VietNamNet Bridge - Commercial banks are planning to take over finance companies to implement plans to develop consumer credit.The Military Bank’s (MB) buying of Song Da Finance JSC (CDFC) has resulted in the establishment of the MB Consumer Finance Company Ltd, an MB subsidiary with chartered capital of VND500 billion. After the deal was approved by the MB extraordinary shareholders’ meeting held on October 6, 2015, MB has become the latest commercial bank in the consumer finance sector. MB jumped into the market segment after realizing that the market has been growing very rapidly in the last 10 years while analysts predicted it would even see higher growth rate - 20-30 percent until 2019. Nguyen Minh Phong, a renowned economist, said he can see the great development potential of the consumer finance market which is reflected in the establishment of a lot of consumer credit divisions under banks and the establishment of a series of finance companies in recent months. A … [Read more...] about Commercial banks eye finance companies
Shriram transport finance company ltd
VietNamNet Bridge - A lot of people have fallen into a trap set by finance companies. Promising simple administrative procedures, but the companies overcharge borrowers with exorbitant interest rtes. Commercial banks, which have been burdened with the high bad debt ratios, have been trying to tighten their lending to control the credit quality. Meanwhile, individuals can easily borrow money from finance companies, if they accept to pay the high interest rates. Dung, an officer of a software firm in Cau Giay district in Hanoi, said he receives a lot of calls from finance companies these days which invite him to borrow money from the companies. A credit officer told him that with the monthly income of VND10 million, he would be able to borrow VND60-100 million without having to mortgage for the loan. Especially, the officer promised to disburse money within 3 days since the day Dung submits necessary documents. "The required formalities are very simple. You just need to show some … [Read more...] about Finance companies offer loans at sky high interest rates
VietNamNet Bridge - PetroVietnam Finance Corporation (PVFC) has finally found an ideal solution for it: "getting married" with a commercial bank - Western Bank. This may trigger a new wave of merging finance companies into banks in the future. With merger deal, Western Bank, PVFC, PetroVietnam have "happy ending" PVFC - Western Bank merger deal goes ahead PVFC, one of the two parties of the deal, late last week still denied the merger deal with Western Bank, saying that the plan has not been approved by the Prime Minister. Meanwhile, Western Bank many times implied that it would merge into the finance company, and that the plan has got the nod from the Prime Minister. It seems that the denial of PVFC has been ignored by investors, who have got uninspiring with similar things. The involved parties in Sacombank takeover affair and Habubank merger into SHB once denied the rumor about the deals, but they finally did exactly the things people thought they … [Read more...] about PVFC-Western Bank deal triggers wave of finance company-bank merger?
Finance companies’ annual reports show that their total assets and profits have decreased sharply. Finance companies’ annual reports show that their total assets and profits have decreased sharply Finance companies “lose weight” The sharpest decrease could be seen at EVN Finance, a subsidiary of the Electricity of Vietnam (EVN), whose total assets plummeted by 5,216.06 billion dong, or HAFIC, whose total assets decreased by 2,372.66 billion dong. The finance company belonging to the Vietnam Coal and Mineral Industries Group also has seen the total assets drop by 820.75 billion dong, while Song Da Finance (SDFC) by 369.47 billion dong. Most finance companies have shrunk themselves in the context of the worsening business environment. The report of a company pointed out that the biggest reason behind the sharp fall of the total assets and profits in 2011 was the sharp decrease of the assets profitable from lending, capital trade and investment … [Read more...] about Finance companies shrink themselves amid worsening circumstances
Management of consumer finance companies to be tightened HCMC – The State Bank of Vietnam (SBV) will closely monitor and inspect the operation of consumer finance companies to ensure a transparent and healthy consumer credit market. Data of SBV shows consumer credit has grown strongly in Vietnam in recent years. The total amount of consumer credit has seen a six-fold increase since 2011 to VND960 trillion (about US$42.3 billion), accounting for 15.7% of total outstanding loans, Thanh Nien newspaper reports. For finance companies alone, the total amount of consumer credit has increased 10 times since 2011 to VND74 trillion, making consumer credit the fastest growing segment with average outstanding loan growth rate of 40% per annum in the last three years. According to a report of the National Financial Supervisory Commission, consumer loans will maintain the high growth momentum in the coming time. The country’s total outstanding consumer loans in the year to end-November … [Read more...] about Management of consumer finance companies to be tightened
NDO – Permanent Vice Chairman of the Ho Chi Minh City People’s Committee, Le Thanh Liem, hosted a reception for Kyle F.Kelhofer, IFC Senior Country Manager of Vietnam, Laos, and Cambodia, who is on a working visit to HCM City, on November 17.On behalf of the municipal leaders, Liem recognised and highlighted the significance of the International Finance Company (IFC)’s financial assistance and investment capital mobilisation activities in Vietnam, to the city’s development process.He asked the IFC to provide further care and support for HCM City in implementing the programmes in regards to the effective attraction, management and use of foreign investment sources for its development projects.HCM City is interested in and values the mobilisation of assistances from international financial investors for its development projects, Liem said, affirming the city’s pledge to create favourable conditions for the IFC to implement cooperation programmes between the … [Read more...] about HCM City boosts cooperation with International Finance Company
Analysts predict a new wave of commercial banks taking over finance companies following a new government decree, according to an article published on the English language news portal VietNamNet Bridge on August 6. Decree No 39, which took effect in late June, will help finance companies become more "attractive". They will be able to issue deposit certificates, short- and long-term bonds, treasury bills, provide guarantees, and issue credit cards. Banks, which are expanding their retail banking market share, are anxious to buy finance companies. … [Read more...] about More banks set to take over finance companies
VietNamNet Bridge - Four commercial banks have taken over finance companies, and other banks are consulting with their shareholders about buying such firms to expand their consumer lending. The four bank deals included Maritime Bank and Vinatex’s Finance Company, Techcombank and Vinachem’s Finance Company, MBBank and Song Da Finance Company and SHB Bank andVinaconex-Viettel Finance Company. Meanwhile, BIDV, one of the largest commercial banks, has submitted a plan to shareholders to obtain a finance company. Either BIDV would buy an existing finance company or shift its existing finance leasing company into a finance company. VietinBank, also a large bank in which the State holds controlling stakes, is considering developing a part of PG Bank into PG Finance. The other banks, ACB, Sacombank and NamA Bank, have submitted to shareholders a plan to establish finance companies of their own with chartered capital of VND500 billion. It is foreseeable that more and more … [Read more...] about Commercial banks rush to buy finance companies
VietNamNet Bridge - Struggling against weak efficiency and a heavy load bad debts, Vietnamese finance companies are finding ways to restructure. Currently, besides six 100 per cent foreign owned companies operating in the field of consumer credit, Vietnam has 12 state-owned finance companies established in late 1990s. However, the companies, which are the subsidiaries of state groups and commercial banks, have been mainly serving the operation of the parent groups, and are not allowed to provide loans to individuals. Until June 30, 2012, the bad debt of finance companies made up 12.27 per cent of outstanding loans and 7.2 per cent of the total bad debts in the whole system, according to the National Financial Supervisory Commission. Vu Hoang Chuong, investment and consultant manager of EVN Finance Company under the Electricity of Finance, said that the model of Vietnamese finance companies was inefficient and need restructuring, or perhaps even removed. "Vietnamese finance companies … [Read more...] about Finance companies not up to the task
Following a robust surge in 2014, Vietnam’s Consumer Finance Market in 2015 continued to experience the fastest growth for the past 5 years. The outstanding loan balance soared from $10.5 billion in December 2014 to $15.12 billion at the end of 2015, signifying 44.1 per cent growth.Figure 1: Consumer Loan Balance ($bn), %Consumer Loans/GDP, %Consumer Loans/Loan BookAccording to StoxPlus’s analysis, the robust growth of the Vietnamese Consumer Finance Market resulted from the significant change in customer behaviour and the middle class’respectively high demand for housing loans. The transition in the borrowing behaviour of customers from borrowing from relatives, friends or the informal finance market to more formalized methods at finance companies also had a positive implication on the lending market.Despite the favourable environment, the Vietnamese Consumer Finance Market has become more and more competitive with an increasing number of participants. Indeed, the … [Read more...] about FinTech – Solution or Challenge to Vietnamese Consumer Finance companies?