The trend is to spend

Wednesday, May 18, 2016 08:12

The outlook for the Vietnam economy promises to further facilitate both trade and investment with the signing of free trade agreements like the ASEAN Economic Community, the European Union – Vietnam Free Trade Agreement and the Trans-Pacific Partnership. All stakeholders are optimistic: Vietnam is getting ready for substantial and sustainable growth.

Purchasing power on the rise

More customers become receptive to the idea of leveraging their income to finance the purchase of useful durable goods and avail various types of services to improve their lifestyle. According to, in 2020 Vietnamese consumers are expected to spend 40 per cent more than in 2016.

The dynamics of the consumer finance market

The country has its own classification of generations, which differs significantly from western ones. For the consumer finance industry, it is important to understand the behaviours of the main customer segments - the Vietnamese Baby Boomers and Generation X'ers. They are now between 16 – 41 years old and comprise almost 50 per cent of the population. They differ remarkably in their financial habits from the "War Babies" generation. Their characteristic is to spend more.

Vietnamese Baby Boomers

Most Vietnamese Baby Boomers, born between 1975 and 1990, are now well-established in their careers and have families with young children. They comprise almost 30 per cent of the population. They don't look back, but ahead. They work hard to create a life of comfort and pleasure for their family, as well as spend on better living conditions. They pioneered our "Digital Age" and witnessed an explosion of products to enhance life. While their parents, the War Babies, grew up in a world where survival meant saving, the Baby Boomers form the biggest market for consumer finance products. They save, but prefer to spend.

The Vietnamese Millennials: generation ‘9X'

Many Vietnamese Millennials – born between 1990 and 2000 and making up 20 per cent of the population – have started their careers. Their philosophy is flexibility to change and freedom. The Vietnamese Millennials' needs are clear: from a stylish motorbike to the latest model smart phone. They are keen on social media and go for good deals: high quality, low price. They are the consumer finance industry's fastest growing market segment. The Millennials want a credit card to satisfy their immediate buying needs. Many will qualify to get one within the next five years.

Growth results in increased spending

It is expected that with economic growth Vietnamese salaries will increase, meaning more buying power and less risk for providers of consumer credit. With steady economic growth and a positive outlook, and 50 per cent of its population spending their earnings on elevating their living standards, Vietnam has a sound investment climate where consumer lending is concerned.

FE CREDIT is fully aware of these demographic developments and trends. A wise investor jumps on the bandwagon and enjoys the ride.

Over the past five years FE CREDIT has served nearly three million customers across Vietnam who, despite earning a decent income, are often neglected by banks. FE CREDIT has achieved its market leading position thanks to being a pioneer in providing the most advanced products and services from personal and two-wheeler loans to consumer durables loans and credit cards.

In September 2015 FE CREDIT received the prize for "Best Consumer Finance Company Vietnam 2015" from the UK-based Global Banking & Finance Review.

FE CREDIT is expanding its distribution channels, especially online, improving its IT systems and constantly developing its risk management practices by benchmarking against the world's best practices.

Visit our website at: or call (08) 39 115 212 or email: for investment opportunities.

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