Unsecured finance solutions

A customer uses Home Credit’s app. Investment in digitalisation is currently the key for large financial companies to compete and expand their market shares. — Photo thoibaonganhang.vn Large foreign financial groups have actively penetrated the Vietnamese consumer finance market, which has significantly helped accelerate the digitalisation of the country’s financial services. United Overseas Bank Limited (UOB) has recently completed the acquisition of Citigroup’s consumer banking business in Viet Nam, which includes Citibank’s unsecured and secured lending portfolios, wealth management and retail deposit businesses. Not only UOB, multinational financial groups from countries in the Asian region are also strongly promoting mergers and acquisitions (M&A), capital contributions in Vietnamese commercial banks to promote their consumer lending activities. There has been recent information that Japan's Sumitomo Mitsui (SMBC) has reached a number of agreements to buy more than 1 … [Read more...] about Foreign investors expand consumer finance business in Viet Nam

A customer uses Home Credit’s app. Investment in digitalisation is currently the key for large financial companies to compete and expand their market shares. (Photo thoibaonganhang.vn) Hanoi (VNS/VNA) - Large foreign financial groups have actively penetrated the Vietnamese consumer finance market, which has significantly helped accelerate the digitalisation of the country’s financial services. United Overseas Bank Limited (UOB) has recently completed the acquisition of Citigroup’s consumer banking business in Vietnam, which includes Citibank’s unsecured and secured lending portfolios, wealth management and retail deposit businesses. Not only UOB, multinational financial groups from countries in the Asian region are also strongly promoting mergers and acquisitions (M&A) and capital contributions in Vietnamese commercial banks to promote their consumer lending activities. There has been recent information that Japan's Sumitomo Mitsui (SMBC) has reached a number of … [Read more...] about Foreign investors expand consumer finance business in Vietnam

TASConnect’s platform provides increased visibility of commercial trade data, which allows traditional financiers to make better credit decisions when offering supply chain financing solutions.— Photo provided by the agency Singapore-based TASConnect is looking to address Viet Nam’s underserved supply chain finance market, which is forecast to reach US$35 billion by the end of 2024, the company said in a statement. TASConnect, a SaaS supply chain fintech platform incubated through SC Ventures - a Standard Chartered innovation, fintech investment and ventures arm, appointed Valiant Co Ltd, as its Viet Nam channel partner to provide strong ground support and smooth deployment of the company’s advanced supply chain fintech solutions. With offices in HCM City and Ha Noi, Valiant is managed by a group of seasoned bankers and technologists with a deep knowledge of Vietnamese banking regulations and market practices. Leveraging its strong local relationships, and capabilities in … [Read more...] about TASConnect strives to tap into VN’s $35 billion supply chain finance market

In Vietnam, local businesses cannot mortgage land use rights (LUR) as security to a foreign lender. But this is allowed in our peer markets, and it is carried out with robust regulation, proper dignity, and thoughtful national protections. So, why are we behind the pack? Darryl Dong-Principal country officer IFC Vietnam Vietnam’s restriction on land security for foreign lenders reduces available funding and increases borrowing costs to local companies. Basically, we are penalising the country and making it less competitive. It also makes it more difficult for the government to supervise foreign financing, since the parties simply find workarounds through complex structures to create security packages for loans because they cannot get on the ground security. In Vietnam, where the non-performing loan (NPL) market is still not developed, this mortgage restriction is a showstopper for foreign NPL investors who want to bring us their capital and expertise. We need to put … [Read more...] about Mobilising international finance for land security

The Nordic Embassies in Vietnam (Denmark, Finland, Norway, and Sweden), have co-operated with the Ho Chi Minh National Academy of Politics to share their experiences on green solutions for circular economy and waste management and policy implications for Vietnam at a seminar held on March 23 in Hanoi. The Nordic Embassies in Vietnam share their experiences on green solutions for circular economy and waste management and policy implications for Vietnam at a seminar held on March 23 in Hanoi. The event, which was held in honor of Nordic Day 2023, aims to provide insight into Nordic policies, initiatives, and innovation in green transition, which can be relevant and applicable to Vietnam in eliminating waste and pollution, circulating products, and regenerating nature. Organised for the fifth time, the event is attended by policymakers from central and local government agencies; representatives from chambers of commerce; business leaders, startups, innovators; … [Read more...] about Nordic countries share solutions for circular economy and waste management

Tran Hoai Nam, deputy general director of HDBank, receives the award from J.P Morgan Chase. — Photo courtesy of HDBank HDBank has won two more coveted international awards adjudged by leading global banking and financial experts for meeting stringent criteria in terms of total assets, net profit, growth index, business orientation, and others. It won The Asset Triple A Award for best bank for sustianable finance in 2022 from The Asset. It also received the 2022 Elite Quality Recognition Award from J.P. Morgan Chase Bank for its MT202 EUR Rate, underlining its exceptional performance in international payment services. The awards continue to underscore HDBank's status in the domestic and international financial markets and its sustainable growth and role as an important capital mobilisation channel, it said. According to The Asset Triple A Awards jury, HDBank has always been at the forefront of environmental, social and governance (ESG) activities - one of the most important … [Read more...] about HDBank gets 2 prestigious awards for sustainable finance, international payments

The Japanese government has launched the Asia Energy Transition Initiative (AETI), which includes knowledge sharing, technology development, and deployment of decarbonisation and $10 billion in financial assistance to push forward green energy transition. Japanese Prime Minister Fumio Kishida also proposed the Asia Zero Emissions Community (AZEC) initiative during his visit to Vietnam last April. The initiative's goal is to achieve both sustainable growth and carbon neutrality amid growing energy demand in Asian countries. The Japanese government is willing to cooperate with ASEAN countries to achieve a pragmatic energy transition by providing financial and technical support for the demonstration and introduction of decarbonisation technologies. As one example, the Ministry of Industry and Trade of Vietnam, the Japanese Embassy to Vietnam, and the JCCI jointly organised a workshop on cooperation between the two countries for the development of power and energy fields focussing on … [Read more...] about JCCI proposes solutions to promote investment in green energy

Under a new deal, IFC is providing a $40 million loan, the first phase of an overall planned $120 million financing package, to help SHB to provide more support for local enterprises and boost their participation in the global supply chain. More than one-third of the funding will be exclusively targeted for women-owned small- and medium-sized enterprises (SMEs), with support from the Women Entrepreneurs Opportunity Facility (WEOF) and the Women Entrepreneurs Finance Initiative (We-Fi) through a performance-based incentive, which encourages financial institutions to provide financing to women-owned small businesses. IFC’s investment is expected to help SHB more than double the number of SME loans as well as the outstanding loan volume for women-owned businesses by 2025. While SMEs are critical to Vietnam’s economy, generating 40 per cent of GDP and 50 per cent of jobs, they are having difficulty accessing finance, with about 62 per cent of total SME financing needs unmet. An IFC … [Read more...] about IFC partners with SHB to boost lending for SMEs

At the signing ceremony on Tuesday. — Photo courtesy of IFC The Sai Gon-Ha Noi Commercial Joint Stock Bank (SHB) has teamed up with the International Finance Corporation (IFC) to increase access to finance for small and medium enterprises (SMEs) in Viet Nam. As part of the agreement signed on Tuesday, IFC is providing a US$40 million loan to SHB, which is the first step towards a total financing package of $120 million. This funding will help SHB support local businesses and enhance their participation in the global supply chain. The investment from IFC is expected to more than double the number of SME loans and outstanding loan volumes for women-owned businesses by 2025. Furthermore, more than one third of the funding will be solely targeted at women-owned SMEs, with support from the Women Entrepreneurs Opportunity Facility (WEOF) and the Women Entrepreneurs Finance Initiative (We-Fi), through a performance-based incentive programme which encourages financial institutions to … [Read more...] about IFC partners with SHB to boost lending for Viet Nam’s smaller businesses

As part of the agreement signed on March 20, IFC is providing a USD 40 million loan to SHB, which is the first step towards a total financing package of USD 120 million. This funding will help SHB support local businesses and enhance their participation in the global supply chain. The investment from IFC is expected to more than double the number of SME loans and outstanding loan volumes for women-owned businesses by 2025. Furthermore, more than one third of the funding will be solely targeted at omen-owned SMEs, with support from the Women Entrepreneurs Opportunity Facility (WEOF) and the Women Entrepreneurs Finance Initiative (We-Fi), through a performance-based incentive program which encourages financial institutions to provide financing to women-owned small businesses. This is particularly important, as SMEs generate 40% of Vietnam's gross domestic product (GDP) and 50% of jobs, yet 62% of total SME financing needs go unmet. An IFC study estimates that Vietnam’s financing gap … [Read more...] about IFC helps boost lending for Vietnam’s smaller businesses