Supporting Vietnamese people to improve their financial well-being
Supporting Vietnamese people to improve their financial well-being is a joint report by Home Credit Vietnam and Decision Lab on the financial status, borrowing behaviour and provider expectations of Vietnamese consumers after a challenging 2023. 70% of Vietnamese earned the same or less in 2023 than the year before, and most carry only a thin financial buffer into 2024. The report examines where consumers stand financially heading into 2024 and what they now demand from lenders. It is written for finance industry leaders shaping products, credit access and financial education.
Key highlight points:
- 2023 left most Vietnamese financially stretched. Only a third (35%) managed to save over the year, and among those who did, nearly half (49%) holdsavings that would cover three months or less if income stopped.
- A confidence gap is keeping people away from banks. 52% of consumers believe they are not qualified to borrow from a bank - rising to 65% among low-income earners - counting themselves out before they even apply.
- Consumer Finance Companies are stepping into the gap. 72% of consumers are open to borrowing from CFCs, which win on the factors banks make hard: easy, fast approval and a simple application process.
- Trust and transparency are reshaping the choice of lender. Transparent interest rates and fees (59%) and a trustworthy brand now top what wins borrowers, ahead of speed or loan size - trust has become the deciding factor.
- Cashless payment has crossed into the mainstream. 86% of people used a cashless method in the past year and 84% plan to use it more, with adoption led by higher earners (90% of upper-income users).