Developing consumer credit channels in finance compainies under commercial banks in Vietnam

Abstract

The study researches the current developments in consumer credit channels of finance companies under commercial banks (hereafter FCs) in Vietnam during the period from 2014 to early 2020. The focus of this paper is to study 4 typical cases including: (i) Vietnam Prosperity Finance Limited Company (FE Credit); (ii) HD Saison Finance Company Limited (HD Saison) (iii) MB Shinsei Finance Company Limited (Mcredit) and (iv) Saigon - Hanoi Commercial Bank Finance Company Limited (SHB Finance) which are companies that have been launching consumer credit activities in the Vietnamese mar- ket. Based on analyzing current situation and pointing out the limitations in the development of the FCs' consumer credit channels, the authors proposes a few solutions to promote the consumer credit channels to meet diverse needs of individuals and households in the coming time.