The Credit Disbursed in Vietnam Auto Finance Market is expected to reach more than VND 300 Tr during by 2026F owing to the Lower Lending Rates: Ken Research

    Sanjeev kumar

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    • Currently 73.5% of the population in Vietnam uses a smartphone. The country aims to increase the rate to 85% by the end of 2022. 
    • In Vietnam, the total transaction value in the Digital Investment segment is projected to reach $2.88 Bn by 2023 which helps the fin-tech companies to grow further in the country.
    • The taxi services have been increasing in Vietnam thereby increasing the financing of commercial vehicles, which further increases vehicle purchases in the country.

    Digitalization in Vietnam is anticipated: Digitalization in Vietnam is anticipated to rise in the future which will lead to an increase in the Auto Finance market with multiple offline and e-platform players entering the market. Also, the increasing population and growing income levels leading to rising in sales of cars are expected to drive the rise in Auto Outstanding Loans in Vietnam in near future. The Vietnamese Government is planning a motorbike ban after 2030 to reduce traffic congestion and emissions which will increase the selling of more 3W and 4W in the market.

    Growing Disposable Income and Status: As Vietnam is a middle-income economy, the majority of the people are anticipated to choose a longer loan duration owing to the installments being pocket friendly as monthly payments will be lower. Consumer preferences are more likely to shift to purchasing new vehicles with growing disposable income and status. Also, with the growing population and rapid urbanization, LCVs are probable to have higher sales as LCVs are preferred for high volume low bulk cargo majorly for consumer goods, textiles, and more for short distance haulage.

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    Block chain-Powered Financing and Artificial Intelligence: In Vietnam digitization has improved significant workflow enhancements, including faster processing, more reliable document handling, and mitigated risk. These models could help keep vehicles affordable as technology features increase manufacturing and maintenance costs. Also, insurers and banks are piloting a variety of block chain-powered financing solutions, and auto captive lenders are serving as test beds for manufacturer block chains which will increase the capacity of the auto finance industry in Vietnam.

    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



    By Tenure:

    1 year

    2 years

    3 years and more

    By Type of Motor Vehicle:



    By type of commercial motor Vehicle:




    By Type of passenger motor vehicle




    By Type of Lender:




    By Type of Lending Bank:



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    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 insights on the market intelligence, refer to the link below: -

    Vietnam Auto Finance Market Analysis

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    Singapore Auto Finance Market Outlook to 2025

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