Czech’s Home Credit interested in Vietnam’s banking sector
Thanks to Vietnam’s favorable business environment, Home Credit has decided to expand its investments in the country, said its executive chairman.
Czech-based Home Credit, one of the leading consumer finance providers in Vietnam’s market, is interested in tapping into the country’s banking sector, according to Jiri Smejc, Home Credit’s executive chairman.
Overview of the meeting. Source: VGP.
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Home Credit made its first presence in Vietnam in 2005, and currently is the Czech’s company with largest investment in Vietnam to date, serving 500,000 Vietnamese individual customers, informed Smejc.
At the meeting, PM Phuc highly regarded Home Credit’s strong business growth in Vietnam, saying the country is pushing for a greater business environment that has received positive responses from credible international organizations and multinationals.
In this regard, the Vietnamese government gives priority to addressing concerns of the business community, including Home Credit, added Phuc.
Over the past few years, consumer spending in Vietnam has grown significantly and has huge potential for development, presenting valuable opportunities for consumer finance companies, Phuc stated.
Phuc attributed the strong growth to low and stable inflation rate, the country's macro-economic stability and favorable investment and business environments.
The PM also suggested Home Credit could invest in a number of banks operating in Vietnam.
In the coming time, Vietnam would enhance cooperation with Czech in various fields, which is an opportunity for Czech’s investors.
Established in Czech in 1997, Home Credit has grown into one of the leading international multi-channel provider of consumer finance with over US$16.6 billion in assets.
With over 132,400 employees, the group mainly operates in Russia, Czech, Slovakia, China, Vietnam, India and Kazakhstan, serving more than 70 million customers.
In Vietnam, Home Credit has the headquarter in Ho Chi Minh City and representative offices in 10 provinces nationwide. As of present, the company has built a network of 7,000 retail outlets in 63 cities and provinces with 8,500 employees, the company claimed.
According to a Moody’s report, Vietnam`s consumer finance industry grew at a compound annual rate of 41% between 2013 and 2017 on the back of higher personal income and greater penetration of services.
By the end of 2017, total outstanding consumer loans reached over US$5 billion, while the country’s consumer finance market reached VND600 trillion (US$25.87 billion).
Vietnam currently has 18 consumer finance companies, of which six are wholly foreign-owned companies.
FE Credit is the biggest finance firm which holds 48.4% of Vietnam’s market share, followed by Home Credit with 15.7%, HD Saison with 12.3% and Prudential Finance with 8.1%. All the companies have annual two-digit growth rates, according to Momentum Work, revealed Viet Dragon Securities Company’s in its 2018 report.
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