Prudential launches Vietnamese personal finance business

by Gill Montia

Story link: Prudential launches Vietnamese personal finance business

Prudential has launched a consumer finance business in Vietnam.

The group, which is the second-largest insurer in the UK, is one of only a few foreign financial institutions to have secured an operating licence in the country, which boasts one of the fastest growing economies in Asia.

The company has had a presence in the country since 1999, when it set up its insurance business.

Late last year, it launched a Vietnam Finance division, providing personal loans of up to $2,500, and now has plans to expand the business to include mortgages and credit card accounts.

Both personal and corporate lending is increasing rapidly in the country, with the Vietnamese central bank forecasting a rise of around 38% in 2007/08.

Prudential’s earlier foray into personal lending was with its jointly-owned venture, Egg. This proved to be loss-making and was sold to Citigroup in January 2007.

The new operations will be based in Ho Chi Minh City.