The Societe Generale Viet Finance (SGVF), a subsidiary of Societe Generale Group, opened for business on September 6 in Ho Chi Minh City.
The company will begin by offering consumer credit at two Honda outlets starting on September 7. SGVF hopes to add another 6-8 outlets a week in October.
The company plans to expand into other services including financial consulting and card issuance.
“Viet Nam is now the world’s focus and since it has become a WTO member, foreign investment has been increasing and is expected to create economic miracles in years to come,” said the SGVF general director Philippe Lenain.
The Vietnamese have the habit of saving in order to purchase home appliances, he said. The number of young middle-class consumers is growing and are being targeted by producers of high-quality goods.
“Fully aware of this potential, we prepared carefully, including researching the market and consumption habits of the Vietnamese before setting up our business here,” said Lenain.
The business would initially offer consumer finance products in a wide range of shops including motorcycle dealerships, home appliance shops and furniture showrooms. Later, financed goods will become more diversified.
“We will focus on small loans starting as little as VND3 million and up to VND200 million . Our rates will vary depending on the duration and amount of the loan, as well as the goods financed, but we will in any case follow the market’s rates,” he said, adding that the loans were non-collateral ones.
This US$20 million company plans to set up business in Ha Noi next year, then to other major cities and locations in the country within the next three years.