Czech conglomerate PPF urged to expand operation in Vietnam after Home Credit Vietnam stake sale

The Czech Republic’s multinational conglomerate PPF Group should expand its operation in Vietnam after selling its entire stake in subsidiary Home Credit Vietnam to Thailand's Siam Commercial Bank (SCB), Prime Minister Pham Minh Chinh said in Prague on Sunday.

The Vietnamese leader made the statement while meeting with Jiri Smejc, CEO of PPF Group, and Radek Pluhar, CEO of the group's subsidiary Home Credit, during his official visit to the European country.

According to Jiri Smejc, PPF Group boasted total assets exceeding €43 billion, or $44.3 billion, and a net profit of €1.45 billion ($1.49 billion) in 2023, with 55,000 employees across 25 countries. The group operates in various sectors, including financial services, telecommunications, media, biotechnology, real estate, and transportation solutions.

Home Credit Vietnam, established in 2008, had recorded a total equity of over VND7 trillion ($276.7 million) as of June 30, 2024, serving 16 million customers across 63 provinces and cities.

Jiri Smejc stressed that PPF, one of Central and Eastern Europe's largest financial groups, considers Vietnam an important partner, where it has achieved promising business results.

Highlighting effective business activities of PPF in general and Home Credit Vietnam in particular, PM Chinh said the group should explore opportunities and expand its operations in Vietnam, as the country always sees the success of investors as its own.

Regarding PPF’s proposals, the Vietnamese leader affirmed that relevant authorities would handle procedures related to its Home Credit Vietnam stake selling plan in accordance with regulations. He encouraged the company to maintain close coordination with the State Bank of Vietnam, the Ministry of Finance, and other relevant agencies to resolve existing issues.

PM Chinh assured PPF and other Czech investors that the Vietnamese Government is committed to creating a favorable environment for their sustainable and effective business activities in the country.

On February 28, 2024, Home Credit announced the signing of a conditional framework agreement to transfer its entire stake in Home Credit Vietnam Finance to Siam Commercial Bank Public Company Limited (SCB), a member of SCBX Public Company Limited (SCBX), for around €800 million ($824.5 million).

The handover process is expected to be completed in the first half of 2025, after approvals from relevant authorities of Vietnam and Thailand.

As of June 30, 2023, Home Credit Vietnam had held a 14% market share in Vietnam's consumer finance market, making it the second-largest player in the sector.