The competition to gain a larger share in the consumer finance market is heating up as rising capital demand before Lunar New Year is an opportunity for both banks and finance companies to boost the business segment.
The State Bank of Việt Nam (SBV) has asked control over real estate loans of credit institutions to be enhanced, especially in areas showing signs of land price fevers.
Last month, property developer Vingroup unveiled plans to sell 20 million non-convertible bonds at VNĐ100,000 (US$4.39) each in two phases without any covered warrants or guaranteed assets.
The country’s credit growth target of 14 per cent set for this year, the same rate as last year, was reasonable and achievable, economists said.
Analysts believe banking credit growth will ease off next year, but since lending activities will mainly be focused on the economy, growth will not be affected.
Credit growth in the next three to five years is forecast to be around 14 per cent per year, lower than the average rate of 18.1 per cent in the 2015-17 period.