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BUSINESS SPOTLIGHT

Lien Viet Post Bank: Making car ownership a reality

Released at: 09:04, 05/08/2016 BUSINESS SPOTLIGHT

Lien Viet Post Bank: Making car ownership a reality

Photo: Duc Anh

Bank announces loan program to help customers fulfill their dream of owning a motor car.

by Duy Anh

According to a report from the National Financial Supervisory Commission (NFSC), GDP growth in the first half was lower than in the same period of 2015 but growth segmentation revealed positive growth in the economy over the long term.

CEO of Infocus Vietnam, Mr. Ralf Matthaes, has predicted that trends in goods spending in the upcoming years will not differ greatly from the NFSC’s predictions on economic growth.

In 2020, he said, Vietnam’s population will exceed Japan’s (which is currently experiencing a population decline) and rank fourth in Asia, behind China, India and Indonesia. The growing population will present new spending trends and changes over the next ten years. In particular, a dramatic increase in the size of the workforce and the appearance of smaller families will stimulate overall spending. Spending will therefore become a major factor in economic growth in general. Accordingly, an increase in the population along with urbanization will boost spending to higher levels.

Within the next ten years a new population class with high incomes, called “Vinavalet” (which currently stands at 10 per cent of the population) will be a major force in boosting spending on luxury goods and services, from BMW motor cars to uniquely-designed houses and luxury watches. The “Vinavalet” class is expected to strengthen overall spending, especially by spending more on luxury goods and services.

According to the CEO of Nielsen Vietnam, Mr. Vaughan Ryan, consumers these days are independent when it comes to spending, especially with the ongoing middle class explosion in Asian countries in general and in Vietnam in particular. In 2020 Vietnam’s middle class will triple the figure today, reaching some 33 million. Families will no longer have all generations under one roof as previously, and the younger generation is already tending to live on their own at an earlier age. This has led to growth in individual shopping compared to family shopping.

“Even though the top priority for Vietnamese consumers is still to save as much money as possible, spending on products for higher living quality like technology, cars, household products such as fridges and TVs, and travel has significantly increased over recent years,” Mr. Ryan said. “Consumers tend to be busy and so prefer products that bring the most benefits to their busy lives.”

Vietnam’s population of more than 90 million people and a high rate of young people earning higher incomes make the country a market of great potential for the motor car industry. In order to help customers realize their dream of car ownership, the Lien Viet Post Commercial Bank (Lien Viet Post Bank) has launched a “Lend to Buy Cars - Happy Together” program with interest rates of just 7.5 per cent per annum.

From July 19, 2016 to January 19, 2017, Lien Viet Post Bank will set its lending interest rate at only 7.5 per cent per annum (for 12 months) for individuals and 7.69 per cent per annum (for 12 to 36 months) for businesses. Those who join the program will be able to borrow up to 100 per cent of the value of the motor car for terms as long as 60 months.

Customers will also receive other incentives, especially in convenient lending procedures and quick disbursement, while businesses can optimize their business plans.

In differentiating its financial solutions, Lien Viet Post Bank always seeks to be a partner of its customers and bring satisfaction and garner trust.

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