Vietnamese buy into interest-free credit for durables

Update: 10:20 | 21/12/2021

Using credit cards to buy consumer durables through installment plans is becoming a common trend, especially among young people.

In early October, when HCMC lifted Covid-19 restrictions, Ngoc Nhu decided to buy a new refrigerator and opted for an eight-month installment plan with zero interest. She had to pay VND1.3 million (US$56) a month.

Vietnamese, into interest-free credit, credit cards, consumer durables, installment plans, common trend, buy now pay later option, increasingly popular way

A person makes purchases using a credit card.

The buy now, pay later option is becoming an increasingly popular way to shop in Vietnam.

According to a recent report by Research & Markets, the gross merchandise value under this form will increase from $207 million in 2020 to $697.1 million this year and over $4.7 billion in 2028.

Ngoc Nhu recently bought several products using installment plans, mainly electronic household appliances. "Usually when I buy something worth over VND5 million, I look for deferred payment with zero percent interest," she says.

FE Credit and Home Credit, which between then hold the lion’s share of the installment plans market in Vietnam, claim to have around 12 million customers each.

Many firms ranging from small fintech companies to large financial institutions entered the installment payment market last year.

In August, e-wallet MoMo announced a tie-up with TPBank to launch a postpaid wallet that gives users a loan of up to VND5 million.

Last week, Nikkei reported that Japanese bank Mizuho would lay out $170 million for a stake in M-Service, the owner of MoMo.

The installment market in Vietnam saw rapid growth over the past year, mainly thanks to young customers and the development of e-commerce.

Many buy now, pay later startups have appeared, including Fundiin, Reepay, Atome, LitNow, and Movi.

According to Research & Markets’ second quarter report, the pandemic has changed consumers’ payment behaviors and is reshaping the payment landscape in Vietnam.

It is expected that the growing attractiveness of the market will attract global players in the next three or four quarters.

Online shopping rises 50 percent in Hanoi during social distancing
Online shopping through e-commerce platforms by consumers in Hanoi rose 30-50 percent in four social distancing periods, according to the city Department of Industry and Trade.
Online groceries shopping booms as HCMC practices social distancing
Many HCMC residents have turned to online shopping for essential goods following a two-week social distancing order across the city, and e-commerce platforms are reporting a boom.
Over 3.7 million orders made in 60 hours of online shopping
“60 hours of online shopping in Vietnam” brought huge incentives to Vietnamese consumers, with over 3.7 million orders made, up 267% compared to the average level in the year.
Year-end shopping season pumps up storage demand
Online sales discounts during the year-end season is pushing up demand for storage in Vietnam with major e-commerce players racing to make deliveries.
Online shopping and electronic payments increase in popularity
Online shopping and electronic payments in Vietnam have become more common in recent years as more of the country's population gains access to the internet, and e-commerce in the 95 million-strong market is set to enter a rapid growth phase in the near future, according to industry experts. 

Source: VnExpress

Bình luận mới vừa được thêm vào. Click để xem
Mới nhấtHay nhấtXếp theo: