Vietnam Consumer Loans Market

1. STUDY ABOUT CONSUMER LOAN MARKET IN VIETNAM BY DI-MARKETING (www.di-onlinesurvey.com) Jun, 2016

2. 1 SCOPE OF WORK  This survey was conducted to study about consumer loan market in Vietnam  Methodology: Online survey  Fieldwork time: 3 days (19/06/2016 to 21/06/2016)  Sample size: N = 1000  Geography: Nationwide

3. 2 KEY FINDINGS • Vietcombank, BIDV & Vietinbank are top 3 well-known loan service providers in Vietnam • WOM and salesman’s consultancy are main sources of brand awareness • Home credit (PPF) is the market leader of Vietnam consumer loan service • Simple registration procedure is the main reason for choosing this kind of service • Buy mobile phone and house/apartment are main purposes for applying consumer loan • By offering more promotion programs, like gifts and vouchers, consumer loan service brands can make their customer happier • 90% users get installment consumer loan and 26% use 12-months-installment • 46% borrow $250.1 - $1000 per times • 28% users have used pawn service and mobile phone & bike are put in pawn the most

4. 3 N = 1000 DEMOGRAPHIC INFORMATION GenderAge OccupationLiving Place 8% 2% 2% 7% 12% 12% 13% 44% Others Job seeker/Retired Housewife Factory Worker Self-employed Engineer/Doctor/Teacher Student Office staff 15% 17% 29% 35% 3% Over 35 30-35 26-30 18-25 Under 18 35% 65% Male Female 31% 2% 2% 5% 16% 45% Others Cần Thơ Hải Phòng Đà Nẵng Hà Nội Hồ Chí Minh

5. 4 1% 12% 22% 24% 25% 28% 30% 31% 32% 35% 35% 36% 39% 40% 40% 45% Others ACS ANZ HD Saison Prudential Finance FE Credit (VPBank) HSBC ACB Đông Á Home Credit (PPF) Techcombank Agribank Sacombank Vietinbank BIDV Vietcombank Total 1% 13% 27% 27% 32% 30% 35% 35% 36% 40% 35% 31% 42% 36% 34% 42% Hồ Chí Minh 1% 8% 25% 16% 20% 17% 34% 35% 32% 22% 50% 45% 43% 61% 55% 62% Hà Nội 1% 13% 14% 23% 19% 31% 21% 25% 28% 34% 30% 38% 35% 36% 41% 43% Others VIETCOMBANK, BIDV AND VIETINBANK ARE TOP 3 WELL-KNOWN CONSUMER LOAN SERVICES IN VIETNAM Do you know any consumer loan services listed below? N = 1000 N = 450 N = 157 N = 393 Techcombank is more well-known in Hanoi

6. 5 1% 12% 22% 24% 25% 28% 30% 31% 32% 35% 35% 36% 39% 40% 40% 45% Others ACS ANZ HD Saison Prudential Finance FE Credit (VPBank) HSBC ACB Đông Á Home Credit (PPF) Techcombank Agribank Sacombank Vietinbank BIDV Vietcombank Total 1% 9% 15% 17% 18% 23% 23% 29% 32% 29% 33% 35% 38% 40% 38% 45% Under 18-25 1% 16% 26% 30% 26% 31% 32% 30% 32% 43% 36% 34% 40% 41% 43% 47% 26-30 2% 14% 26% 29% 33% 38% 37% 37% 37% 40% 37% 44% 44% 41% 45% 46% 30-35 1% 11% 27% 23% 32% 24% 32% 30% 27% 30% 37% 33% 37% 36% 35% 43% Over 35 VIETCOMBANK, BIDV AND VIETINBANK ARE TOP 3 WELL-KNOWN CONSUMER LOAN SERVICES ACROSS ALL AGE GROUPS Do you know any consumer loan services listed below? N = 1000 N = 385 N = 291 N = 172 N = 152

7. 6 4% 20% 25% 26% 26% 26% 27% 28% 31% 37% 47% Others See others use these brands I know through sms advertising messages/ email Web, forum ads Consultancy of staffs of financial companies at sales points TV ads Facebook ads In/ Out of home ads Poster, flyer Consultancy of salesman Friends/relatives' suggestion Total 4% 20% 26% 26% 23% 20% 26% 25% 29% 38% 43% Hồ Chí Minh 3% 19% 25% 32% 31% 38% 35% 39% 35% 38% 58% Hà Nội 5% 21% 22% 24% 27% 28% 25% 26% 32% 36% 46% Others FRIENDS/ RELATIVES’ SUGGESTION & SALESMAN’S CONSULTANCY ARE 2 MAIN SOURCES OF AWARENESS NATIONWIDE How do you know these service providers? N = 1000 N = 450 N = 157 N = 393

8. 7 4% 20% 25% 26% 26% 26% 27% 28% 31% 37% 47% Others See others use these brands I know through sms advertising messages/ email Web, forum ads Consultancy of staffs of financial companies at sales… TV ads Facebook ads In/ Out of home ads Poster, flyer Consultancy of salesman Friends/relatives' suggestion Total 3% 18% 20% 26% 22% 26% 29% 29% 28% 31% 42% Under 18-25 6% 23% 27% 27% 27% 25% 28% 25% 35% 40% 48% 26-30 7% 24% 29% 26% 33% 29% 25% 30% 37% 45% 56% 30-35 3% 16% 27% 23% 27% 26% 24% 26% 28% 36% 45% Over 35 AGAIN, WOM & SALESMAN’S CONSULTANCY ARE 2 MAIN CHANNELS OF AWARENESS ACROSS ALL AGE GROUPS How do you know these service provider? N = 1000 N = 385 N = 291 N = 172 N = 152

9. 8 55% 63% 48% 46% 59% 45% 37% 52% 54% 41% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Total Under 18-25 26-30 30-35 Over 35 Yes No 45% HAVE USED CONSUMER LOAN SERVICES Have you ever used consumer loan service? N = 1000 N = 385 N = 291 N = 172 N = 152 Under 18~25 group uses consumer loan service more than other groups

10. 9 3% 3% 4% 4% 6% 10% 12% 59% Others I cannot prove my income High service fee Complicating procedure Cannot control my consumption Be concerned about paying debt ability High interest I have no demand Total 3% 3% 1% 6% 6% 11% 11% 58% Under 18-25 3% 2% 6% 4% 9% 9% 17% 48% 26-30 4% 4% 4% 0% 7% 7% 8% 67% 30-35 0% 4% 5% 4% 1% 9% 9% 69% Over 35 BESIDE DEMAND, HIGH INTEREST IS ANOTHER MAIN REASON FOR NOT USING CONSUMER LOAN SERVICES If you haven't used consumer loan service yet, why didn't you use this service? N = 550 N = 144 N = 151 N = 93 N = 62

11. 10 0% 1% 1% 1% 1% 3% 3% 1% 0% 15% 5% 7% 23% 11% 22% 4% Hà Nội 0% 1% 3% 3% 4% 5% 5% 5% 5% 6% 7% 10% 10% 11% 12% 13% Others ANZ ACB Techcombank Prudential Finance Đông Á HSBC HD Saison ACS Vietinbank Sacombank FE Credit (VPBank) BIDV Agribank Vietcombank Home Credit (PPF) Total 1% 1% 4% 2% 5% 5% 6% 8% 7% 3% 9% 12% 5% 7% 6% 16% Hồ Chí Minh 0% 0% 2% 5% 3% 5% 5% 3% 6% 5% 5% 8% 10% 17% 14% 14% Others OVERALL, HOME CREDIT (PPF) IS THE MARKET LEADER OF CONSUMER LOAN INDUSTRY IN VIETNAM If you have used consumer loan service already, which service provider do you use the most frequently? N = 450 N = 202 N = 73 N = 175 Saigonese prefers Home Credit and FE Credit Hanoian chooses Vietcombank and BIDV

12. 11 0% 1% 3% 3% 4% 5% 5% 5% 5% 6% 7% 10% 10% 11% 12% 13% Others ANZ ACB Techcombank Prudential Finance Đông Á HSBC HD Saison ACS Vietinbank Sacombank FE Credit (VPBank) BIDV Agribank Vietcombank Home Credit (PPF) Total 0% 1% 1% 5% 2% 4% 2% 3% 8% 8% 7% 11% 13% 11% 13% 10% Under 18-25 0% 1% 1% 2% 3% 5% 5% 3% 5% 6% 7% 12% 7% 13% 13% 17% 26-30 1% 1% 5% 2% 8% 6% 3% 10% 4% 1% 6% 8% 12% 11% 10% 12% 30-35 3% 0% 6% 3% 5% 2% 15% 10% 2% 8% 6% 3% 6% 10% 10% 11% Over 35 OVERALL, HOME CREDIT, VIETCOMBANK AND AGRIBANK ARE TOP 3 CONSUMER LOAN SERVICES PROVIDER If you have used consumer loan service already, which service do you use the most frequently? N = 450 N = 144 N = 151 N = 93 N = 62 Under 18-25 uses Vietcombank and BIDV the most 26~35 group prefers Home Credit Over 35 group chooses HSBC

13. 12 VIETCOMBANK GAINS HIGHEST BRAND AWARENESS WHILE HOME CREDIT (PPF) GAINS HIGHEST MARKET SHARE Which brands do you know? Which brands do you use the most ? 45% 40% 40% 39% 36% 35% 35% 32% 31% 30% 28% 25% 24% 22% 12% 1% 12% 10% 6% 7% 11% 3% 13% 5% 3% 5% 10% 4% 5% 1% 5% 0% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Awareness Usage N = 1000

14. 13 Vietcombank Agribank FE Credit (VPBank) BIDV Home Credit (PPF) VIETCOMBANK GAINS HIGHEST BRAND AWARENESS WHILE HOME CREDIT (PPF) GAINS HIGHEST MARKET SHARE Which service provider do you know? Which service provider do you use the most ? Low Low High High Usage Awareness .

15. 14 6% 24% 24% 25% 26% 26% 28% 29% 30% 32% 33% 34% 34% 38% Others Low service fee Have many promotions Extentive POS network Salesman suggestion Don't need to mortgage Good customer service Low interest Friends/ relatives recommendations Clear and simple loan policy Enthusiastic consultant Reliable Fast approving time Simple registration procedure Total SIMPLE REGISTRATION PROCEDURE IS THE MAIN REASON FOR CHOOSING THIS KIND OF SERVICE Why do you choose this service provider? N = 450

16. 15 6% 24% 24% 25% 26% 26% 28% 29% 30% 32% 33% 34% 34% 38% Others Low service fee Have many promotions Extentive POS network Salesman suggestion Don't need to mortgage Good customer service Low interest Friends/ relatives recommendations Clear and simple loan policy Enthusiastic consultant Reliable Short approving time Simple registration procedure Total 8% 19% 19% 31% 39% 31% 24% 22% 15% 27% 32% 24% 42% 42% Home Credit (PPF) 9% 25% 26% 25% 25% 21% 30% 30% 32% 38% 36% 45% 30% 49% Vietcombank 2% 31% 29% 16% 16% 24% 25% 33% 39% 29% 20% 43% 27% 24% Agribank PPF = SIMPLE + FAST APPROVING / VCB* = SIMPLE + RELIABLE AGRIBANK = RELIABLE + RECOMMENDED BY FRIENDS/ RELATIVES Why do you choose this service provider? N = 450 N = 59 N = 53 N = 51 * VCB : Vietcombank

17. 16 6% 24% 24% 25% 26% 26% 28% 29% 30% 32% 33% 34% 34% 38% Others Low service fee Have many promotions Extentive POS network Salesman suggestion Don't need to mortgage Good customer service Low interest Friends/ relatives recommendations Clear and simple loan policy Enthusiastic consultant Reliable Fast approving time Simple registration procedure Total 2% 23% 20% 23% 18% 25% 43% 30% 43% 48% 39% 43% 34% 34% BIDV 5% 16% 19% 19% 21% 28% 14% 16% 28% 14% 28% 12% 30% 33% FE Credit BIDV = CLEAR & SIMPLE LOAN POILICY FE CREDIT = SIMPLE PROCEDURE Why do you choose this service provider? N = 450 N = 44 N = 43

18. 17 70% USERS ARE SATISFIED WITH THEIR CURRENT CONSUMER LOAN SERVICE PROVIDER How do you feel with your current consumer loan service? 0% 0% 0% 0% 0% 2%2% 0% 0% 5% 4% 5% 28% 15% 20% 40% 27% 36% 47% 55% 55% 33% 53% 44% 23% 30% 25% 23% 16% 14% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Very satisfied Satisfied Normal Unsatisfied Very unsatisfied N = 450 N = 53 N = 44 N = 43 N = 51 N = 59 Vietcombank has highest top box consumers’ satisfaction level with 30%

19. 18 16% 7% 8% 9% 15% 17% 17% 18% 27% 28% Others Customer service is not good Unclear loan policy Unenthusiastic consultant Sparse POS network Complicated register procedure Low approving time High service fee High interest Not many promotions Total BY OFFERING MORE PROMOTION PROGRAMS, CONSUMER LOAN SERVICES CAN MAKE THEIR CUSTOMER HAPPIER Is there anything that makes you unhappy about your current consumer loan service? N = 450

20. 19 16% 7% 8% 9% 15% 17% 17% 18% 27% 28% Others Customer service is not good Unclear loan policy Unenthusiastic consultant Sparse POS network Complicated register procedure Long approving time High service fee High interest Not many promotions Total 12% 5% 3% 10% 14% 15% 3% 15% 32% 39% Home Credit (PPF) 25% 4% 6% 6% 17% 13% 25% 15% 19% 17% Vietcombank 12% 14% 10% 10% 20% 29% 20% 12% 18% 16% Agribank HOME CREDIT = NOT MANY PROMOTIONS/ VCB* = SLOW APPROVING AGRIBANK = COMPLICATED PROCEDURE Is there anything that makes you unhappy about your current consumer loan service provider ? * VCB : Vietcombank N = 450 N = 59 N = 53 N = 51

21. 20 16% 7% 8% 9% 15% 17% 17% 18% 27% 28% Others Customer service is not good Unclear loan policy Unenthusiastic consultant Sparse POS network Complicated register procedure Low approving time High service fee High interest Not many promotions Total 11% 5% 9% 7% 20% 23% 20% 23% 16% 45% BIDV 5% 9% 16% 9% 7% 14% 23% 16% 49% 28% FE Credit BIDV = NOT MANY PROMOTION + HIGH SERVICE FEE FE CREDIT = HIGH INTEREST + NOT MANY PROMOTION Is there anything that makes you unhappy about your current consumer loan service? (chosen in Q8) N = 450 N = 44 N = 43

22. 21 3% 9% 0% 0% 0% 8% 34% 30% 32% 38% 37% 37% 10% 7% 7% 2% 12% 12% 40% 35% 45% 49% 41% 41% 12% 19% 16% 11% 10% 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% I will use this service only I will prefer using this service in priority I will use this service parallel with other service I will continue use this service, but I will use other in the future I will switch to other service 12% ARE LOYAL WITH THEIR CURRENT SERVICE PROVIDER What is your usage intention towards this consumer loan service provider in the future? Surprisingly, FE Credit owns highest ratio of loyal consumer (19%) as well as switching rate 9% N = 450 N = 43 N = 44 N = 53 N = 51 N = 59

23. 22 Home Credit (PPF) Vietcombank Agribank BIDV FE Credit VIETCOMBANK GAIN HIGHEST USERS’ SATISFACTION WHILE FE CREDIT GAINS HIGHEST USERS’ LOYALTY How do you feel with your current service provider? What is your usage intention towards your service provider in the future? Satisfaction High HighLow Low Loyalty .

24. 23 75% WILL INTRODUCE THEIR CURRENT BRAND TO OTHERS What is your ability to recommend your brand of consumer loan service to others? (chosen in Q8) 1% 0% 0% 5%3% 2% 5% 9% 21% 9% 30% 18% 31% 26% 46% 60% 41% 51% 42% 40% 29% 30% 30% 29% 22% 21% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Total Vietcombank BIDV Agribank Home Credit (PPF) FE Credit I will recommend definitely I will recommend I may recommend I will not recommend I will not recommend definitely Vietcombank owns highest top box recommendation level with 30% N = 450 N = 53 N = 44 N = 51 N = 59 N = 43

25. 24 1% 28% 36% 40% 40% 46% 54% Others Free shipping Money collecting at home Bundled special packaged Buy other products with preferential price Lucky spin Gifts, vouchers Total 0% 26% 37% 39% 36% 38% 58% Under 18-25 3% 30% 39% 38% 41% 45% 54% 26-30 1% 31% 29% 47% 43% 52% 56% 30-35 0% 27% 34% 37% 45% 56% 47% Over 35 54% DESIRE TO HAVE GIFTS/ VOUCHERS WHEN USING THIS SEVICE Which services attached with consumer loan do you desire to be offered? Over 35 prefers lucky spin N = 450 N = 144 N = 151 N = 93 N = 62

26. 25 9% 17% 23% 27% 28% 28% 37% Others Furniture Computer Vehicle Electronic household appliance House Mobile phone Total 6% 8% 28% 23% 24% 17% 42% Under 18-25 12% 25% 26% 35% 30% 32% 40% 26-30 14% 17% 18% 29% 29% 24% 40% 30-35 3% 16% 10% 11% 26% 50% 15% Over 35 BUYING MOBILE PHONE AND HOUSE/APARTMENT ARE MAIN PURPOSES FOR APPLYING LOANS What did you buy with these consumer loans? 50% over 35 group uses their consumer loan to buy house N = 450 N = 144 N = 151 N = 93 N = 62

27. 26 6% 18% 30% 90% Others Revolving consumer credit Noninstallment consumer loan Installment consumer loan Total 9% 22% 30% 91% 26-30 9% 22% 30% 91% 26-30 9% 16% 31% 96% 30-35 0% 16% 26% 89% Over 35 90% USERS GET INSTALLMENT CONSUMER LOAN What kind of consumer loan do you often get? N = 405 N = 123 N = 138 N = 89 N = 55

28. 27 7% 5% 7% 4% 16%5% 3% 5% 11% 3%8% 3% 8% 10% 13%10% 7% 8% 11% 18% 10% 12% 11% 8% 5% 20% 17% 26% 22% 13% 26% 28% 26% 25% 23% 15% 24% 11% 11% 10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Total Under 18- 25 26-30 30-35 Over 35 Under $250 $250.1 - $500 $500.1 - $1000 $1000.1 - $1500 $1500.1 - $2500 $2500.1 - $5000 $5000.1 - $10000 Over $10000 46% APPLY FOR LOAN FROM $250.1 TO $1000 When you get installment consumer loan, in the most recently, how much did you get? N = 405 N = 123 N = 138 N = 89 N = 55 7% 6% 4% 4% 10% 27% 5% 0% 3% 3% 6% 29% 8% 2% 3% 10% 16% 24% 10% 2% 10% 11% 13% 16% 10% 7% 10% 10% 23% 2% 20% 12% 22% 33% 23% 2% 26% 32% 34% 23% 6%15% 38% 15% 4% 3% Total Under $200 $200.1 - $450 $450.1 - $700 $700.1 - $1000 $1000 and over N = 405 N = 72 N = 173 N = 88 N = 30 The higher income, the more they borrow N = 42

29. 28 26% USE 12-MONTHS-INSTALLMENT In the most recent loan time, how long is your installment term? 2% 2% 1% 3% 0% 6% 3% 7% 8% 10% 6% 2% 5% 9% 13%8% 6% 9% 11% 8%5% 1% 3% 12% 10% 3% 6% 1% 2% 2% 26% 25% 26% 26% 24% 14% 20% 17% 5% 6% 22% 23% 23% 20% 21% 8% 11% 8% 4% 6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Total Under 18- 25 26-30 30-35 Over 35 3 months 6 months 9 months 12 months 15 months 18 months 24 months 36 months Over 36 months Others N = 405 N = 123 N = 138 N = 89 N = 55

30. 29 28% USERS HAVE PUT SOMETHING IN PAWN Have you ever use pawn services? 72% 74% 64% 70% 82% 28% 26% 36% 30% 18% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Total Under 18-25 26-30 30-35 Over 35 Yes No N = 1000 N = 385 N = 291 N = 172 N = 152

31. 30 11% 13% 16% 26% 38% 48% Car Others Certificate of house/land ownership Laptop Motorbike Mobile phone Total MOBILE PHONE AND BIKE ARE PUT IN PAWN THE MOST If you have used pawn service, what did you put? N = 283

32. 31 20% USERS HAVE APPLIED FOR A HIGH INTEREST LOAN AT PAWNSHOPS/ LENDERS Have you ever applied for a high interest loan at pawnshops/lenders? 81% 83% 72% 84% 88% 20% 17% 28% 16% 12% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Total Under 18-25 26-30 30-35 Over 35 Yes No N = 1000 N = 385 N = 291 N = 172 N = 152

33. 32 CONTACT US • Japan & Taiwan: o Address: 3 Chome-2-6 Kasumigaseki, Chiyoda, Tokyo 100-0013, Japan o Contact person: Mr. Hideyuki Kato (CEO) o Email: hideyuki.kato@di-mktg.com o Contact number: +81 3-5532-3200 • Vietnam: o Address: 9-15, Vincom center, 45A Ly Tu Trong, Ben Nghe ward, District 1, Ho Chi Minh City, Vietnam o Contact person: Mr. Ho Hai Dang (Manager - DI Marketing) o Email: dang.h@di-mktg.com o Contact number: +84 902-73-9944 • Thailand o Address: 246 Time Square Bld., 10th Fl., Room 10/04, Sukhumvit 12-14 Rd. Klongtoey, Bangkok 10110, Thailand o Contact person: Ms. Pimparima Piriyametha (Business Analyst - DI Marketing) o Email: pimparima.p@di-mktg.com o Contact number: +66 96 245 3656

34. 33 CONTACT US • Indonesia: o Address: Jalan Prof Dr Satrio Kav 18, 45th floor AXA Tower, Jakarta 12940, Indonesia o Contact person: Mr. Hendry Pratama (Manager - DI Marketing) o Email: hendry.p@di-mktg.com o Contact number: +65 822 1345 2555 | +62 21 3005 3541 • India: o Address: 10 Anson Road, #14-06, International Plaza, Singapore 079903 o Contact person: Mr. Sujit Kunte (Regional representative) o Email: kunte.sujit@dreamincubator.com.sg o Contact number: +65 9127 7654

Vietnam Consumer Loans Market

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