![]() Of which, the share of financial companies in total outstanding balance of the economy has grown significantly from less than 1 per cent in 2011 to 16.3 per cent in 2020 equal to about VND130 trillion ($5.65 billion). This attests to the huge potential for development of Vietnam’s consumer credit segment. If the housing-oriented credit was excluded, consumer credit in the country approximated VND0.8 quadrillion ($34.78 billion), making up 8.7 per cent of total outstanding balance of the economy, much lower compared that in regional countries like Malaysia, China, Thailand, Indonesia, and South Korea where consumer credit (excluding housing-oriented credit) represents 15-35 per cent of total outstanding balance. In the past five years, consumer credit (including housing-oriented credit) grew an average 20 per cent annually, deemed as fairly positive over the whole sector’s credit picture. Property-oriented credit came to VND1 quadrillion ($43.47 billion), accounting for 55.5 per cent of the total. The total of consumer credit outstanding balance amounted to about VND1.8 quadrillion ($78.3 billion) by the end of 2020, accounting for 20 per cent of total outstanding balance of the economy, signifying 2.5-fold compared to 2012 (about 8 per cent). Vietnam’s consumer credit has been galloping in the past decade. Hence, consumer lending activities of financial firms have become increasingly transparent. ![]() On that basis, the State Bank of Vietnam (SBV) has enacted concrete regulations to monitor operation of non-banking credit institutions starting with 2008’s Decision No.01/2008/QD-NHNN on opening and terminating operation of representative offices of non-banking credit institutions, and followed by various circulars on lending activities, consumer loans, regulating consumer lending of financial firms, and more. ![]() The country’s regulatory system for the consumer finance market has been constantly improved with increasingly concrete regulations about the operation of financial firms, from Decree No.79/2002/ND-CP back in 2002 on the organisation and operation of financial firms, to 2018’s Decree No.116/2018/ND-CP on credit policies for agriculture and rural development, among others. ![]()
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