioned Market Share Analysis; 7.2.3. By Tenure Market Share Analysis
8. Vietnam Commercial Vehicle Automotive Loan Market Outlook: 8.1. Market Size & Forecast; 8.1.1. By Value; 8.2. Market Share & Forecast; 8.2.1. By Provider Type Market Share Analysis; 8.2.2. By Percentage of Amount Sanctioned Market Share Analysis; 8.2.3. By Tenure Market Share Analysis
9. Market Dynamics: 9.1. Drivers; 9.1.1. Rising Economies of Tier 2 Cities in Vietnam; 9.1.2. Growing Purchasing Power of Middle Class Economy; 9.1.3. Demand of Commercial Vehicles; 9.2. Challenges; 9.2.1. Increasing Competition; 9.2.2. Bad-Debt issues
10. Impact of COVID-19 on Vietnam Automotive Loan Market
11. Market Trends & Developments: 11.1. Increase in Ride-Sharing Services in Vietnam; 11.2. Reduction in Interest Rate for of Automotive Loan; 11.3. Digitalization of Financial Institution; 11.4. Partnership of Various Automotive Providers with Financial Institution; 11.5. Growing Sales of Cars
12. SWOT Analysis: 12.1. Strengths; 12.2. Weaknesses; 12.3. Opportunities; 12.4. Threats
13. Policy and Regulatory Landscape
14. Vietnam Economic Profile
15. Competitive Landscape: 15.1. Company Profiles; 15.1.1. Joint Stock Commercial Bank For Foreign Trade Of Vietnam (Vietcom Bank); 15.1.1.1. Company Details; 15.1.1.2. Product & Services; 15.1.1.3. Financials (As Reported); 15.1.1.4. Key Market Focus & Geographical Presence; 15.1.1.5. Recent Developments; 15.1.1.6. Key Management Personnel; 15.1.2. Tien Phong Commercial Joint Stock Bank; 15.1.2.1. Company Details; 15.1.2.2. Product & Services; 15.1.2.3. Financials (As Reported); 15.1.2.4. Key Market Focus & Geographical Presence; 15.1.2.5. Recent Developments; 15.1.2.6. Key Management Personnel; 15.1.3. Vietnam International Commercial Joint Stock Bank VIB; 15.1.3.1. Company Details; 15.1.3.2. Product & Services; 15.1.3.3. Financials (As Reported); 15.1.3.4. Key Market Focus & Geographical Presence; 15.1.3.5. Recent Developments; 15.1.3.6. Key Management Personnel; 15.1.4. Vietnam Technological and Commercial Joint Stock Bank (Techcombank); 15.1.4.1. Company Details; 15.1.4.2. Company Details; 15.1.4.3. Product & Services; 15.1.4.4. Financials (As Reported); 15.1.4.5. Key Market Focus & Geographical Presence; 15.1.4.6. Recent Developments; 15.1.4.7. Key Management Personnel; 15.1.5. Toyota Financial Services Vietnam Company Limited; 15.1.5.1. Company Details; 15.1.5.2. Product & Services; 15.1.5.3. Financials (As Reported); 15.1.5.4. Key Market Focus & Geographical Presence; 15.1.5.5. Recent Developments; 15.1.5.6. Key Management Personnel; 15.1.6. HD SAISON Finance Co., Ltd; 15.1.6.1. Company Details; 15.1.6.2. Product & Services; 15.1.6.3. Financials (As Reported); 15.1.6.4. Key Market Focus & Geographical Presence; 15.1.6.5. Recent Developments; 15.1.6.6. Key Management Personnel; 15.1.7. Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank); 15.1.7.1. Company Details; 15.1.7.2. Product & Services; 15.1.7.3. Financials (As Reported); 15.1.7.4. Key Market Focus & Geographical Presence; 15.1.7.5. Recent Developments; 15.1.7.6. Key Management Personnel; 15.1.8. Shinhan Bank Vietnam Limited; 15.1.8.1. Company Details; 15.1.8.2. Product & Services; 15.1.8.3. Financials (As Reported); 15.1.8.4. Key Market Focus & Geographical Presence; 15.1.8.5. Recent Developments; 15.1.8.6. Key Management Personnel; 15.1.9. Bank for Investment and Development of Vietnam; 15.1.9.1. Company Details; 15.1.9.2. Product & Services; 15.1.9.3. Financials (As Reported); 15.1.9.4. Key Market Focus & Geographical Presence; 15.1.9.5. Recent Developments; 15.1.9.6. Key Management Personnel; 15.1.10. Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank); 15.1.10.1. Company Details; 15.1.10.2. Product & Services; 15.1.10.3. Financials (As Reported); 15.1.10.4. Key Market Focus & Geographical Presence; 15.1.10.5. Recent Developments; 15.1.10.6. Key Management Personnel
16. Strategic Recommendations/Action Plan: 16.1. Key Focus Areas; 16.2. Target Vehicle Type; 16.3. Target Provider Type
17. About Us & Disclaimer: (Note: The companies list can be customized based on the client requirements.)