Vietnam Alternative Lending Business Report 2023: An $818.7 Million Market by 2027 - Global Digital Lending Platforms are Expanding into the Vietnamese AL Segment

DUBLIN, Dec. 4, 2023 /PRNewswire/ -- The "Vietnam Alternative Lending Market Business and Investment Opportunities Databook - 75+ KPIs on Alternative Lending Market Size, By End User, By Finance Model, By Payment Instrument, By Loan Type and Demographics - Q2 2023 Update" report has been added to  ResearchAndMarkets.com's offering.

Alternative lending market in Vietnam is expected to grow by 32.8% on an annual basis to reach US$404.7 million in 2023. 

Medium to long term growth story of alternative lending in Vietnam remains strong. Alternative lending adoption is expected to grow steadily over the forecast period, recording a CAGR of 19.3% during 2023-2027. The alternative lending market in the country will increase from US$304.7 million in 2022 to reach US$818.7 million by 2027.

The growing domestic fintech ecosystem, coupled with the expansion of regional and global players, is aiding the competitive landscape as well as the growth of the alternative lending industry in Vietnam. The expanding buy now pay later market is also supporting the industry growth, as more consumers turn to affordable and flexible short-term lending solutions in the Southeast Asian market.

Going forward, a rising number of small and medium-sized enterprises are also expected to turn to alternative lenders in Vietnam, as access to traditional credit becomes difficult and expensive. Overall, the Vietnamese alternative lending sector is poised to record strong growth over the next five years, on the back of rising credit demand among consumers as well as businesses.

Alternative lenders are optimistic to record strong growth in the SME financing sector in Vietnam

To achieve higher production capacities and compete with global multinationals, a growing number of SMEs are seeking adequate funding and working capital. Alternative lending providers are foreseeing growth in the sector. Even regional players have expanded their offerings in the Vietnamese market to lend unsecured loans to SMEs.

Funding Societies, a Singapore-based SME-focused financing platform, entered the Vietnamese market in 2022. Since its expansion, the firm had facilitated more than US$70 million of financing to SMEs across different industry verticals, including agriculture, services, and construction, among others. In 2023, the firm is projecting strong growth, as the demand for credit and working capital remains robust among SMEs.

Funding Societies is not the only regional player operating in the Vietnamese alternative lending segment. Validus, another Singapore-based SME financing platform, operates in Vietnam and has a strong foothold in the market. From the short to medium-term perspective, the publisher expects more regional players to expand in the country to tap into the future growth potential of the market.

Global digital lending platforms are expanding their presence in the Vietnamese alternative lending segment

With the market poised to record strong growth over the next five years, amid higher credit demand among businesses and consumers, foreign players are expanding their geographical presence in the Southeast Asian region, including Vietnam.

In February 2023, Lentra, an India-based digital lending platform, announced that it has entered the Indonesian market. The foray into the Southeast Asian region comes on the back of a US$60 million fundraising, which was led by Bessemer Venture Partners, Citi Ventures, and SIG. In addition to Indonesia, the firm has also forayed into the Philippines and Vietnamese markets. With this expansion, it plans to reach US$100 million in annual recurring revenue by March 2024.

Launched in 2019, the firm provides application programming interface-driven modular architecture to create business and retail-focused loan products for banks and other regulated lending firms. In India, Lentra had entered into strategic collaborations with 60 banks and non-banking financial institutions. Since its inception, the firm had processed over 50 million loans. Over the next few years, it plans to onboard more partners and expand operations in five countries.

In Vietnam, as the market continues to record strong growth, the publisher expects more global players to expand their presence in the Vietnamese alternative lending industry from the short to medium-term perspective.

The expanding buy now pay later market to aid the growth of the alternative lending industry in Vietnam

The buy now pay later ecosystem is expanding at a rapid rate in Vietnam and the trend is projected to further continue over the next five years. To accelerate market growth, BNPL providers such as Fundiin are also raising funding rounds from venture capital and private equity players. Fundiin, for instance, raised US$5 million as part of its Series A round that was led by Trihill Capital and ThinkZone Ventures.

In addition to capital rounds, these players are also forging strategic alliances to launch BNPL schemes on different online and offline platforms. With the wider availability of the payment method, the adoption among consumers is poised to record strong growth from the short to medium-term perspective. Consequently, the publisher expects the growing BNPL ecosystem to aid the growth of the alternative lending industry in Vietnam over the next three to four years.

Embark on a detailed exploration of the alternative lending market with our latest report, dissecting key economic indicators to provide a holistic view of this dynamic landscape. Delve into the alternative lending market's expansive horizons, from overall market size and forecasts to granular analyses of end-user segments, diverse finance models, and payment instrument intricacies.

This report helps in navigating the nuanced relationships between payment instruments and lending models, offering a detailed breakdown of transaction dynamics. Uncover the multifaceted nature of loans, from personalized B2C offerings like payroll advances to strategic B2B solutions like lines of credit. Complementing these insights, delve into consumer attitudes and behaviors, decoding the impact of age, income, and gender on financial choices.

This report provides a thorough knowledge of alternative lending market dynamics, market size and forecast with more than 75+ KPIs. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.

Scope

Vietnam Alternative Lending Market Size and Forecast by Loan Types

• B2C Loans
• Personal Loan
• Payroll Advance
• Home Improvement
• Education/Student Loans
• Point of Sale
• Auto Loans
• Medical Loans
• B2B Loans
• Lines of Credit
• Merchant Cash Advance
• Invoice Factoring
• Revenue Financing

Vietnam Alternative Lending Analysis by Consumer Attitude and Behaviour

• By Age
• By Income
• Gender

Vietnam Economic Indicators

• Gross Domestic Product at Current Prices
• Population
• Unbanked Population
• Unemployment Rate
• Loan Default Rate

Vietnam Alternative Lending Market Size and Forecast

• Transaction Value
• Average Transaction Value
• Transaction Volume

Vietnam Alternative Lending Market Size and Forecast by End User

• End User - Business
• End User - Consumer

Vietnam Alternative Lending Market Size and Forecast by Finance Models

• P2P Marketplace Consumer Lending
• P2P Marketplace Business Lending
• P2P Marketplace Property Lending
• Balance Sheet Consumer Lending
• Balance Sheet Business Lending
• Balance Sheet Property Lending
• Invoice Trading
• Debt Based Securities
• Equity Based Crowd Funding
• Real Estate Crowd funding

Vietnam Alternative Lending Market Size and Forecast by Payment Instrument - Transaction Value, Volume and Average Value

• Cash
• Cheques
• Credit Transfer
• Direct Debits
• Debit Card
• Credit Card
• E- Money

Vietnam Alternative Lending Market Size and Forecast by Payment Instrument to Model

Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Consumer Lending

Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Business Lending

Alternative Lending Market Size and Forecast by Payment Instrument to P2P Marketplace Property Lending

Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Consumer Lending

Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Business Lending

Alternative Lending Market Size and Forecast by Payment Instrument to Balance Sheet Property Lending

Alternative Lending Market Size and Forecast by Payment Instrument to Invoice Trading

Alternative Lending Market Size and Forecast by Payment Instrument to Debt Based Securities

Alternative Lending Market Size and Forecast by Payment Instrument to Equity Based Crowd Funding

Alternative Lending Market Size and Forecast by Payment Instrument to Real Estate Crowd funding

For more information about this report visit https://www.researchandmarkets.com/r/ckw0i6

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