- 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 the Vietnamis expected to be the total transaction value in the Digital Investment segment $2.88 billion by 2023, which will help fintech companies continue to grow in the country.
- Taxi services have increased Vietnam This increases the financing of commercial vehicles, which further increases vehicle purchases in the country.
GURUGRAM, India, November 22, 2022 /PRNewswire/ —
digitization on Vietnam is expected: digitization on Vietnam is expected to increase in the future, which will lead to an increase in Auto Finance Market with multiple offline and e-platform players entering the market. The growing population and income levels leading to an increase in auto sales are also expected to drive the increase in outstanding auto loans Vietnam in the near future. The Vietnamese government is planning a motorcycle ban after 2030 to reduce traffic congestion and emissions, which will boost sales of more 3W and 4W in the market.
Growing disposable income and status: As Vietnam is a middle-income economy, the majority of people are expected to opt for a longer loan term as the rates are pocket-friendly as the monthly payments will be lower. Consumer preferences are shifting more toward purchasing new vehicles as disposable income and status increases. With the growing population and rapid urbanization, LCVs are also likely to generate higher sales as LCVs are preferred for high-volume bulk goods, mainly consumer goods, textiles and more for short-distance transportation.
Blockchain-based finance and artificial intelligence: In the Vietnam Digitization has resulted in significant workflow improvements, including faster processing, more reliable document processing, and reduced risk. These models could help keep vehicles affordable as technology features increase manufacturing and maintenance costs. Also, insurers and banks are testing a variety of blockchain-based financing solutions, and auto-captive lenders are serving as testbeds for manufacturer blockchains that will increase the capacity of the auto finance industry Vietnam.
Analysts from 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” Through Ken Research observes that the auto finance market is an emerging market Vietnam in a recovery phase from the post-pandemic economic crisis. Increasing government policies and growth of banks and financial institutions, entry of captive finance companies as well as growing ride-sharing services are expected to contribute to the market growth during the forecast period. The market is expected to grow at a CAGR of 23.7% over the period 2021-2026F due to the upturn in the country’s economy, rising interest rates and new government guidelines.
Key Segments Covered:-
Vietnam car financing:
By type of vehicle financed
- 1 year
- 2 years
- 3 years and more
By vehicle type:
By type of commercial vehicle:
By type of passenger car
By type of lender:
Request a free sample report at https://www.kenresearch.com/sample-report.php?Frmdetails=NTk2MDky
By type of lending bank:
Important target group
- Vietnam auto industry
- government agencies and regulators
- financial institutions
- manufacturing company
- car dealer
- car dealers and associations
- Investors & Venture Capital Firms
Period covered in the report:
- Historical year: 2016-2021
- base year: 2021
- Forecast period: 2022F – 2026F
- Bank for Investment and Development
- Vietcom bank
- Sacom Bank
- Techcom bank
- Shinhan Bank
- Vietnam International Commercial Joint Stock Bank
- Vietnam Bank
- Tien Phong Bank
- Woori bench
Key Topics Covered in the Report:-
- Overview of the Vietnamese automotive industry
- Vietnams Online ecosystem for the auto finance market
- Business Cycle, Genesis and Timeline of Vietnam Online Car Finance Market
- Analysis of the value chain of auto financing in Vietnam
- Auto Finance Market Size in Vietnam, 2021
- Vietnamese Auto Finance Market Segmentation (by type of vehicle financed, by type of motor vehicle, by type of passenger car, by type of commercial vehicle, by type of lender, by type of lending bank, by useful life of new and old vehicles), 2021
- SWOT Analysis of Vietnam Auto Finance Market
- Government Regulations of Vietnam Auto Finance Market
- Trends and developments of the Vietnamese car financing market
- Decision parameters for the selection of the car loan provider
- problems and challenges in Vietnam auto finance market
- Customer analysis of the car financing market in Vietnam
- Competitive Overview of the Auto Financing Market in Vietnam
- Future prospects and forecasts of the auto finance market in Vietnam2021-2026F
- Impact of COVID-19 on the auto finance market in Vietnam
- Analyst Recommendations for the Online Car Financing Market in Vietnam
For more insights on the market insights, please refer to the following link :-
Vietnam Auto Finance Market Outlook to 2026F
Related reports from Ken Research:-
Indonesian Auto Finance Industry Outlook to 2026 – Driven by increasing digital penetration, evolving characteristics of vehicle ownership and government rebates amid systemically regulated vehicle ownership and financing policies by regulators
Growing population, rising income levels and post-Covid economic recovery are leading to an increase in vehicle sales, which is expected to drive the rise in outstanding auto loans Indonesia. Hence, the auto finance market is in the growth stage where banking institutions and NBFCs are leading the market and online aggregator platforms are entering the market. And the launch of online personal loan aggregator platforms in the market to ease the provider selection process like BSP Pay, Pesopay is among the top aggregators, better technological infrastructure in the form of growing auto finance platforms, digital installment payment system, zero or very less face-to-face dealings and simpler procedures , e.g. B. Kredit Pintar, and the increasing use of AI and ML for a better auto lending experience will lead the future growth of the industry. Innovative business models like Subscription Lending & Shared Ownership can grow in the future to increase car financing. The market is expected to continue to see good growth in the auto finance market Indonesia.
Qatar Auto Finance Market Outlook to 2026F – Driven by rising vehicle prices and low interest rates in the country
Qatar Lack of domestic car production, causing all motor vehicles to be imported as complete built-up units from different countries. In 2021, 71,289 new vehicles were registered Qatar, with private vehicles accounting for more than half of the share. The majority of cars are financed through dealerships, which involves finding and connecting with customers. The car financing market in Qatar is in the maturing phase as there is moderate growth due to the increasing demand for two wheelers. QNB is the leading and oldest bank in Qatar with maximum contribution to the development of the country. The foreign population has been declining in the country in recent years as the government discourages hiring foreigners, leading to a lack of opportunities. This has led to a decrease in the demand for auto loans by expats and a decrease in the growth rate of auto loans Qatar auto finance market.
Philippines Auto Finance Market Outlook to 2026 – Driven by changes in consumer spending, easier lending, improved technology and government support
Philippines is the second fastest growing vehicle market in ASEAN with commercial vehicles having higher market share and the market has observed the maximum growth in the automotive industry in ASEAN countries with auto loans growing over the past five years mainly due to population growth and economic growth. The auto finance market is in the growth phase with banking institutions and NBFCs leading the market and online aggregator platforms entering the market with the launch of online personal loan aggregator platforms to simplify the provider selection process such as BSP Pay and Pesopay The top aggregator, Better technological infrastructure in the form of growing auto finance platforms and increasing use of AI and ML for a better auto lending experience will lead the future growth of the industry. Innovative business models like Subscription Lending & Shared Ownership can grow in the future to increase car financing. The market is expected to continue to see good growth in the auto finance market Philippines.
Follow us –
LinkedIn | Instagram | Facebook | Twitter | youtube
Ankur Gupta, Head of Marketing & Communications
SOURCE Ken Research