This is the third half-year version in addition to the full-year review report series for Vietnam Consumer Finance Market. Our report provides updated information with emphasis on in-depth analysis of market share and financial performance amongst key players, the development of each product segment, prominent product trends as well as new market entrants’ movements. FULL Report: https://fiinresearch.vn/Store/ReportDetails?id=149705

2. 2
Section Contents Page
Executive Summary 5
1. Updates of Vietnam consumer finance market 6
1.1. Market size and growth 7
1.2 Market segmentation 9
2. Competitive landscape of Finance Companies (FinCos) 11
2.1. FinCos’ operations under the impact of the pandemic 12
2.2. Changes in market positioning 13
2.3. Update on product portfolio development 16
2.4. Analysis of FinCos’ financial performance 26
3. Key themes in the consumer finance sector 34
3.1. Product trend | Buy now pay later 35
3.2. M&A activities during the pandemic time 40
4. Key regulatory changes 42
Table of Contents

3. 3
Some figures were removed in this sample content
0%
20%
40%
60%
80%
100%
0
500
1,000
1,500
2,000
2016 2017 2018 2019 2020 1H2020 1H2021
VNDtrn
Total Outstanding CF Loans (Excluding Inactive FinCos) YoY Growth
0%
20%
40%
60%
80%
100%
2016 2017 2018 2019 2020 1H2020 1H2021
Banks' CF Active FinCos' CF
Consumer finance market, especially by FinCos, remained under the shadow of COVID-19
Source: FiinResearch. Data covering consumer finance of retail banks and active licensed
FinCos.
Source: FiinResearch from SBV’s credit statistics, banks and FinCos’ financial statements.
Source: FiinResearch from SBV’s credit statistics, banks and FinCos’ financial statements.
YTD growth
1H2021
YoY growth
1H2021
CAGR
2016 – 1H2021
CF
Banks’ CF
FinCos’ CF
• The CF market recovered slightly from the slump in 2020 as the market
expanded by 15.4% to VND1,992trn (US$86.2bn), reaching YTD growth
of 7% in 1H2021, much higher compared to the YTD growth of 2.6% in
the same period last year.
• Banks were the main drivers for the growth of the CF sector in 1H2021,
thanks to the expansive branch network which is still allowed to
operate under Circular 16. In addition, banks had better develop their
digital platform, allowing them to have more flexibility during the
pandemic. On the other hand, FinCos was hit harder as many of them
have a limited network and have to utilize the POS network of their
partner. Lockdown orders in major cities made it difficult for FinCos to
meet with customers as many of their distribution partners such as
large retail chains Thegioididong or FPT shop had to close. Their main
customer focus, blue-collared workers, were also among those most
vulnerable with many saw reduced income as the result of prolonged
lockdown orders.
Figure 3: Growth rate of CF market
Figure 1: Total outstanding loans of consumer finance (CF) players Figure 2: Proportion of Banks’ CF and active FinCos
Section 1: Updates of Vietnam consumer finance market
1.1. Market size and growth
+7.0% YTD
(1H2021)
+2.6% YTD
(1H2020)

4. 4
Some figures were removed in this sample content
0%
10%
20%
30%
40%
50%
0
500,000
1,000,000
1,500,000
2,000,000
2016 2017 2018 2019 2020 1H2020 1H2021
VNDbn
Banks' CF YoY Growth
Personal Loans/ Cash Loans &
Others
Vehicles Loans (two and four-
wheeler)
Consumer Durables
Credit Card
0%
20%
40%
60%
0
50,000
100,000
150,000
200,000
2016 2017 2018 2019 2020 1H2020 1H2021
VNDbn
Active FinCos' CF YoY Growth
Housing/ Home Improvement Loans
Vehicles Loans
Credit Card
Personal Loans/ Cash Loans & Others
Source: Estimated by FiinResearch.
Note: Unlicensed lenders (such as ACS Trading), fintech platforms (such as P2P) or alternative
lenders (such as Doctor Dong), micro-credit funds and people’s credit funds are not included in
these figures.
With a portfolio driven by unsecured loans and low-income customers, FinCos loan book
was hardest hit by COVID-19
Source: FiinResearch.
Note: FinCos offer 4 main products: Consumer Durables (Consumer electronics & Home
appliances), Vehicles Loans, Credit Card, and Personal Loans/ Cash Loans and Others.
CAGR (2016 – 2020) = 22.3%
MARKET SEGMENTATION
Source: Estimated by FiinResearch from retail banks’ reported data for retail loans with
consumption purpose.
CAGR (2016 – 2020) = 23.0%
Source: FiinResearch.
Note: Banks offer 4 main products: Housing/Home improvement loan, Vehicle Loans, Credit
Card and Cash Loans in which cash loan include consumer credit for different financing
purposes such as purchases of consumer durables (home appliances and consumer electronics),
personal overdraft, and other purposes (educational/medical/recreational, etc.,)
Figure 7: Market size (VNDbn) of active FinCos, 2016 – 1H2021 Figure 8: Loan proportion by product of active FinCos, 2020 vs. 1H2021
Figure 9: Market size (VNDbn) of Banks’ CF loans, 2016 – 1H2021 Figure 10: Loan proportion by product of Banks’ CF, 2020 vs. 1H2021
Section 1: Updates of Vietnam consumer finance market
1.2. Market segmentation
1H2021
2020
1H2021
2020
-0.1 % YTD
(1H2021)
-0.1% YTD
(1H2020)
+2.9% YTD
(1H2020)
+7.6% YTD
(1H2021)
Banks’CF
FinCos’CF

5. 5
Some figures were removed in this sample content
FE Credit
Home Credit
HD Saison
Mcredit
Mirae Asset
Shinhan Finance
Toyota Financial Services
SHB Finance
JACCS
Viet Credit
Others
Market share loss by FE Credit recaptured by young FinCos
Source: FiinResearch.
Note: Others includes Lotte Finance, Easy Credit (EVN Finance’s consumer finance division), FCCOM, and PTFinance. Market share is calculated based on CF outstanding loans rather than total
customer loans (FinCos’ institutional loans or syndicated loans with parent banks are excluded to better reflect CF loan book and calculate CF market share).
• Market share of FinCos went through significant
change, with the top player of the market - FE Credit
lost 3.5 percentage points.
• While FE Credit still remained as the top FinCo in
the country, it is clear that the pandemic had
exerted a huge impact on the company, as its
strategy to focus on major cities such as Hanoi and
HCMC backfired when cities were put under
lockdown orders and the extensive POS networks
of its partner retail chains in those cities had to
close.
• In contrast, Home Credit regained 0.9% to reach
14.6%, HD Saison inched up to 10.6% and Mcredit
grasped the chance to expand its market share by
1.1 percentage points to 7.5%.
• Amidst pandemic outbreaks, some smaller FinCos had captured the opportunities to catch up.
• Mirae Asset earned its place in the top 5, expanded its market share by 0.3% in 1H2021, recorded YTD growth of 5.2%. Mirae Asset had been
incorporating technologies in their mobile application, allowing customers to complete loan application procedures completely online,
significantly shortening processing time, even incorporated loan application on the website of their partner – FPT Shop. The company also
expanded its products portfolio, and recently, in collaboration with FPT, offered the first leasing product among FinCos.
• Shinhan Finance also increased its market share by 0.3% thanks to its efforts to diversify its product portfolio. Shinhan Finance had expanded its
products to offer CDL, mainly household appliances but the company intended to cooperate with FPT Shop or Nguyen Kim to offer loans for
electronics products. The company also has a plan to launch its credit cards and 2WL products in the near future.
Figure 12: Market share of FinCos, 2020 vs. 1H2021
MARKET SHARE
Section 2: Competitive landscape of Finance Companies (FinCos)
2.2. Changes in market positioning

6. 6
Some figures were removed in this sample content
Personal Loans/ Cash Loans & Others
Vehicles Loans (two and four-wheeler)
Consumer Durables
Credit Card
FinCos made effort to better balance their product portfolio, reducing their dependence on
cash loans
• While cash loan is still the dominant products, FinCos are widening their product portfolio,
especially young FinCos like Mcredit, Mirae Asset or Shinhan Finance.
• Mcredit launched its credit card products in August 2020 and by 1H2021, had credit
cards took up 1.2% of their total loan book. HD Saison also launched their credit card
product at around the same time but recorded much slower growth, only inched up to
0.06% in 1H2021 due to conservative issuance policy.
• Mirae Asset had expanded their CDL proportion in their portfolio while dramatically
reduced their cash loans after cooperated with electronics chains such as FPT shop and
MWG. The company recently launched a leasing product in collaboration with FPT shop
and Compasia and intended to launch a new BNPL product in 3 phases.
• Shinhan Finance recently offered vehicles loans and CDL, each took up 1.9% and 0.1%
respectively in their loan book. The company also had a plan to launch a credit card
product in the future.
Section 2: Competitive landscape of Finance Companies (FinCos)
2.3. Update on product portfolio development
TRANSITION IN PRODUCT PORTFOLIO
Figure 14: Product mix of 7 major FinCos (excl Toyota Financial which focuses on 4WL and SHB Finance which focuses on Cash Loans)
1H2021
2020
2019

7. 7
Some figures were removed in this sample content
Buy Now Pay Later (BNPL) has emerged since the onset of COVID-19 along with the
proliferation of e-commerce and expansion of digital payment systems
▪ Buy now, pay later (BNPL) is a point-of-sale (POS) financing option that allows customers to pay in installments over time, different from a traditional
credit card, where customers pay for their balance at the end of every month. BNPL arrangements are becoming an increasingly popular payment
options thanks to their convenience to consumers and also, the bloom of online shopping and cashless payments.
▪ Fintech has taken the lead of the BNPL market, acting as an independent platform connecting merchants with consumers. Meanwhile, banks and
FinCos have started to respond recently with the launch of a personal credit line to be used for payments.
▪ Advantages of BNPL:
➢ The reduced financial burden for consumers, since BNPL allows them to pay for products and services in installments over time.
➢ Frequently zero-interest or low interest, no annual and hidden fees.
➢ Simplified registration procedures with no or minimal credit check, fast approval.
➢ Expansion of customer base for merchants and credit institutions
Figure 42: BNPL business models
▪ BNPL providers act as middlemen
between customers and merchants.
▪ At checkout, customers choose to pay in
installments and then are redirected to
the BNPL platforms to further proceed.
They can also directly make a purchase
on websites/apps of some BNPL providers
▪ Customers either pay the first installment
or nothing upfront and get the order
straight away.
▪ Credit institutions grant a credit line to
customers via e-wallet platforms who can
use it to pay for goods and services.
▪ Banks and FinCos take advantage of e-
wallet’s growing customer base to expand
their own.
▪ The decision to provide a credit line is
based on the customer’s payment records
on the e-wallet platforms, which reflects
their consumer behavior.
BNPL Platforms Provision of credit line
01 02
Source: FiinResearch.
Section 3: Key themes in the consumer finance sector
3.1. Product trend | Buy now pay later

8. 8
Some figures were removed in this sample content
Ho Chi Minh City Branch
3rd Floor, Profomilk Plaza Building, 51-53 Vo Van Tan Street,
Ward 6, District 3, Ho Chi Minh City, Vietnam
Tel: +84 28 3933 3586/ 85
Head Office
10th Floor, Peakview Tower, 36 Hoang Cau Street,
O Cho Dua Ward, Dong Da District, Hanoi, Vietnam
Tel: +84 24 3562 6962
Dong Le, CFA
Managing Director, Market Research & Consulting Services
T: +84 (024) 3562 6962 (ext. 110)
E: dong.le@fiingroup.vn
Yen Nguyen
Client Advisor, Market Research & Consulting Services
T: +84 (024) 3562 6962
E: yen.nguyen@fiingroup.vn
8
@ 2021 FiinGroup Corporation. All rights reserved.
All information contained in this publication is copyrighted in the name of FiinGroup, and as such no part of this publication
may be reproduced, repackaged, redistributed, resold in whole or in any part, or used in any form or by any means graphic,
electronic or mechanical, including photocopying, recording, taping, or by information storage or retrieval, or by any other
means, without the express written consent of the publisher.
Hong Duc Publisher
FiinResearch is part of FiinGroup, a Vietnam’s leading provider of financial data, business information, industry research
and other data-driven analytics services.
Contact us