An international conference on consumer finance will be held on October 19 to address important themes and legal framework changes for the healthy and sustainable development of Viet Nam’s consumer finance market.

Some 200 participants -- market regulators, local and foreign banks, finance companies and investment funds, as well as e-payment and e-commerce players, investors and international organisations, are expected to take part in the event.

Market participants, investors, researchers and regulators will come together to discuss existing issues and provide insights and reflections on market practices and international experiences, contributing to the development of the Vietnamese consumer finance sector.

The event will take place at the Hilton Hanoi Opera in Ha Noi and is organised by business information provider StoxPlus.

Consumer finance is seen as one of the fastest growing sectors in Viet Nam in the past few years, with the country’s total loan book recorded at VND605 trillion for both banks and non-banks as of December 31, 2016.

Total loan book by pure consumer finance players accounted for VND56.3 trillion. It is expected to increase sharply in 2017 and subsequent years, with an annual growth rate of 48 per cent in the 2014-16 period.

Low penetration and significant unbanked population in Viet Nam are reasons for the high potential of the local market, however, various challenges and policy developments have yet to be shared and discussed by all stakeholders for the sustainable and healthy development of the sector in the future.

At the upcoming event, participants will have opportunities to discuss four topics, including management of the sector's growth for Viet Nam from the risk management perspective, social impact of consumer/borrower’s protection and how consumer finance companies can improve the underwriting process.

The two other topics are how the Government can develop a legal and policy framework to govern the consumer finance sector and support its healthy development, and how emerging models such as application of big data, fintech and peer-to-peer lending can be used in the context of Viet Nam. — VNS