The Vietnamese market experienced a decrease in deal volume in February 2024, attributed to the Lunar New Year festivities. Despite this, the total deal value reached USD 885 million, marking a significant increase of 361.9% compared to January 2023. This surge was predominantly driven by SCB X’s strategic acquisition of Home Credit Vietnam, which accounted for approximately USD 870 million of the total value.
SCB X Public Set to Acquire Home Credit Vietnam for c. USD870 million
SCB X Public Company Limited has made a significant move by agreeing to acquire Home Credit Vietnam Finance Company Limited from PPF Group N.V. The deal, valued at VND20,973 billion — roughly THB31 billion — was settled on February 28, 2024. Completion of this transaction is anticipated in the first half of 2025, pending regulatory approvals.
Vietnam’s consumer finance sector is poised for substantial growth within Southeast Asia, bolstered by robust macroeconomic foundations, growth-oriented economic policies, a favorable demographic profile, and an expanding middle class. Home Credit Vietnam commands a formidable presence in this market, holding the second-largest share, about 14%, as of June 30, 2023. This follows a notable earlier market shake-up in 2021 when VPBank divested a 49% stake in FE Credit to Sumitomo Mitsui Finance Group (SMFG), placing the non-bank lender’s valuation at USD2.8 billion.