PPF Vietnam ready to buy into consumer dream

What are your business development plans in Vietnam after years of working in Europe’s financial sector?

The big difference between the European and Vietnamese markets is the high demand of using scooters and motorbikes which is also the main product for loans provided by PPF in Vietnam. On the contrary, loans to purchase consumer durables are the main European market products which have not much developed in Vietnam yet. I intend to promote and develop loans to purchase consumer durables in Vietnam.

Currently, 65 per cent of loans provided by PPF in Vietnam were used to purchase scooters and motorbikes, 22 per cent to purchase consumer durables and the remaining 13 per cent for cash credits. After three years of operating in Vietnam, PPF is now present in 44 cities and provinces. However, with State Bank consumer finance sector regulations, we will not open additional operation areas this year.

With such State Bank restrictions, will PPF enjoy satisfactory business results in 2012?

The allowed growth rate for this year is 8 per cent which is considered a completely reasonable policy for the State Bank to manage banks and the financial sector to curb inflation. However, it will make it difficult for us because we will have to restrain our growth rate. We hope that in the next time, the policies will be relaxed for our further development. In fact, many customers prefer paying immediately for their goods.

Is there a gap between market outlooks and the reality when it comes to consumer finance?
Vietnam has young population, so the market has developed. About 20 per cent of the young cannot afford many products. So, there is a big market for Home Credit.

How many partners and manufacturers does your company cooperate with?

There is a significant difference between Vietnam and Europe. We cooperate with 10 Europe partners, but it is completely different in Vietnam because we work with more than 1,000 partners, just small- and medium-size enterprises Besides working with retailing stores, we also cooperate with the manufactures to carry out some introducing products programmes. In 2012, Home Credit promotes cooperation relationships with many new partners such as  Nokia, Samsung and LG.

Could you tell us more about your firm’s development plans this year?

We do not have any plans for new products, so we focus on improving service process and quality. We have short and long-term plans for human resources development firstly to encourage and raise profession knowledge for our officers and then hold capable ones.  

PPF has been in Vietnam for three years and has had some success. Can you share some of the know-how?

In reality, we do not have any secrets or know-how. We just do our best as we know that the clients usually want to use quick credit service when purchasing products. That seems to be our outstanding strong point as compared with other competitors which makes up our trademark and gives Home Credit  the top position in Vietnam’s consumer finance market.n