Report Overview

Vietnam Peer-to-Peer (P2P) Lending Market - Industry Trends & Forecast Report, 2029

Vietnam Peer-to-Peer (P2P) Lending Market size was estimated at USD 578.44 million in 2022. During the forecast period between 2023 and 2029, the size of Vietnam Peer-to-Peer (P2P) Lending Market is projected to grow at a CAGR of 20.3% reaching a value of USD 1,753.55 million by 2029. Major growth drivers for the Vietnam Peer-to-Peer (P2P) Lending Market include an increasing technological adoption and a demand for alternative financial services. As technology and artificial intelligence increasingly dominate the conventional banking and finance sector, Vietnam, boasting a population of 96 million and a substantial 70% internet penetration, emerges as a prime destination for fintech investors. Notably, P2P lending has gained prominence, with over 40 companies—both domestic and foreign—vying to offer P2P lending services to the local populace. This trend signals a significant shift in the financial landscape, indicating a growing reliance on technology-driven financial solutions in Vietnam.

Peer-to-Peer (P2P) Lending – Overview

Peer-to-peer (P2P) lending represents a form of financial transaction where individuals engage in lending and borrowing activities directly with one another, bypassing the involvement of traditional financial intermediaries like banks. P2P lending platforms facilitate a direct connection between borrowers and lenders, streamlining the loan process and offering a more efficient alternative to conventional lending methods. Individuals utilizing P2P lending platforms as borrowers often experience faster loan approvals and more favorable interest rates compared to traditional banks or other financial institutions. Conversely, P2P lending may present lenders with a potentially higher return on investment when compared to alternative financial instruments like savings accounts or certificates of deposit. While P2P lending serves as a valuable tool for both borrowers and lenders, it is imperative to carefully assess associated risks and potential drawbacks, including the absence of FDIC insurance and the risk of borrower default.

Vietnam Peer-to-Peer (P2P) Lending Market

Growth Drivers

Growing Demand for Diversification

The popularity of peer-to-peer (P2P) lending stems from increased credit accessibility and a growing quest for financial service diversification. P2P platforms, with more lenient lending criteria than traditional institutions, broaden credit access, attracting individuals who might otherwise be excluded. The appeal of lower interest rates on these loans fuels market demand. Simultaneously, P2P lending is a viable alternative for investors seeking diversification beyond conventional instruments like stocks and bonds. This growing demand for diversified investment portfolios is crucial to the positive trajectory of the P2P lending market.

Restraints

Lack of Transparency

The Vietnam Peer-to-Peer (P2P) Lending Market faces growth constraints due to a notable lack of transparency. It raises concerns among investors and borrowers, hindering market expansion. The absence of clear and comprehensive information regarding lending processes and risk management on P2P platforms contributes to hesitancy in market participation. To foster sustainable growth, addressing and rectifying these transparency challenges is imperative, ensuring a more secure and trustworthy environment for all stakeholders involved in P2P lending in Vietnam.

Impact of Covid-19 on Vietnam Peer-to-Peer (P2P) Lending Market

Covid-19 pandemic had a dual impact on the Vietnam Peer-to-Peer (P2P) Lending Market. On the one hand, economic uncertainties and concerns over borrower repayment capabilities have heightened risk aversion among lenders, impacting loan disbursements. On the other hand, the pandemic has accelerated digital adoption, potentially driving increased demand for online financial services. P2P lending platforms, adapting to the new normal, may leverage technology to enhance risk management and borrower assessment. The overall impact underscores the importance of agility and innovation in navigating the evolving landscape, with the potential for long-term changes in the P2P lending market.

Vietnam Peer-to-Peer (P2P) Lending Market

Segmental Coverage

Vietnam Peer-to-Peer (P2P) Lending Market – By Business Model

Based on business model, the Vietnam Peer-to-Peer (P2P) Lending Market is bifurcated into Traditional Lending and Alternate Marketplace Lending segments. The traditional lending segment holds a higher share in the Vietnam Peer-to-Peer (P2P) Lending Market by business model. A key advantage of conventional P2P lending lies in its ability to offer borrowers credit at potentially reduced interest rates compared to those available from traditional financial institutions. Additionally, it affords lenders the potential for a superior return on investment compared to alternative financial instruments like savings accounts or deposit certificates.

Vietnam Peer-to-Peer (P2P) Lending Market – By Loan Type

Based on loan type, the Vietnam Peer-to-Peer (P2P) Lending Market is divided into Consumer Credit Loans, Small Business Loans, Student Loans, and Real Estate Loans segments. The small business loans segment holds the highest share in the Vietnam Peer-to-Peer (P2P) Lending Market by loan type and is expected to maintain its dominance over the forecast period. P2P lending platforms offer a viable avenue for obtaining small business loans, particularly for enterprises ineligible for conventional bank financing. These platforms often feature more flexible lending criteria than traditional institutions, potentially granting credit to small businesses at more favorable interest rates.

Vietnam Peer-to-Peer (P2P) Lending Market – By End User

On the basis of end user, the Vietnam Peer-to-Peer (P2P) Lending Market is bifurcated into Business and Personal segments. The business segment holds a higher share in the Vietnam Peer-to-Peer (P2P) Lending Market by end user. P2P lending platforms, with more lenient lending standards compared to traditional institutions, offer businesses faster and more flexible financing options. This accessibility, coupled with potentially lower interest rates, positions P2P lending as an attractive alternative for businesses facing challenges in securing loans through conventional banking channels. The efficiency and adaptability of P2P lending meet the dynamic financial needs of businesses, contributing to the sector's prominence in the market.

Competitive Landscape

Major players operating in the Vietnam Peer-to-Peer (P2P) Lending Market include Tima, VayMuon, LuX Network, FCredit, and P2P Lend. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Business Model

• Traditional Lending

• Alternate Marketplace Lending

By Loan Type

• Consumer Credit Loans

• Small Business Loans

• Student Loans

• Real Estate Loans

By End User

• Business

• Personal

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Vietnam Peer-to-Peer (P2P) Lending Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rising internet penetration
         2. Growing demand for diversification
      2. Restraints
         1. Lack of transparency
      3.  Opportunities
         1. Advancement in technology
      4. Challenges
         1. Risk of fraud
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Vietnam Peer-to-Peer (P2P) Lending Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Business Model
         1. Traditional Lending
         2. Alternate Marketplace Lending
      2. By Loan Type
         1. Consumer Credit Loans
         2. Small Business Loans
         3. Student Loans
         4. Real Estate Loans
      3. By End User
         1. Business
         2. Personal
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Vietnam Peer-to-Peer (P2P) Lending Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid-19 on Vietnam Peer-to-Peer (P2P) Lending Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Tima
   2. VayMuon.vn
   3. LuX Network
   4. FCredit
   5. P2P Lend
   6. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1.       Qualitative Research
      1.   Primary & Secondary Research
   2.       Quantitative Research
   3.       Market Breakdown & Data Triangulation
      1.   Secondary Research
      2.   Primary Research
   4.       Breakdown of Primary Research Respondents, By Country
   5.       Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       Vietnam Peer-to-Peer (P2P) Lending Segmentation          

Figure 2       Vietnam Peer-to-Peer (P2P) Lending Market Value Chain Analysis                  

Figure 3       Company Market Share Analysis, 2022         

Figure 4       Vietnam Peer-to-Peer (P2P) Lending Market Size, By Value (USD Million), 2019–2029          

Figure 5       Vietnam Peer-to-Peer (P2P) Lending Market Share, By Business Model, By Value, 2019–2029          

Figure 6       Vietnam Peer-to-Peer (P2P) Lending Market Share, By Loan Type, By Value, 2019–2029          

Figure 7       Vietnam Peer-to-Peer (P2P) Lending Market Share, By End User, By Value, 2019–2029          

List of Tables

Table 1        Vietnam Peer-to-Peer (P2P) Lending Market Size, By Value (USD Million), 2019–2029 

Table 2        Vietnam Peer-to-Peer (P2P) Lending Market Size, By Business Model, By Value, 2019–2029 

Table 3        Vietnam Peer-to-Peer (P2P) Lending Market Size, By Loan Type, By Value, 2019–2029 

Table 4        Vietnam Peer-to-Peer (P2P) Lending Market Size, By End User, By Value, 2019–2029

Table 5        Tima Company Overview

Table 6        Tima Financial Overview

Table 7        VayMuon.vn Company Overview

Table 8        VayMuon.vn Financial Overview

Table 9        LuX Network Company Overview

Table 10      LuX Network Financial Overview

Table 11      FCredit Company Overview

Table 12      FCredit Financial Overview

Table 13      P2P Lend Company Overview

Table 14      P2P Lend Financial Overview