The SCBX Public Company Limited (SCBX) has announced that the Siam Commercial Bank Public Company Limited (SCB) has signed a sale and purchase agreement to acquire 100 per cent of the charter capital of Home Credit Vietnam, the consumer finance business of Home Credit Group in Vietnam, for a consideration of approximately VND20.973 trillion (approximately $873 million).

The transaction is expected to be completed by the first half of 2025, subject to approvals from the relevant competent authorities.

Mr. Arthid Nanthawithaya, CEO of SCBX, said the acquisition of Home Credit Vietnam marks a significant milestone in SCBX’s journey to become a regional financial technology group. “This strategic acquisition strengthens our presence in the high-growth ASEAN market and also increases value and maximizes return to our shareholders in the long term,” he added.

Vietnam, he went on, with its dynamic economy averaging 7.5 per cent GDP growth over the past decade, and a tech-savvy population, is a key strategic market for SCBX. This acquisition marks the beginning of SCBX Group’s expansion into Vietnam, a country with a population of over 100 million.

“In addition, Home Credit Vietnam will serve as an important base for the SCBX Group’s presence in Vietnam and immediately contribute positive bottom line to the group after deal completion,” he added. “This acquisition also diversifies the group’s income base for future strength, while maintaining superior capital adequacy ratio both at SCBX and the bank after the completion of the transaction.”

Home Credit Vietnam is part of the Home Credit Group, which was established in 1997 in the Czech Republic. The Home Credit Group operates in multiple countries across Asia and Europe and is owned by the PPF Group, a leading international investment company.

Home Credit Vietnam has served a cumulative total of 15 million customers since its launch and has established a strong presence throughout Vietnam with 14,000 point-of-sale locations.

It has the second-largest market share in Vietnam’s consumer finance market, accounting for approximately 14 per cent of the total market as of June 30, 2023.

“We are passing the baton to new owners and I am confident the business has an even brighter future,” said Mr. Radek Pluhar, CEO of Home Credit Group.

The consumer finance market in Vietnam has high growth potential, driven by strong macro-economic fundamentals, economic policies that support growth, favorable demographics, and a growing middle class.