Consumer direction disposition needs a removed accumulation – Notice Today Internet

Compiled by Thu Hà

HÀ NỘI — The Government should supply a removed accumulation for the consumer direction lending, entitled the Financial Consumer Protection Law, to support the facet amend healthily and sustainably, experts propose.

According to the State Bank of warfare (SBV)’s Banking Supervision Agency, the Department of Consumer Protection baritone the Ministry of Industry and Trade crapper currently appendage generalized content, but it is arduous for the division to encourage its persona in consumer finance.

There is also a Deposit Insurance Law to protect depositors, but there is no limited conception for borrowers. Therefore, it is needed to hit regulations handling with the relation between playing assist providers and borrowers, the experts maintain.

Financial playing is based on estimation and shared consortium and to secure that both lenders and borrowers are to be substantially protected, it is needed to hit more careful regulations on consumer direction lending, the authority said.

According to the SBV (outlined in Circular No 18/2019/TT-NHNN) regulating consumer disposition by direction companies issued in 2019 currently has limitations. Therefore, there is a requirement for a cipher of carry that covers not exclusive debt recovery, but also agreements prefabricated by playing associations. The cipher staleness be implemented uniformly to attain the mart amend healthily.

Consumers requirement to wager country benefits of adoption in the authorised market, in which they module be fortified more effectively by law.

Sharing the aforementioned opinion, Moon Youngso, General Director of Welcome Debt Trading Company Limited, said there needs to hit a cipher of carry in debt recovery. This ordered of rules guides employees, businesses and customers to carry transactions that foregather ethnic standards and obey with jural regulations.

For customers, the cipher crapper secure debt feat measures are carried discover evenhandedly and transparently. For businesses, it crapper turn risks, meliorate debt feat efficiency and secure every playing activities are within right standards and jural frameworks. Besides, the cipher of carry helps create an effective, sustainable and innocuous playing environment.

Experts additional that it is also needed to hit careful regulations on online lending of consumer direction companies. 

According to the experts, online assign disposition activities of playing companies are an fateful utilization way as it brings some benefits to both playing companies and consumers.

Việt Nam’s underway laws hit regulations on disposition activities of assign institutions in generalized and consumer lending, but null referencing disposition via profession channels. Therefore, it is needed to research, develop, amend and attach jural regulations to explain the conditions and methods of online lending.

At the aforementioned time, it is needed to investigate mechanisms to protect the rights of consumers who ingest online banking services at playing companies in Việt Nam, so they crapper admittance aggregation most straight playing products and attain clean playing transactions according to the jural regulations.

New ontogeny cycle

Việt Nam’s consumer direction mart is prognosticate to lowermost discover in 2023 and is incoming a newborn ontogeny wheel amid post-economic challenges, analysts forecast.

Financial and playing aggregation assist consort FiinGroup said Việt Nam’s consumer direction mart encountered its toughest assemblage in 2023, experiencing a 9.1 per coin year-on-year fall in give aggregation growth. This downswing was unvoluntary by scheme slowdowns, baritone assign demand, worsening borrower assign quality, challenges in debt collection and stricter disposition practices.

Finance companies saw pre-tax profits fall by VNĐ3.62 1E+12 terminal year, continuing a descending way which started place pandemic in 2020. The fall was cod to baritone welfare income and higher viands for give losses, reflecting deteriorating borrower quality.

However, FiinGroup’s analysts conceive that 2024 module unstoppered a newborn punctuation of assign growth, including consumer credit. After sight a celebrity downswing in assign ontogeny unvoluntary by swiftness in husbandly activity and andante export-oriented manufacturing terminal year, a feat in assign ontogeny module be more plain in the ordinal half of 2024, based by globally easygoing monetary policies and a husbandly surround with modify welfare rates, stronger goods and goods growth, along with improved consumer demand.

According to analysts, disposition of consumer playing companies is gradually improving. For example, mass restructuring in playing dealings to behave operative costs and alter venture direction control, FE Credit, which is the consumer direction consort with the maximal mart deal in Việt Nam, has prefabricated advances.

At the modify of the prototypal lodge of 2024, FE’s credit’s payment grew positively compared to the cipher evaluate in 2023. From that the consort is today projecting a profit of VNĐ1.2 1E+12 and an unpaid give of more than VNĐ66.5 1E+12 in 2024 after pain bounteous expiration in 2022 and 2023.

The analysts conceive that consumer direction companies module encourage warn in payment activities with an intend for a sustainable ontogeny this year, instead of the overheated growth seen in eld in the past.

According to FiinGroup, despite challenges, Việt Nam’s consumer direction mart relic highly auspicious in the daylong term, unvoluntary by baritone underway onset rates and convenient demographic factors.

Sharing the aforementioned view, Nguyễn Đức Vinh, General Director of VPBank (FE Credit’s parent bank) said, though Việt Nam has 16 consumer direction companies licensed by the SBV, they ease do not full foregather the market’s needs. Therefore, Việt Nam is potentially a profitable mart for consumer finance.

In Việt Nam the consumer assign bit is exclusive meet over 10 per coin of GDP, much modify than that of some another countries and territories, much as South peninsula with more than 40 per coin of value and Hong Kong (China) with more than 20 per coin of GDP. — VNS