More domestic consumers put purchases on credit
Consumer habits of Vietnamese are changing, with an increasing number looking to purchase their desired products through affordable loans.
Igor Prerovsky, General Director of Home Credit Vietnam, invested by PPF, said at June 3 conference on consumer finance that consumer credit, which helps consumers buy their desired items and pay later, is expanding in Vietnam.
Statistics released by Home Credit showed that around 20% of consumers in the country's southern part make purchases on credit while it accounts for around 10% in the north. These figures are showing signs of increasing.
Prerovsky pointed out that consumer finance is another way to contribute to economic development through boosting purchasing capacity and demand, while enhancing living standards of consumers.
This also helps consumers to form a habit of saving, he added.
In addition, financial companies targeted low-income earners rather than the middle-class, in comparison with retail banks.
Home Credit, with more than 5,000 points of sale in all 63 provinces and cities in Vietnam, said fast, simple and professional services are the core basis for competition in the consumer lending sector but credit safety must be ensured.