https://theinvestor.vn/thai-fintech-firm-plans-to-complete-acquisition-of-home-credit-vietnam-in-early-2025-d13935.html
Thai fintech firm plans to complete acquisition of Home Credit Vietnam in early 2025
Thailand’s fintech giant SCB X has announced a plan to complete its acquisition of Home Credit Vietnam Finance Co, the consumer finance arm of Home Credit NV (Home Credit Group), in the first half of 2025, pending regulatory approval.
theinvestor.vn
Introduction
In a significant development for Vietnam's consumer finance sector, Thailand's fintech powerhouse SCB X has unveiled its strategy to finalize the acquisition of Home Credit Vietnam Finance Co by the first half of 2025. This move, pending regulatory approval, is set to reshape the landscape of consumer lending in Vietnam and solidify SCB X's position as a leading regional financial tech group.
The Acquisition Deal
On February 28, 2023, SCB X made the announcement that it had entered into a sales and purchase agreement via Siam Commercial Bank (SCB) to acquire the entire charter capital of Home Credit Vietnam Finance Co. The deal, valued at approximately THB31 billion ($907.49 million), marks a significant milestone in SCB X's journey to expand its presence in the fast-growing Southeast Asian market.
Home Credit Vietnam: A Consumer Finance Leader
Founded in 2008, Home Credit Vietnam has established itself as a dominant player in Vietnam's consumer finance industry. The company offers a diverse portfolio of financial products, catering to the mass and upper-mass market segments. These products include consumer durable loans, revolving loans, cash loans, and two-wheeler loans.
Impressive Growth and Market Presence
Since its inception, Home Credit Vietnam has achieved remarkable growth and market penetration. The company has served over 15 million customers and boasts an extensive network of 14,000 points of sale across the country. Over the past decade, Home Credit Vietnam has recorded a compound annual growth rate of 18.7% in total assets, demonstrating its operational efficiency and potential.
Omnichannel Distribution and Risk Management
One of the key strengths of Home Credit Vietnam lies in its sophisticated omnichannel distribution network. By seamlessly integrating online and offline channels, the company enhances the customer experience and expands its reach. Additionally, Home Credit Vietnam maintains a robust risk management framework, efficient collection capabilities, and advanced digital infrastructure, ensuring the stability and security of its operations.
Market Share and Growth Potential
As of June 30, 2023, Home Credit Vietnam commanded a 14% market share in Vietnam's consumer finance sector, positioning it as the second-largest player in the industry. Vietnam's consumer finance market is one of the fastest-growing in Southeast Asia, driven by strong macroeconomic fundamentals, growth-oriented policies, favorable demographics, and an expanding middle class. These factors make Vietnam an attractive destination for consumer finance companies seeking growth opportunities.
SCB X's Strategic Expansion
Arthid Nanthawithaya, chief executive of SCB X, emphasized the significance of this acquisition in the group's strategic expansion plans. By acquiring Home Credit Vietnam, SCB X aims to strengthen its presence in a high-growth Southeast Asian market, diversify its income streams, and deliver long-term returns to shareholders.
Vietnam: A Key Strategic Market
Vietnam, with its vibrant economy averaging 7.5% GDP growth over the past decade and a tech-savvy population of over 100 million, presents a compelling opportunity for SCB X. The acquisition of Home Credit Vietnam serves as a gateway for SCB X to establish a strong foothold in this dynamic market. The experienced management team of Home Credit Vietnam, comprising both European and Vietnamese members, will provide a solid foundation for SCB X's operations in the country.
Financial Impact and Capital Adequacy
Arthid Nanthawithaya highlighted that the acquisition of Home Credit Vietnam will contribute positively to SCB X's bottom line immediately upon the deal's completion. The transaction enhances the group's income diversification strategy, ensuring long-term stability. Moreover, both SCB X and Siam Commercial Bank will maintain strong capital adequacy ratios post-transaction, demonstrating the financial soundness of the acquisition.
Conclusion
The planned acquisition of Home Credit Vietnam by SCB X marks a significant milestone in the Thai fintech giant's regional expansion strategy. By leveraging Home Credit Vietnam's strong market position, extensive customer base, and robust distribution network, SCB X is poised to capitalize on the immense growth potential of Vietnam's consumer finance sector. As the acquisition moves towards completion in early 2025, it is expected to reshape the competitive landscape and drive innovation in the industry, ultimately benefiting Vietnamese consumers and contributing to the country's economic growth.
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