Illustrative image (Source: VNA)HCM City (VNA) – Foreign investors havebeen acquiring major stakes in financial companies in Vietnam in recent yearsand the trend is expected to continue in 2017.
Major acquisitions in recent years include JapaneseShinsei Bank’s purchase of 49 percent of MCredit, a financial company of theMilitary Bank, which was renamed the MB Shinsei Consumer Finance Company.
Yukio Nakamura, Vice Chairman of the Shinsei Bank,said the deal will open up opportunities and improve the competitive edge ofthe MB Shinsei in Vietnam.
The State Bank of Vietnam also approved a dealallowing the HCM City Development Bank (HD Bank) to transfer 49 percent of thecharter capital of HDFinance, a HD Bank affiliate, to Japan’s Credit SaisonCorporation.
Katsumi Mizuno, Director of Credit Saison’s InternationalMarket, said Vietnam still holds great potential for personal consumer creditand card services thanks to a young population.
Experts said a wave of similar acquisitions isexpected to take place in 2017 and beyond.
A Japanese partner is negotiating for 49 percent ofthe financial company FE Credit of the VPBank while SHB will soon establish aconsumer financial company after taking over the Vinaconex – Viettel financejoint stock company.
In recent years, the consumer finance sector inVietnam has grown 27 percent and is predicted to maintain the growth until 2020.
The number of rich and middle class people is forecastto double in the next 15-20 years, making Vietnam a lucrative market forconsumer finance.-VNA
