VIETNAM’S M&A MARKET IS BEING UNEXPECTEDLY ACTIVE IN THE FINANCIAL SECTOR
a month ago
10:41
Despite going through the toughest period in the past 15 years, the Vietnamese consumer finance market is still considered a lucrative opportunity. This is why many foreign investors are still seeking investment opportunities in financial companies here.
Recently, SeABank sold 100% of its stake in Post And Telecommunication Finance Company (PTF) to AEON Financial Service, a member of the AEON Group, for VND 4.3 trillion. With this move, AEON will also expand its opportunities in the buy now, pay later sector, which is becoming one of the current consumer trends.
According to Reuters, Kasikornbank (KBank), Thailand's second-largest bank, is in talks to acquire Home Credit Vietnam, a consumer finance company, to further expand KBank's operations in Vietnam. The deal is valued at $1 billion. If the acquisition is successful, KBank will have more opportunities to promote financial services for small business customers in Vietnam.
Earlier, in June 2023, SHB completed the transfer of a 50% stake in SHBFinance to Krungsri Bank (Thailand). Over the next 3 years, SHB will transfer the remaining 50% stake to Krungsri Bank. The total estimated value of the deal is around VND 3.6 trillion.
Mr. Nguyen Quoc Hung, General Secretary of the Vietnam Banks Association, commented: "Consumer lending in Vietnam is still a very potential market. Although this market faces temporary difficulties, there is still a lot of room for development. Therefore, investors with financial strength are looking at the market prospects and are confident in the government's policies, ready to invest in this sector."
Financial experts also suggest that the "cake" of consumer lending in Vietnam is still very attractive, and M&A is the only way to enter the market. The current challenges in this market present good opportunities for investors.
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Source: Dau tu chung khoan