In the context of the COVID-19 pandemic recurrence, many businesses are trying to overcome the crisis by deciding whether to either “hibernate” or focus on online sales to maintain operations. In addition, many people are having to look to payday loans or pawnshops to survive, including business owners in this time.

According to Vietnamnews, some pawn chains in Vietnam like F88, Vietmoney, Srisawad or Camdonhanh are still expanding their operations during this period despite general market difficulties. Does this mean that demand for short-term loans during this time is an opportunity for pawn chains?

Mr. Trinh Van Phuong, CEO of Vietmoney, said: “With economic difficulties, the risk of delay in loan repayments and asset liquidity also increases. Vietmoney is maintaining growth because the pawn market in Vietnam is still underdeveloped and fragmented. On the other hand, Vietmoney’s business model includes an online platform, so when the pandemic arose, Vietmoney did not need to reorganize operations, or rebuild channels for sales like other businesses. We only had to focus more on our digital channel and expand online campaigns to ensure sales volumes. Currently, asset liquidity in the market is too low (especially for vehicles and real estate), so we have to adjust our products to adapted to the current market situation. However, the most important thing for us is to try to promptly serve the needs of customers during the pandemic, and we must also ensure service quality, including maintaining stable interest rates for our customers".

Vietnam has been successful in controlling the COVID-19 pandemic, but it is forecast that the economy will still be significantly impacted by the global situation. Thus promoting the domestic economy at this time is very important. This is a period for domestic businesses to show their resilience, as well as develop long-term plans to fight prolonged difficulties.

The representative of Vietmoney also said: “To continue operations during this time, we adopted occupational safety solutions. At Vietmoney, asset appraisal is supported by our AI system. Internal processes, such asset management, loan approvals, inventory management, risk management and data analysis are all performed on a unified ERP system that we have developed. Our staff interact through these internal applications that allows us to operate smoothly without regular face to face or onsite meetings”.

With the application of technology from the beginning, Vietmoney recognized that digitizing traditional business and working towards customers' interests is an inevitable trend to maintaining operations in the current period. Mr. Phuong added that “The Online-to-Offline business model is astrategy that Vietmoney has pursued for long-term development, it is not just a temporary policy during the pandemic”.

According to statistics, there are currently over 30,000 pawn shops in operation nationwide in Vietnam, with almost all being registered in the form of household businesses and operating individually. Vietmoney is a pioneering local company, successfully implementing ERP systems for the industry. In addition, the company has transparent lending policies, and a desire to set best standards for the pawn service industry in Vietnam.

Through these changes in the business mindset and professional approach to operations, modern pawn chains in Vietnam may be considered a worthy solution for individuals and micro businesses to meet demand for short term loans.

The Vietmoney pawn chain has been operating since 2016. It is a financial start-up, with an aim to build a convenient financial channel in the subprime segment and change the pawn service industry in Vietnam. In particular, Vietmoney applies technology in its operations and an O2O (Online to Offline) model, providing loans to more 20,000 customers with 16 stores in Ho Chi Minh City. The company also has a nationwide expansion plan.www.vietmoney.vn