One FE CREDIT consulting booth. The company’s recent contract with Credit Suisse promised a development strategy to benefit domestic clients. (Photo: vayvontinchap.com)Hanoi (VNS/VNA) - Researchersat the Vietnam National University (VNU) – Hanoi have presented results of aconsumer lending survey showing that the majority of Vietnamese people havenever used a consumer loan.
Consumers’relative lack of loan access represents both a challenge and an opportunity, asprevious studies around the world have shown that consumer lending is animportant instrument to boost consumption and contribute to macro economicdevelopment, said Hoang Van Hai, Dean of the School of Business Administration underthe University of Economics and Business, VNU-Hanoi. With more than 90million people, Vietnam is considered one of the countries with great potentialfor consumer finance. The question now is how to tap this potential.
TheVNU surveyed more than 2,000 consumers in 12 provinces to show that althoughthe majority of people are hesitant to contact financial companies for consumerfinancial services, a growing number of young consumers are in dire need of it.
Upto 29.8 percent of survey participants expressed a high level of willingness toborrow from credit institutions for consumption should the need arise. However,62.4 percent of people who responded to the survey have never used consumerloans, due to lack of need and concerns over loan conditions. The rest ofrespondents said they were disinterested in consumption loans unless they faceddire need.
Accordingto Hai, Vietnam’s consumer lending market in recent years has begun to growgradually and surely, with more participation from service providers and demandfor consumer loans has also increased significantly.
However,the market for consumer loans in Vietnam is smaller than it could be. Thelimited number of credit and consumer lending organizations account for only 5to 10 percent of total national credit balance, compared to 40 to 50 percent indeveloped countries.
Nearly100 percent of participants in the survey are aware of commercial banks, and65.55 percent are ready to borrow from them, while the same numbers for creditinstitutions are 92.93 percent and 30.53 percent, respectively.
Atthe moment, white collar and blue collar workers are more likely to borrow fromcredit institutions than from commercial banks, while farmers are least likelyto do the same.
TheVNU found that despite supposed service quality issues at consumer financecompanies, customers who have taken out loans from financial companies arerelatively satisfied with their financial products, as well as with theborrowing procedures. Consumers’ satisfaction with the cost of borrowing isrelatively lower than their satisfaction with other factors, such as servicequality.
Meanwhile,underground credit markets still exist and attract a large number of people toparticipate.
Basedon customer assessments and in conjunction with the criteria for assessingcredit institutions’ service capabilities, several names shone as highly ratedcredit institutions, including HomeCredit, FE Credit and HD Saison.
Theresearch was presented at a seminar discussing the country’s currentconsumption levels and recommendations for consumers, held by the VNU in Hanoi.
TheVNU’s research also emphasizes the need to raise awareness among Vietnameseconsumers about the use of consumer lending services and to giverecommendations to credit institutions and their stakeholders.
The seminar attractedthe participation of delegates from commercial banks, finance companies,university lecturers, researchers and a number of individuals interested in theresearch topic.-VNA
Consumers’relative lack of loan access represents both a challenge and an opportunity, asprevious studies around the world have shown that consumer lending is animportant instrument to boost consumption and contribute to macro economicdevelopment, said Hoang Van Hai, Dean of the School of Business Administration underthe University of Economics and Business, VNU-Hanoi. With more than 90million people, Vietnam is considered one of the countries with great potentialfor consumer finance. The question now is how to tap this potential.
TheVNU surveyed more than 2,000 consumers in 12 provinces to show that althoughthe majority of people are hesitant to contact financial companies for consumerfinancial services, a growing number of young consumers are in dire need of it.
Upto 29.8 percent of survey participants expressed a high level of willingness toborrow from credit institutions for consumption should the need arise. However,62.4 percent of people who responded to the survey have never used consumerloans, due to lack of need and concerns over loan conditions. The rest ofrespondents said they were disinterested in consumption loans unless they faceddire need.
Accordingto Hai, Vietnam’s consumer lending market in recent years has begun to growgradually and surely, with more participation from service providers and demandfor consumer loans has also increased significantly.
However,the market for consumer loans in Vietnam is smaller than it could be. Thelimited number of credit and consumer lending organizations account for only 5to 10 percent of total national credit balance, compared to 40 to 50 percent indeveloped countries.
Nearly100 percent of participants in the survey are aware of commercial banks, and65.55 percent are ready to borrow from them, while the same numbers for creditinstitutions are 92.93 percent and 30.53 percent, respectively.
Atthe moment, white collar and blue collar workers are more likely to borrow fromcredit institutions than from commercial banks, while farmers are least likelyto do the same.
TheVNU found that despite supposed service quality issues at consumer financecompanies, customers who have taken out loans from financial companies arerelatively satisfied with their financial products, as well as with theborrowing procedures. Consumers’ satisfaction with the cost of borrowing isrelatively lower than their satisfaction with other factors, such as servicequality.
Meanwhile,underground credit markets still exist and attract a large number of people toparticipate.
Basedon customer assessments and in conjunction with the criteria for assessingcredit institutions’ service capabilities, several names shone as highly ratedcredit institutions, including HomeCredit, FE Credit and HD Saison.
Theresearch was presented at a seminar discussing the country’s currentconsumption levels and recommendations for consumers, held by the VNU in Hanoi.
TheVNU’s research also emphasizes the need to raise awareness among Vietnameseconsumers about the use of consumer lending services and to giverecommendations to credit institutions and their stakeholders.
The seminar attractedthe participation of delegates from commercial banks, finance companies,university lecturers, researchers and a number of individuals interested in theresearch topic.-VNA
VNA
