Consumer lending has expanded rapidly this year. (Photo: Internet)
Consumer loans totaled some 357 trillion dong ($15.87 billion) in the Vietnamese banking system at the end of September, representing a 31.49% expansion from the end of 2014, data of the State Bank of Vietnam showed.
On breaking down, total loans for living needs leaped 32.41% in the nine months through September and made up 96.27% of total consumer lending. Those made via credit cards grew 11.41%, accounted for 3.73%.
With such a growth rate, consumer lending accounted for 8.02% of total lending in the system at the end of September, rising from 6.31% a year earlier.
The proportion of consumer lending was similar to that of real estate lending, according to the bank.
The size of Vietnam’s consumer loan market is estimated at $10.4 billion currently, supported by a boom of e-commerce, a local provider of financial information said in a report released in September.
Finance companies are taking a combined 10% share of the consumer loan market. Annual interest rates for consumer loans are high, reaching up to 63%-70%. Home Credit is offering the highest rates while rates offered by ACS Trading and Movibi are the lowest, the firm said.
Economist Nguyen Minh Phong told local media that Vietnam, with a 90-million population, is considered one of the most promising consumer loan markets in the world. In addition, its economy has stably remained on the fast growth track, meaning its people’s income is steady.