• 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 Vietnam, the total transaction value in the Digital Investment segment is projected to reach $2.88 Bn by 2023 which helps the fin-tech companies to grow further in the country.
• The taxi services have been increasing in Vietnam thereby increasing the financing of commercial vehicles, which further increases vehicle purchases in the country.

GURUGRAM, India, Nov. 22, 2022 /PRNewswire/ — 

Digitalization in Vietnam is anticipated: Digitalization in Vietnam is anticipated to rise in the future which will lead to an increase in the Auto Finance market with multiple offline and e-platform players entering the market. Also, the increasing population and growing income levels leading to rising in sales of cars are expected to drive the rise in Auto Outstanding Loans in Vietnam in near future. The Vietnamese Government is planning a motorbike ban after 2030 to reduce traffic congestion and emissions which will increase the selling of more 3W and 4W in the market.

Growing Disposable Income and Status: As Vietnam is a middle-income economy, the majority of the people are anticipated to choose a longer loan duration owing to the installments being pocket friendly as monthly payments will be lower. Consumer preferences are more likely to shift to purchasing new vehicles with growing disposable income and status. Also, with the growing population and rapid urbanization, LCVs are probable to have higher sales as LCVs are preferred for high volume low bulk cargo majorly for consumer goods, textiles, and more for short distance haulage.

Blockchain-Powered Financing and Artificial Intelligence: In Vietnam digitization has improved significant workflow enhancements, including faster processing, more reliable document handling, and mitigated risk. These models could help keep vehicles affordable as technology features increase manufacturing and maintenance costs. Also, insurers and banks are piloting a variety of blockchain-powered financing solutions, and auto captive lenders are serving as test beds for manufacturer blockchains which will increase the capacity of the auto finance industry in Vietnam.

Analysts at 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” By Ken Research observed that the Auto Finance market is an emergent market in Vietnam at a rebounding stage from the economic crisis after the pandemic. The rising government policies and the increase in banks and financial institutions, entry of captive finance companies along with growing ride-sharing services are expected to contribute to the market growth over the forecast period. The market is expected to grow at a 23.7% CAGR during 2021-2026F owing to the rise in the economy of the country, increasing interest rates, and new government policies.

Key Segments Covered:-

Vietnam Auto Finance:

By Type of Vehicle financed

• New
• Used

By Tenure:

• 1 year
• 2 years
• 3 years and more

By Type of Motor Vehicle:

• Commercial
• Passenger

By type of commercial motor Vehicle:

• LMV
• MCV
• HCV

By Type of passenger motor vehicle

• 2W
• 3W
• 4W

By Type of Lender:

• Banks
• OEMs/Captives
• NBFC

Request For Free Sample Report @ https://www.kenresearch.com/sample-report.php?Frmdetails=NTk2MDky

By Type of Lending Bank:

• Government
• Private

Key Target Audience

• Vietnam Auto Industries
• Government Bodies & Regulating Authorities
• Financial Institutions
• Manufacturing Companies
• Automobile Distributors
• Automobile Dealers and Associations
• Investors & Venture Capital Firms

Time Period Captured in the Report:

• Historical Year: 2016-2021
• Base Year: 2021
• Forecast Period: 2022F– 2026F

Major Banks:

• Bank for Investment & Development
• Vietcom Bank
• Sacom Bank
• Techcom Bank
• Shinhan Bank
• Vietnam International Commercial Joint Stock Bank
• Vietin Bank
• Tien Phong Bank
• Woori Bank

Key Topics Covered in the Report:-

• Vietnam Automotive Industry Overview
• Vietnam’s Online Auto Finance Market Ecosystem
• Business Cycle, Genesis, and Timeline of Vietnam Online Auto Finance Market
• Vietnam Auto Finance Value Chain Analysis
• Vietnam Auto Finance Market Size, 2021
• Vietnam Auto Finance Market Segmentation (by Type of Vehicle Financed, by Type of Motor Vehicle, by Type of Passenger Vehicle, by Type of Commercial Vehicle, by Type of Lenders, by Type of Lending Banks, by Tenure of New and Old Vehicles), 2021
• SWOT Analysis of Vietnam Auto Finance Market
• Government Regulations of Vietnam Auto Finance Market
• Trends and Developments of Vietnam Auto Finance Market
• Decision Making Parameter for Selecting Car Loan Vendor
• Issues and Challenges in Vietnam Auto Finance Market
• Customer Analysis of Auto Finance Market in Vietnam
• Competition Overview of Auto Finance Market in Vietnam
• Future Outlook and Projections of Auto Finance Market in Vietnam, 2021-2026F
• Impact of COVID-19 on Auto Finance Market in Vietnam
• Analyst Recommendations for Online Auto- Finance Market in Vietnam

For more insights on the market intelligence, refer to the link below:-

Vietnam Auto Finance Market Outlook to 2026F

Related Reports By Ken Research:-

Indonesia Auto Finance Industry Outlook to 2026- Driven by growing digital penetration, evolving vehicle ownership characteristics and rebates by the Government amidst systematically regulated vehicle ownership and financing policies by the regulatory authorities

Increasing Population, growing income levels and recovery of the economy post Covid is leading to a rise in sales of vehicles which is expected to drive the rise in Auto Outstanding Loans in Indonesia. Hence, The Auto Finance Market is in the Growing Phase with Banking Institutions and NBFCs leading the Market and Online Aggregators Platforms entering the Market. And the Introduction of Online Personal Loan Aggregator Platforms in the market to provide ease in vendor selection process like BSP pay, Pesopay are among the top aggregator, Better Technological Infrastructure in the form of growing Auto Finance platforms, digital installment payment system, zero or very less face-to-face dealing, and simpler procedure, e.g. – Kredit Pintarand rising usage of AI and ML, for better Auto lending experience will lead the future growth of the industry. Innovative Business Models such as Subscription Lending & shared ownership may grow in future to increase car financing. The market is still expected to a good growth in Auto Finance Market of Indonesia.

Qatar Auto Finance Market Outlook to 2026F– Driven by Increasing Vehicle Prices and Low-Interest Rate In The Country

Qatar lacks in domestic auto production, thereby importing all automotive vehicles as completely built-up units from different countries. There were 71,289 new vehicles registered in 2021 in Qatar, where private vehicles accounting for more than half of the share. Majority of the cars are financed through dealership which involve finding and connecting with the customers. Qatar Auto Finance Market is in maturity stage as there is moderate growth owing to rising demand for two wheeler vehicle. QNB is leading and oldest Bank in Qatar with maximum contribution in the development of country. Expatriate population has been reducing in the country since last few years as the government is disincentivizing hiring of foreign national, leading to lack of opportunities. This has caused reduction in demand for auto loans by expats and decline in the growth rate of the Qatar auto finance market.

Philippines Auto Finance Market Outlook to 2026- Driven by change in consumer spending, ease in provision of loans, improving technology and government support

Philippines is 2nd fastest growing vehicle market in ASEAN with Commercial vehicles with higher market share and the market has observed the maximum growth in the automotive industry in ASEAN Countries, with automotive loan outstanding growth in the last five years mainly due to population increase and economic growth. The Auto Finance Market is in the Growing Phase with Banking Institutions and NBFCs leading the Market and Online Aggregators Platforms entering the Market with the Introduction of Online Personal Loan aggregator Platforms in the market to provide ease in vendor selection process like BSP pay, Pesopay are among the top aggregator, Better Technological Infrastructure in the form of growing Auto Finance platforms and rising usage of AI and ML for better Auto lending experience will lead the future growth of the industry. Innovative Business Models such as Subscription Lending & shared ownership may grow in future to increase car financing. The market is still expected to a good growth in Auto Finance Market of Philippines.

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Preet Singh
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Preet@kenresearch.com 

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SOURCE Ken Research