Both finance companies and banks are promoting consumer lending to capitalise on high demands ahead of the country’s largest holiday Lunar New Year (Tet).
Consumer finance has ample room for growth in Vietnam, however, it is necessary to improve the policy framework to make the sector more attractive to foreign investors, experts said.
Consumer loans have increased sharply in Ho Chi Minh City in recent years, said Nguyen Hoang Minh, Director of the State Bank of Vietnam’s HCM City Branch.
Consumer lending by end May rose 29.7 per cent against the end of 2016, the National Financial Supervisory Commission (NFSC) has said.
Consumer lending has the potential for explosive growth in Vietnam, but this can only happen with significant improvements in consumer satisfaction with credit institutions and loan conditions, experts say.
Bank loans for the property sector are estimated at some VND150 trillion (US$6.7 billion) this year, a 14.2% pickup from a year earlier, according the HCMC Real Estate Association (HoREA).