Driven by digital penetration and dominance of banks along with a shift in consumer preference from 2W to 4W in the country, Vietnam Auto finance market has seen major growth in the share of commercial vehicles post Covid-19.
Growing Financial Sector: The Pandemic has resulted in the slow growth of Auto Finance where Vietnamese preferred to own a private vehicle to avoid public transportation. With the growing purchasing power of the middle class, the number of customers buying a passenger vehicle increased due to its status symbol among the population. Also, the Vietnamese government fueled the surge in personal vehicles to accommodate the influx of cars & shift away from motorcycles. The economy has flourished with Foreign Direct Investments as the driving force which has increased the stableness and growth of the finance sector.
Lower Interest Rates and more Financial Setups: Vietnam’s auto finance sector has seen a major shift with the lower interest rates by the financial institutions of the country. Vietnam’s government’s aim to shift away from motorcycles has increased the inclination toward buying 4-wheelers. With the rising banks and financial institutions and the entry of captive finance companies offering lower interest rates for vehicle loans, the auto finance industry has seen growth in the past few years.
To learn more about this report, request a free sample copy
Government Initiatives Revamping the Demand: Ministry of Finance in Vietnam had reduced the tax on cars imported from ASEAN to 0%. Also, the government issued the roadmap for the application of emission standards for cars in traffic and imported used cars. There has been a 50% reduction in registration fees for domestically produced or assembled vehicles in Vietnam which has had a major impact on the automotive industry.
Small-Scale Production and Competition with Counterfeit Products: Vietnam has a rising problem with the increasing number of counterfeit auto and auto parts available throughout the country. The counterfeit imitations of popular brands such as Honda and Yamaha result in a negative impact on business due to the lack of quality. Also, Vietnam’s cars are much costlier as compared to neighboring countries such as Thailand and Indonesia. The lack of supporting industries drives up production costs. This eliminates a large segment of the population that are unable to afford a passenger vehicle and lowers the potential profits of the auto financing companies.
Analysts at Ken Research in their latest publication “Vietnam Auto Finance Market Outlook to 2026F- Driven by Digital Penetration and Dominance of Banks along with a Shift in Consumer Preference from 2W to 4W” By Ken Research observed that the Auto Finance market is an emergent market in Vietnam at a rebounding stage from the economic crisis after the pandemic. The rising government policies and the increase in banks and financial institutions, entry of captive finance companies along with growing ride-sharing services are expected to contribute to the market growth over the forecast period. The market is expected to grow at a 23.7% CAGR during 2021-2026F owing to the rise in the economy of the country, increasing interest rates, and new government policies.
Key Segments Covered: –
Vietnam Auto Finance:
By Type of Vehicle financed
New
Used
By Tenure:
1 year
2 years
3 years and more
By Type of Motor Vehicle:
Commercial
Passenger
By type of commercial motor Vehicle:
LMV
MCV
HCV
By Type of passenger motor vehicle
2W
3W
4W
By Type of Lender:
Banks
OEMs/Captives
NBFC
By Type of Lending Bank:
Government
Private
Key Target Audience
Vietnam Auto Industries
Government Bodies & Regulating Authorities
Financial Institutions
Manufacturing Companies
Automobile Distributors
Automobile Dealers and Associations
Investors & Venture Capital Firms
Time Period Captured in the Report:
Historical Year: 2016-2021
Base Year: 2021
Forecast Period: 2022F– 2026F
Major Banks:
Bank for Investment & Development
Vietcom Bank
Sacom Bank
Techcom Bank
Shinhan Bank
Vietnam International Commercial Joint Stock Bank
Vietin Bank
Tien Phong Bank
Woori Bank
Key Topics Covered in the Report
Vietnam Automotive Industry Overview
Vietnam’s Online Auto Finance Market Ecosystem
Business Cycle, Genesis, and Timeline of Vietnam Online Auto Finance Market
Vietnam Auto Finance Value Chain Analysis
Vietnam Auto Finance Market Size, 2021
Vietnam Auto Finance Market Segmentation (by Type of Vehicle Financed, by Type of Motor Vehicle, by Type of Passenger Vehicle, by Type of Commercial Vehicle, by Type of Lenders, by Type of Lending Banks, by Tenure of New and Old Vehicles), 2021
SWOT Analysis of Vietnam Auto Finance Market
Government Regulations of Vietnam Auto Finance Market
Trends and Developments of Vietnam Auto Finance Market
Decision Making Parameter for Selecting Car Loan Vendor
Issues and Challenges in Vietnam Auto Finance Market
Customer Analysis of Auto Finance Market in Vietnam
Competition Overview of Auto Finance Market in Vietnam
Future Outlook and Projections of Auto Finance Market in Vietnam, 2021-2026F
Impact of COVID-19 on Auto Finance Market in Vietnam
Analyst Recommendations for Online Auto- Finance Market in Vietnam
For More Information on the research report, refer to below link: –
Vietnam Auto Finance Market Analysis
Related Reports by Ken Research: –
“This news is provided by the company and the website will not be responsible in any way for the content of this article.”