Report Overview

Vietnam Trade Finance Market - Industry Trends & Forecast Report, 2030

Vietnam Trade Finance market size is projected to grow at a CAGR of 4.16% during the forecast period between 2024 and 2030. Major growth factors for Vietnam Trade Finance Market include flourishing international trade with improving supply chain and export performance. Trade finance providers, such as banks, are leveraging advanced technologies, such as automation and artificial intelligence (AI), to improve accessibility to these tools and reduce costs. In addition, governments and financial institutions are also focused on raising awareness, particularly among small and medium-sized enterprises, which is anticipated to drive Vietnam Trade Finance Market during the forecast period in analysis.

Trade Finance – Overview

Trade finance is the process of providing financial support for the exchange of goods or services in a commercial transaction, extending from the supplier to the ultimate buyer. "Trade finance," also known as "export finance," encompasses a range of financial instruments employed by organizations involved in global trade and commerce. It includes banks, trade finance firms, export credit organizations, importers, and exporters. Trade finances protect businesses against the risks associated with international trade, such as currency fluctuations and political unpredictability.

Vietnam Trade Finance Market

Growth Drivers

Growing Need for Protection amid Instability

The increasing instability and threats associated with the import and export of goods and services, particularly in the international market, propel the demand for trade finance in Vietnam. Trade finance products are emerging as effective tools for companies to maintain their working capital and minimize the risks of cross-border transactions. The exporters are concerned about receiving payment for the goods they sell, while the importers are concerned about receiving goods from sellers against their advanced payments. Trade finance protects exporters from non-payment of goods through letters of credit and cash advances. In addition to handling matters associated with finances, trade finances also protect companies from other complications and threats such as legal complexities, terrorism, and war, which is propelling the growth of Vietnam Trade Finance Market.

Challenges

Inaccessibility to Trade Finance Services

Low awareness and inaccessibility to trade finance services act as major restraints to Vietnam Trade Finance Market. Experts suggest that the Trade Finance Market of Vietnam is highly segmented, traditional, and underutilized, which acts as a major barrier to its market growth. A report by the International Finance Corporation (IFC) and the World Trade Organization (WTO) reveals that Vietnamese banks provided trade finance support to only about 21% of the country's total merchandise sales, which is drastically low compared to other developed countries. The lack of awareness, particularly among small and medium-sized enterprises, also hinders the growth of Vietnam Trade Finance Market.

Impact of Escalating Geopolitical Tensions on Vietnam Trade Finance Market

Intensifying geopolitical tensions among countries spreading across the major regions are expected to favor Vietnam Trade Finance Market. Growing geopolitical tensions, such as Russia-Ukraine war and Israel ongoing war in the Middle East region, increase the risks associated with international trade. As a result, the demand for trade finance is projected to surge in Vietnam amid these tensions to keep their operations going and maintain relations with their international buyers and suppliers. Trade finance tools protect businesses from complications arising from geopolitical tensions, such as currency fluctuations, changes in trade regulations, or disruptions in the supply chain.

Vietnam Trade Finance Market

Segmental Coverage

Vietnam Trade Finance Market – By Product Type

Based on product type, Vietnam Trade Finance Market is segmented into commercial letters of credit, standby letters of credit, guarantees, and others. Commercial letters of credit hold the largest share in the Vietnam Trade Finance Market. Letters of credit provide payment security to sellers against their goods and services in international trade transactions. This product type is particularly in strong demand among SMEs dealing with new suppliers or suppliers outside of Vietnam. The easy accessibility of letters of credit from providers is another factor in its growing demand in the market.

Vietnam Trade Finance Market – By Provider

On the basis of provider, Vietnam Trade Finance Market is segmented into banks, trade finance houses, and others. The bank segment accounts for the largest market share of Vietnam Trade Finance Market by provider. Banks hold a reputation as the most trusted provider of trade finance because of their extensive network and secured international relations. They help enterprises efficiently deal with cross-border trade and provide delivery assurance. Furthermore, the availability of diverse trade finance products with banks and easy customization according to the needs and business propel the market growth of the bank segment.

Vietnam Trade Finance Market – By Application

By application, Vietnam Trade Finance Market is split into domestic and international segment. The international trade segment holds the largest share of Vietnam Trade Finance Market by application, owing to the robust manufacturing export sector of the country. Vietnam is a leading manufacturer and exporter of many commodities, including integrated circuits, broadcasting equipment, office machine parts, and textile footwear, which have strong demand in the international market. Trade finance helps companies mitigate risks involved in international trade, such as currency fluctuations and geopolitical tensions, to improve the sustainability of their businesses, which drives its market growth.

Vietnam Trade Finance Market – By End User

Based on end user, Vietnam Trade Finance Market is segmented into traders, importers, and exporters. The exporters segment dominates Vietnam Trade Finance Market by the end user. The expanding international trade is fueling the demand for trade finance among Vietnam exporters to ensure availability of working capital and the smooth running of their operations. In addition, trade finance products also protect exporters from risks associated with cross-border transactions. The provider institutions offer various products to these exporters, including trade loans and supply chain finance, which protect their investments and help them absorb any substantial risks.

Competitive Landscape

Vietnam Trade Finance Market is highly competitive, as a number of companies are competing to gain a significant market share. Key players in the market include ANZ, VietinBank DE, Standard Chartered, BIDV, JP Morgan Chase, Citibank, Far East National Bank, Wells Fargo, and Visa International. 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 September 2024 – Maybank, a commercial banking company, announced an extension of green trade finance for the Ca Mau 1 Wind Power Project in Ca Mau, Vietnam.

Scope of the Report

By Product Type

• Commercial Letters of Credit

• Standby Letters of Credit

• Guarantees

• Others

By Provider

• Banks

• Trade Finance House

• Others

By Application

• Domestic

• International

By End User

• Traders

• Importers

• Exporters

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Vietnam Trade Finance Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Globalization and Increased International Trade
         2. Increasing Adoption of Advanced Technologies
      2. Restraints
         1. Inaccessibility to Trade Finance Services
      3. Opportunities
         1. Growing Demand among Small and Medium-sized Enterprises
         2. Supply Chain Complexity and Resilience
      4. Challenges
         1. Limited Availability of Skilled Professionals with Expertise
   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 Trade Finance Market: Marketing Strategies
5. Vietnam Trade Finance Market: Pricing Analysis
6. Vietnam Trade Finance Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Product Type
         1. Commercial Letters of Credit
         2. Standby Letters of Credit
         3. Guarantees
         4. Others
      2. By Provider
         1. Banks
         2. Trade Finance House
         3. Others
      3. By Application
         1. Domestic
         2. International
      4. By End User
         1. Traders
         2. Importers
         3. Exporters
7. Competitive Landscape
   1. List of Key Players and Their Product Type
   2. Vietnam Trade Finance Company Market Share Analysis, 2023
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships,)
8. Impact of Escalating Geopolitical Tensions on Vietnam Trade Finance Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
   1. ANZ
   2. VietinBank DE
   3. Standard Chartered
   4. BIDV
   5. JP Morgan Chase
   6. Citibank
   7. Far East National Bank
   8. Wells Fargo
   9. Visa International
   10. 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 Trade Finance  Segmentation

Figure 2       Vietnam Trade Finance  Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2023

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

Figure 5       Vietnam Trade Finance  Market Share, By Product Type,  By Value, 2019–2030

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

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

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

List of Tables

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

Table 2        Vietnam Trade Finance  Market Size, By Product Type,  By Value, 2019–2030

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

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

Table 5        Vietnam Trade 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        ANZ Company Overview

Table 9        ANZ Financial Overview

Table 10      VietinBank DE Company Overview

Table 11      VietinBank DE Financial Overview

Table 12      Standard Chartered Company Overview

Table 13      Standard Chartered Financial Overview

Table 14      BIDV Company Overview

Table 15      BIDV Financial Overview

Table 16      JP Morgan Chase Company Overview

Table 17      JP Morgan Chase Financial Overview

Table 18      Citibank Company Overview

Table 19      Citibank Financial Overview

Table 20      Far East National Bank Company Overview

Table 21      Far East National Bank Financial Overview

Table 22      Wells Fargo Company Overview

Table 23      Wells Fargo Financial Overview

Table 24      Citibank Company Overview

Table 25      Citibank Financial Overview