Vietnam Supply Chain Finance Market, By Offerings (Export & Import Bills, Letter of Credit, Performance Bonds, Shipping Guarantees, Others); By Provider (Banks, Trade Finance Houses, Others); By Application (Domestic, International); By End User (Large En

Vietnam Supply Chain Finance Market Booming at Robust 10.96% CAGR During 2024–30

Vietnam Supply Chain Finance Market is flourishing because of a growing demand for credit from SMEs and the rapid adoption of advanced technologies, such as blockchain.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, expects Vietnam Supply Chain Finance Market to expand at a significant CAGR of 10.96% during the forecast period between 2024 and 2030. Major growth drivers for Vietnam Supply Chain Finance Market include growing complexity of global supply chain and the rising need for financing among small and medium-sized businesses (SMEs). Over the forecast period, Vietnam Supply Chain Finance Market is also projected to grow, due to an increasing number of agreements and joint ventures by industry players to improve financial access and supply chain finance sustainability by aiding services and adopting cutting-edge services like blockchain.

Opportunity: Rising Demand for Supply Chain Finance among SMEs

Small and medium-sized enterprises (SMEs) are major contributors to Vietnam’s GDP and economy. However, they face substantial challenges in the face of liquidity and lack of access to short-term loans from traditional institutions. Supply chain finance (SCF) is emerging as an option for SMEs to overcome their financial restraints through these solutions. SCF helps SMEs to maintain liquidity that allows them to expand their operations and meet market demands efficiently. Moreover, these short-term loans also require no collateral as well as offer low interest rates, which boosts their demand and propels Vietnam supply chain finance market growth.

Impact of Escalating Geopolitical Tensions on Vietnam Supply Chain Finance Market

Escalating geopolitical tensions are anticipated to hinder the growth of Vietnam Supply Chain Finance Market. The supply chain industry in Vietnam is mostly reliant on larger economies, such as United States and China. However, as investors are hesitant to establish businesses in areas that are viewed as unstable, geopolitical tensions may hinder foreign direct investment (FDI) in Vietnam. Supply chain finance providers may raise interest rates in response to high risks associated with shipments or deliveries of goods from overseas, especially from sensitive areas like the Middle East. This could raise operating costs and prevent MSMEs from accessing these tools.

Banks Segment Accounts for Largest Share of Vietnam SCF Market

The banks segment holds the largest share of Vietnam Supply Chain Finance Market by provider. Banks are considered the most trusted and accessible provider of supply chain finance as they offer various products, including letters of credit, shipping guarantees, and others. Along with these products, banks provide customization as well in their offerings to meet the needs of their diverse clientele. They also assist organizations to mitigate risks, including financial risks, associated with the supply chain. However, trade finance houses are also projected to register significant growth during the forecast period as they particularly cater to international trade and ensures exporters the paid timely to maintain their cashflow.

Competitive Landscape

Vietnam Supply Chain Finance market is intensely competitive, as a number of companies are competing to gain a significant market share. Key players in the market include Bank for Investment and Development of Vietnam, HSBC, HDBank, VPBank, Veefin, Standard Chartered Bank, and TASConnect.

To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

The in-depth analysis of the report provides information about growth potential, upcoming trends, and Vietnam Supply Chain Finance Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Vietnam Supply Chain Finance Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
Show more