Consumer lender honoured

What do you think are the main reasons PPF was honored?

This award is given to a company which has made a major contribution in Vietnam, differing from those  that only look for quick benefits and then quickly withdraw from the country. We have a strong commitment in Vietnam not only for business but also as a social responsibility and to deliver a trustworthy product that meets market demands. 

There are now many foreign investors in the consumer finance sector. What distinguishes PPF from its competition in the sector?

As a market leader in Vietnam, we have seen big growth  this year. We’re different from the others based on key pillars of responsible lending.

Firstly, we empower customers to make informed decisions, so they can decide whether or not our offer is valuable and affordable. Secondly, our products and processes are transparent and suit clients’ needs and situations. We always treat customers fairly and with respect. Meanwhile, our products have good accessibility through a vast and diversified POS network. In addition, we practice corporate citizenship: CSR activities, responsible lending,  and improve financial literacy.

We are still number one in the market and we are trying to hold this position. In this sector, it’s important to maintain a healthy financial reputation and there are only two or three companies which meet that standard. In an emerging market, companies find it easy to start or grow in the first phase, but the challenge lies in healthy performance over time.

We have a strong group history and have successful experience in diverse markets over nearly 20 years in consumer finance. In Vietnam,  I see some companies growing very fast and not investing in the right infrastructure and risk management. We are capable of managing risk, and we have the right tools to manage operations and fraud as well.

And these strengths contribute to our sustainable development and healthy performance, even in the crisis phase.

What are your main products in Vietnam and how well has PPF Vietnam performed?

Motorbike installment loans contribute most to our income. We are now growing faster in the consumer durables segment due to market conditions and our expertise in this product in many countries, including Europe and Asia. We use a tool that the Group has developed after many years of experience and adapt it to the Vietnam context.

How do you assess  the development potential of Vietnam’s consumer finance market in the near future?

I think there is great potential. There will possibly be a small increase in November  and December when people start their Tet shopping sprees. And we believe in the recovery of the market and increasing consumption. We can improve more as well.

The market is little improved and there will probably not be a boom in 2013. It will probably happen in the second half of 2014 or in 2015 after Vietnam overcomes the crisis and the government provides more support to developing this sector.

Consumer finance remains new in Vietnam and public awareness and understanding of its active contribution to the economy need to be improved.

Vietnam’s economy has been slowing in recent years. Has that impacted PPF and the consumer finance market?

No, in our sector we have not seen any negative impact. The reason is, simply, we are not a bank, we offer a different financial product and we fulfill special market needs.