Thai fintech firm plans to complete acquisition of Home Credit Vietnam in early 2025

Thailand’s fintech giant SCB X has announced a plan to complete its acquisition of Home Credit Vietnam Finance Co, the consumer finance arm of Home Credit NV (Home Credit Group), in the first half of 2025, pending regulatory approval.

On February 28, 2023 SCB X announced that it entered into a sales and purchase agreement via Siam Commercial Bank (SCB) to acquire the entire charter capital of Home Credit Vietnam Finance Co for around THB31 billion ($907.49 million).

Founded in 2008, Home Credit Vietnam has become a leading player in Vietnam's consumer finance sector. It offers a range of financial products, including consumer durable loans, revolving loans, cash loans and two-wheeler loans, targeting the mass and upper-mass market segments.

Since its inception, the company has served over 15 million customers and established a robust presence across Vietnam, operating 14,000 points of sale.

Over the past decade, it has achieved a compound annual growth rate of 18.7% in total assets, showcasing the efficiency and potential of its operations.

The company boasts an extensive omnichannel distribution network that seamlessly integrates online and offline channels to enhance the customer experience. It also maintains a strong risk management framework, efficient collection capabilities and advanced digital infrastructure

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

Vietnam's consumer finance market, one of the fastest-growing in Southeast Asia, benefits from strong macroeconomic fundamentals, growth-oriented policies, favourable demographics and an expanding middle class.

Arthid Nanthawithaya, chief executive of SCB X, said the acquisition marks a significant milestone in SCB X's journey to becoming a leading regional financial tech group. The strategic move strengthens the group's presence in a high-growth Southeast Asian market, while increasing shareholder value and delivering long-term returns, he said.

Vietnam, with its dynamic economy averaging 7.5% GDP growth over the past decade and its tech-savvy population, is a key strategic market for SCB X. This acquisition signals the beginning of SCB X's expansion into a country with more than 100 million people, said Arthid.

Home Credit Vietnam's strong customer base of 15 million, extensive network of 14,000 point-of-sale locations and experienced management team - comprising both European and Vietnamese members - will serve as a solid foundation for SCB X's presence in Vietnam, he underlined.

Home Credit Vietnam will serve as a vital foundation for the SCB X Group's presence in Vietnam, contributing to the group's bottom line immediately upon the deal's completion, he said.

The acquisition enhances the group's income diversification for long-term stability, while ensuring that both SCB X and the bank maintain strong capital adequacy ratios post-transaction, Arthid stated.

As one of Southeast Asia’s fastest-growing markets, Vietnam benefits from solid macroeconomic fundamentals, pro-growth policies, favourable demographics, and an expanding middle class, making it an ideal destination for consumer finance enterprises.