Report Overview

Vietnam Supply Chain Finance Market - Industry Trends & Forecast Report, 2030

Vietnam Supply Chain Finance market size is projected to grow at a CAGR of 10.96% during the forecast period between 2024 and 2030. Major growth factors for Vietnam Supply Chain Finance Market include increasing complexity in global supply chains and growing demand for financing among small and medium-sized enterprises (SMEs). Furthermore, the growing number of agreements and joint ventures by industry players to enhance supply chain finance sustainability and improve financial access by providing services and adoption of advanced services, such as blockchain, are projected to drive Vietnam Supply Chain Finance Market during the period in analysis.

Supply Chain Finance – Overview

Supply chain finance (SCF) refers to a set of technology-based solutions to lower financing costs and enhance business efficiency for buyers and sellers involved in a sales transaction. SCF techniques function by automating transactions and tracking the approval and settlement of invoices from start to finish. In this paradigm, buyers agree to approve their suppliers' bills for financing by a bank or other outside financier, referred to as "factors." SCF also gives specific advantages to all participants by providing a short-term loan that optimizes working capital and provides liquidity to both parties. While suppliers enjoy faster access to money owed to them, purchasers have more time to pay off their accounts. On either side of the equation, the cash on hand might be used for other tasks to keep their respective businesses functioning well.

Vietnam Supply Chain Finance Market

Growth Drivers

Growing Complexity in Supply Chain

The expanding e-commerce sector and international trade due to the growing demand for products from other countries is fueling cross-border transactions in Vietnam. As a result, the need for secured financial tools that can provide liquidity and other services, such as currency exchange and payment settlement, is emerging. Various factors are contributing to the increasing complexity of the global supply chain, including geopolitical tensions, natural disasters, changes in trade regulations, etc. Supply chain finance is emerging as an effective solution for companies to deal with risks associated with supply chains that could cause disruptions in their operations.

Challenges

Lack of Accessibility

The availability of supply chain finance (SCF) solutions is not the only barrier the market has to overcome. The Vietnamese government as well as industry players also need to focus on improving the accessibility of SCF, particularly among SMEs. The lack of working capital and availability of finances restricts the expansion of businesses or may harm relationships between buyers and sellers. It is anticipated that the lack of awareness surrounding SCF among small and medium-sized enterprises contributes to the limited demand. Data from the National Secured Transactions Registration System reveals that only around 30% of receivables and inventory interests are registered for security interest in Vietnam.

Impact of Escalating Geopolitical Tensions on Vietnam Supply Chain Finance Market

Intensifying geopolitical tensions among countries spreading across the major regions could adversely affect the growth of Vietnam Supply Chain Finance Market. Vietnam's supply chain sector primarily depends on larger economies, including China and the United States. However, geopolitical tensions may hamper foreign direct investment (FDI) in Vietnam as investors become reluctant to engage their businesses in regions with perceived instability. High risks surrounding shipments or delivery of goods from other countries, particularly from sensitive regions such as the Middle East, may prompt supply chain finance providers to increase interest rates, which may increase the cost of business and make these tools inaccessible, especially for MSMEs.

Vietnam Supply Chain Finance Market

Segmental Coverage

Vietnam Supply Chain Finance Market – By Offering

Based on offering, Vietnam Supply Chain Finance Market is segmented into export & import bills, letters of credit, performance bonds, shipping guarantees, and others. The export & import bills segment accounts for the largest market share owing to the expanding e-commerce sector and trade of international goods. Supply chain finance provides working capital to buyers and sellers conducting international trade to deal with financial gaps between shipment and payment and maintain a cash flow through products such as import and export bills.

Vietnam Supply Chain Finance Market – By Provider

Based on provider, Vietnam Supply Chain Finance Market is segmented into Banks, Trade Finance Houses, and others. The banks segment accounts for the largest share of Vietnam Supply Chain Finance Market by provider. Banks are considered the most trusted and accessible provider of supply chain finance as they offer various products, including letters of credit, shipping guarantees, and others. Along with these products, banks provide customization as well in their offerings to meet the needs of their diverse clientele. They also assist organizations to mitigate risks, including financial risks, associated with the supply chain. Meanwhile, trade finance houses are projected to register a significant growth rate over the forecast period, as they particularly cater to international trade and ensures exporters the paid timely to maintain their cashflow.

Vietnam Supply Chain Finance Market – By Application

On the basis of application, Vietnam Supply Chain Finance Market is split into domestic and international segment. The domestic segment accounts for a higher market share. The expanding domestic trade in Vietnam and growing competitiveness among both large enterprises and MSMEs directly influence the demand for supply chain finance. Supply chain finance provides lucrative growth opportunities to local businesses by facilitating trade with global partners and boosting their foreign trade volume by providing them with substantial working capital and performing more open-account transactions.

Vietnam Supply Chain Finance Market – By End User

By end user, Vietnam Supply Chain Finance Market is bifurcated into large enterprises and small and medium-sized enterprises (SMEs) segments. SMEs hold a larger share of Vietnam Supply Chain Finance Market by end user. The lack of credit support from traditional mediums and its negative impact on the smooth flow of their operations is prompting SMEs to shift toward supply chain financing. SCF assists small and medium-sized enterprises in maintaining their cash flow through various collateral-free financing options and helps them reduce their supply chain risk.

Competitive Landscape

Major companies in Vietnam Supply Chain Finance market include Bank for Investment and Development of Vietnam, HSBC, HDBank, VPBank, Veefin, Standard Chartered Bank, and TASConnect. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In April 2024 – HDBank, a leading commercial banking company based in Vietnam, announced its partnership with ASYX to enhance its supply chain finance strategy.

Scope of the Report

By Offerings

• Export & Import Bills

• Letter of Credit

• Performance Bonds

• Shipping Guarantees

• Others

By Provider

• Banks

• Trade Finance House

• Others

By Application

• Domestic

• International

By End User

• Large Enterprises

• Small and Medium-sized Enterprises (SMEs)

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Vietnam Supply Chain Finance Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Growing Demand from SMEs
         2. Adoption of Advanced Technologies
      2. Restraints
         1. Poor Access to Supply Chain Financing
         2. Increasing Concern regarding Security and Privacy
      3. Opportunities
         1. Globalization and Complex Supply Chains
         2. Rising Product Launches by Major Market Players
      4. Challenges
         1. Limited Availability of Skilled Professionals with Expertise in Supply Chain Finance
   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 Supply Chain Finance Market: Marketing Strategies
5. Vietnam Supply Chain Finance Market: Pricing Analysis
6. Vietnam Supply Chain Finance Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Offerings
         1. Export and Import Bills
         2. Letter of Credit
         3. Performance Bonds
         4. Shipping Guarantees
         5. Others
      2. By Provider
         1. Banks
         2. Trade Finance House
         3. Others
      3. By Application
         1. Domestic
         2. International
      4. By End User
         1. Large Enterprises
         2. Small and Medium-sized Enterprises
7. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Vietnam Supply Chain Finance Company Market Share Analysis, 2023
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
8. Impact of Escalating Geopolitical Tensions on Vietnam Supply Chain Finance Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
   1. Bank for Investment and Development of Vietnam
   2. HSBC
   3. HDBank
   4. VPBank
   5. Veefin
   6. Standard Chartered Bank
   7. TASConnect
   8. Other Prominent Players
10. Key Strategic Recommendations
11. 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 Supply Chain Finance  Segmentation

Figure 2       Vietnam Supply Chain Finance  Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2023

Figure 4       Vietnam Supply Chain Finance  Market Size, By Value (USD Million), 2019–2030

Figure 5       Vietnam Supply Chain Finance  Market Share, By Offerings,  By Value, 2019–2030

Figure 6       Vietnam Supply Chain Finance  Market Share, By Providers, By Value, 2019–2030

Figure 7       Vietnam Supply Chain Finance  Market Share, By Application,  By Value, 2019–2030

Figure 8       Vietnam Supply Chain Finance  Market Share, By End User, By Value, 2019–2030

List of Tables

Table 1        Vietnam Supply Chain Finance  Market Size, By Value (USD Million), 2019–2030

Table 2        Vietnam Supply Chain Finance  Market Size, By Offerings,  By Value, 2019–2030

Table 3        Vietnam Supply Chain Finance  Market Size, By Providers, By Value, 2019–2030

Table 4        Vietnam Supply Chain Finance  Market Size, By Application,  By Value, 2019–2030

Table 5        Vietnam Supply Chain Finance  Market Size, By End User, By Value, 2019–2030

Table 6        Bank for Investment and Development of Vietnam Company Overview

Table 7        Bank for Investment and Development of Vietnam Financial Overview

Table 8        HSBC Company Overview

Table 9        HSBC Financial Overview

Table 10      HDBank Company Overview

Table 11      HDBank Financial Overview

Table 12      VPBank Company Overview

Table 13      VPBank Financial Overview

Table 14      Veefin Company Overview

Table 15      Veefin Financial Overview

Table 16      Standard Chartered Bank Company Overview

Table 17      Standard Chartered Bank Financial Overview

Table 18      TASConnect Company Overview

Table 19      TASConnect Financial Overview