Vietnam Auto Finance Market Research Report And Outlook: Ken Research REQUEST FOR SAMPLE REPORT Buy Now Request For sample Report × Report Title Name Email Designation Phone No Comapny Name Comapny URL Country -- Please Select Your Country -- Afganistan Africa Albania Algeria Andorra Angola Anguilla Antigua and Barbuda Argentina Armenia Aruba Asia Australasia Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bonaire Bosnia Herzegovina Botswana Brazil BRICS British Virgin Islands Brunei Darussalam Bulgaria Burkina Faso Cambodia Cameroon Canada Cape Verde Cayman Islands Central African Republic Central and South America Chad Chile China Colombia Comoros Congo Costa Rica Cote d'Ivoire Croatia Cuba Curacao Cyprus Czech Republic Denmark Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Europe European Union Falkland Islands Faroe Islands Fiji Finland France French Guiana French Polynesia Gabon Gambia Georgia Germany Ghana Gibraltar Global Great Britain Greece Greenland Grenada Guadeloupe Guam Guatemala Guerney & Alderney Guinea Guinea-Bissau Guyana Haiti Honduras Hong Kong Hungary Iceland India Indonesia Iran Iraq Ireland Isle of Man Israel Italy Ivory Coast Jamaica Japan Jersey Jordan Kazakhstan Kenya Kiribati Kosovo Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libyan Arab Jamahiriya Liechtenstein Lithuania Luxembourg Macao Macau Macedonia Madagascar Malawi Malaysia Maldives Mali Malta Man (Island of) Marshall Islands Martinique Mauritania Mauritius Mayotte Mexico Micronesia Middle East Minnesota Moldova Monaco Mongolia Monserrat Montenegro Morocco Morroco Mozambique Myanmar Namibia Nepal Netherlands New Caledonia New Zealand Nicaragua Niger Nigeria Niue North America North Korea Norway Oman Pakistan Palau Palestine Panama Papua New Guinea Paraguay Peru Philippines Poland Portugal Puerto Rico Qatar Reunion Romania Russia Rwanda Saint Helena Saint Lucia Saint Martin Saint Pierre and Miquelon Saint Vincent and the Grenadines Samoa Samoa (American) San Marino Sao Tome and Principe Saudi Arabia Scandinavia Senegal Serbia Seychelles Sierra Leone Singapore Sint Maarten Slovakia Slovenia Solomon (Islands) Somalia South Africa South Korea South Sudan Spain Sri Lanka Sudan Suriname Svalbard and Jan Mayen Islands Swaziland Sweden Switzerland Syria Taiwan Tajikistan Tanzania Thailand Timor Leste Togo Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Turks and Caicos Islands Uganda Ukraine United Arab Emirates United Kingdom United States Uruguay Uzbekistan Vanuatu Vatican City Venezuela Vietnam Virgin Islands Western Sahara Yemen Zambia Zimbabwe Requirement Submit What is the Current Potential of Vietnam Auto Finance Market? Vietnam auto finance market has been identified at a growth stage with a growing appetite for passenger and commercial vehicles. The auto finance market has increased to VND ~ trillion in 2018 from VND ~ trillion in 2014 registering a CAGR of ~% during this period. The market is concentrated with fierce competition among auto financing institutions. Majority of credit institutions are located in Hanoi and Ho Chi Minh City, in the northern and southern regions of the Vietnam, as they are the financial and economical hubs of the country. However, the banks and consumer financing companies are projected to develop their presence in the tier 2 cities of the country such as Hai Phong, Da Nang and Bien Hoa s as to expand their customer base. The customers taking hire purchase loans comprise of large scale customers and retail customers. VAMA’s compiles statistical data and issuing publications for this industry. The auto loans outstanding have increased from VND ~ trillion in 2014 to VND ~ trillion in 2018. The number of new automobiles financed increased from ~ in 2014 to ~ in 2018. The auto finance penetration rates for new cars have increased from ~% in 2014 to ~% in 2018 as a result of the above growth factors in the market. Tien Phong Bank has partnered with car showrooms and dealers. Its loan product is also user friendly, has a quick turnaround time and offers a competitive interest rate. Saigon Hanoi Bank has partnered with Truong Hai Auto Company, which holds the largest share in Vietnam’s automobile market and offers varied collaterals and loan amounts up to ~% of the car’s value.The major restraining factors of the market have been low geographical presence, high non-performing loans, increasing price competition, and high operating costs as a result of digitalization. What is the General value chain in Auto Finance market? Banks in Vietnam acquire their clients through multi brand dealerships, original equipment manufacturer (OEM) showrooms (Truong auto, Toyota) and car sharing services (Uber, Grab and Others). The banks conduct a thorough screening process and required documents such as house registration, proof of income, identity proof, car purchase contract and the application of the car loan. Finance institutions quote an interest rate to dealers known as the buy rate. Customers approved for a loan at dealerships and showrooms are quoted an interest rate that can be higher than the buy rate and the dealer keeps the additional interest charged. The dealers are also offered an incentive from various banks for the referral of new customers to their financing institution for auto loans. This incentive is generally in the range of ~% of the interest charged to the customer.Cab Sharing services such as Uber and Grab purchase vehicles in bulk through the OEMs such as Toyota and Hyundai. Since these companies procure a large quantity of vehicles in one transaction, they are offered a discount rate of ~% by the OEMs. Consumer financing companies are rapidly growing in Vietnam by focusing on the low income segment of the population, below a VND ~ million monthly salaries. These companies such HD Saison and TFS compete aggressively by offering interest rates below ~% and loan approvals within ~ minutes with minimal documentation.The primary source for auto financing in Vietnam takes place in banks, accounting for almost ~% of the market in terms of transactions. What are the market segmentations in Vietnam Auto Finance market? By Type of Vehicles: On the basis of credit disbursed for light commercial vehicles registered a CAGR of close to ~% during 2014-2018 comprising of minor share in 2018. On the basis of auto loan outstanding, passenger vehicle recorded a CAGR above ~% while commercial vehicles experienced a CAGR of above ~%. Commercial vehicle finance has led the space by capturing a share of over ~% in 2018. This 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 capturing almost ~% of market share 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 independent consumer finance companies in Vietnam also form part of this segment. By Loan Tenure: On the basis of auto loan outstanding, 5 year loan tenure has been the most popular one capturing more than ~% market share 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. The low average monthly income leads to customers opting for longer loan tenures as they can afford the lower monthly payments. What is the state of the competitive landscape in Vietnam Auto Finance market? The market players are separated into two main categories, that of banks and non banking financial institutions (captive finance companies play a very minimal role in Vietnam’s auto finance industry). Each entity caters to a specific segment of the market, such as passenger cars, commercial vehicles, motorbikes and others. The overall competition stage of the market is fragmented due to the large number of institutions, over ~ players, operating in the market. 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.Cars in Vietnam are ~% costlier as compared to other regional countries such as Thailand and Indonesia. This is due to a special consumption tax, value added tax and registration fees and has restricted the market for auto financing as it lowers the segment of population that can afford a vehicle. Major banks include Vietnam International Bank (VIB), Tien Phong Bank (TPBank), Techcom Bank, Sacom andBank for Investment and Development of Vietnam (BIDV). Banks and Non-banks alike are competing on interest charged, which is a major competing parameter as customers are attracted to low rates.The institutions compete by offering specialized services and schemes that are customer centric. Banks have eased loan application turnaround times, with many banks appraising loans within 8 hours. Companies are focusing on expanding their business to capture a larger customer base and increase their brand recognition. Key Segments Covered:- By Type of Vehicles (Passenger Vehicles and Commercial Vehicles on the basis of Credit Disbursed and Auto Loan Outstanding) By Type of Institutions (Banks & Subsidiaries and Non-Bank Financial Institutes on the Basis of Credit Disbursement) By Loan Tenure (1 Year, 2 Years, 3 Years, 4 Years, 5 and More years on the basis of Volume of Vehicles sold in 2018) 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 2014-2018: Historical Period Financial Year 2019-2024: Future Forecast 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 For More Information on the Research Report, refer to below links: – Vietnam Auto Finance Market Related Reports By Ken Research Indonesia Car Finance Market by Type (New and Used Passenger and Commercial Cars), by Tenure of Loan, by Banks, Captive and Non Captive Institutions – Outlook to 2021 Saudi Arabia Car Finance Market Outlook to 2021 – Rising Used Car Demand and Increasing Focus of Banks on Consumer Finance to Stabilize the Market Growth Contact Us:- Ken Research Ankur Gupta, Head Marketing & Communications support@kenresearch.com +91-9015378249 Tags: Auto Finance Industry In Vietnam, Auto Finance Market In Vietnam, Auto Leasing Market Vietnam, Auto Loan Outstanding Vietnam, Bank Auto Finance Vietnam, Bank For Investment And Development Of Vietnam Auto Finance, BMW Financial Services Market Size, Captive Finance Companies Vietnam, Captives Vietnam Auto Finance, Commercial Vehicle Finance Vietnam, Credit Disbursed Auto Finance Vietnam, Daimler Finance Market Revenue, Domestic Car Manufacturer Vietnam, Industry Research Report Of Vietnam Auto Finance Market, Leasing Market Vietnam, Loan Outstanding Vietnam, Loan Sale Purchase Vietnam, Major Players Auto Finance Vietnam, Market Research Report Of Vietnam Auto Finance Market, Motorbike Loan Vietnam, New Car Finances Vietnam, Non Bank Financial Institutes Auto Finance Vietnam, Non Bank Institutes Vietnam, Old Car Finance Vietnam, Passenger Vehicle Finance Vietnam, Sacom Bank Auto Finance Market Revenue, Shinhan Bank Vietnam Auto Finance, Truck Loan Vietnam, Vietnam Agribank Auto Finance, Vietnam Auto Credit Disbursed, Vietnam Auto Finance Challenges, Vietnam Auto Finance Competitive Scenario, Vietnam Auto Finance Government Regulations, Vietnam Auto Finance Growth Drivers, Vietnam Auto Finance Industry, Vietnam Auto Finance Industry Research Report, Vietnam Auto Finance Interest Rate, Vietnam Auto Finance Major Players, Vietnam Auto Finance Market, Vietnam Auto Finance Market Analysis, Vietnam Auto Finance Market Future Outlook, Vietnam Auto Finance Market Infrastructural Hurdles, Vietnam Auto Finance Market Overview, Vietnam Auto Finance Market Regulatory Hurdles, Vietnam Auto Finance Market Research Report, Vietnam Auto Finance Market Revenue, Vietnam Auto Finance Market Tax Implications, Vietnam Auto Finance Swot Analysis, Vietnam Auto Loan Analysis, Vietnam Auto Loan Disbursed, Vietnam Auto Loan Institutions, Vietnam Auto Loan Market, Vietnam Auto Loan Outstanding, Vietnam Car Finance Ecosystem, Vietnam Car Finance Future Growth, Vietnam Car Finance Value Chain, Vietnam Car Loan Market Forecast, Vietnam Car Loan Trends, Vietnam Commercial Car Finance Product, Vietnam International Bank Auto Finance, Vietnam Saigon Hanoi Bank Auto Finance, Vietnam Techcombank Auto Finance, Vietnam Tien Phong Bank, Vietnam Vietcombank Auto Finance, Vietnam Vietinbank Auto Finance