Binh Thuan, April 19, 2024, VietCredit Joint Stock Company (TIN) held its 2024 Annual General Meeting of Shareholders.
In 2023, Vietnam witnessed a series of challenges from the global economic environment, especially inflationary pressure and high interest rates, affecting credit demand and asset quality in the consumer finance sector in Vietnam. A report from the Vietnam Banking Association (VNBA) indicated a slowdown in consumer loan growth, reaching only 1.53%, significantly lower than the average growth rate from 2018-2022, and a non-performing loan ratio of 3.7%.
Against the backdrop of the overall economic situation, Vietcredit also faced difficulties in 2023. However, by proactively adjusting its strategy and quickly adapting to market fluctuations, the company strived to achieve encouraging results in 2023 as follows:
- Total assets reached VND 6,850 billion, an increase of 5% compared to the same period in 2022;
- Total mobilized capital reached VND 5,757 billion, an increase of 7% compared to the end of 2022;
- Outstanding credit balance reached VND 4,621 billion, an increase of 5% compared to the end of 2022.
Entering 2024, VietCredit recognizes that the economic situation will continue to present many difficulties and challenges directly affecting business operations. “To respond flexibly in operational management, we have developed a business plan for 2024 with a policy of boldly experimenting with major changes while maintaining strict, continuous, and timely control. We are urgently changing our organizational structure to drastically reduce operating costs,” a company representative shared.
VietCredit has also clearly outlined its 2024 plan and direction, including flexible management to suit market developments; continuing to implement and complete the plan to increase charter capital; “accelerating and breaking through in digitalization” in lending activities; strengthening governance and human resource development; focusing on investing resources in risk management; and pursuing a sustainable business development strategy.
VietCredit held its 2024 Annual General Meeting of Shareholders.
At the meeting, the key business targets for 2024 were approved by the General Meeting of Shareholders, including:
● Outstanding credit balances are projected to reach VND 5,183 billion, an increase of 12.2% year-on-year;
● Total net operating income is projected to reach VND 1,446 billion, an increase of 1.2% year-on-year;
● Total pre-tax profit is projected to reach VND 51 billion, an increase of 131.5% year-on-year;
● Total assets are projected to reach VND 6,334 billion, adjusted to 92.4% year-on-year;
● Total mobilized capital is projected to reach VND 5,210 billion, adjusted to 90.5% year-on-year.
A representative from VietCredit added: “In 2024, we will focus on developing our target customer base and selling new core products; establishing a Digital Lending Center (DLC) to seize business opportunities while the market still has significant growth potential.”
VietCredit believes that key business activities in 2024 will include focusing on developing target customers and boosting new sales of core products, striking the best balance between: Profit margin – Approval rate – Sales team performance – Competition with rivals – and alignment with macroeconomic factors.
With a focus on digital lending, the DLC will be newly established this year. The company will deploy and operate lending products on a digital platform using a flexible and unique mechanism to quickly bring products to market and seize business opportunities while the market still has significant growth potential.
Simultaneously, VietCredit will continue to monitor the credit quality of its entire portfolio; review and strictly manage operating expenses to ensure the overall profit target of the entire company.
In 2024, VietCredit aims to continue processing and recovering off-balance sheet non-performing loans to reduce non-performing assets when sufficient financial resources are available.
Also at the General Meeting, the VietCredit leadership answered many questions regarding the company’s direction that shareholders were interested in. Simultaneously, the General Meeting of Shareholders approved several important items, including:
- The Board of Directors’ report on the 2023 operating results and the 2024 operating direction;
- The Executive Board’s report on the 2023 operating results and the 2024 operating direction;
- The Supervisory Board’s self-assessment report on the 2023 operating results and the 2024 operating direction;
- The Supervisory Board’s self-assessment report on the 2023 operating results and the 2024 operating direction;
- A proposal for the approval of the audited financial statements and profit distribution plan for 2023;
- A proposal for amendments and additions to the company’s charter; a proposal for the dismissal and election of additional members of the Supervisory Board for the 2023-2028 term and the regulations for electing members of the Supervisory Board at the 2024 annual general meeting of shareholders;
- A proposal regarding the remuneration for members of the Board of Directors and Supervisory Board in 2024;
- A proposal regarding the change of the company’s head office location;
- A proposal regarding the continuation of the company’s 2023 charter capital increase plan.
The General Meeting also voted and elected additional members of the Supervisory Board for the 2023-2028 term to ensure the company’s stable operation in the future.
Through the implementation of decisive business strategies, VietCredit is strengthening its solid foundation to ensure sustainable development and flexible adaptation to market fluctuations. Under the leadership of the Board of Directors and the Executive Board, and with the determined efforts of all employees, VietCredit aims to focus its resources on achieving and exceeding the business targets set by the General Shareholders’ Meeting in 2024.
About VietCredit
With 15 years of business and development, VietCredit Joint Stock Financial Company is continuously growing and expanding its consumer finance business for individual customers in the Vietnamese market.
Currently, VietCredit is a pioneering financial company providing domestic credit cards – one of the optimal solutions in the consumer finance market today. To date, VietCredit holds 50% of the domestic credit card market share in Vietnam, serving approximately 500,000 customers nationwide.
In December 2021, VietCredit became a listed company on the UPCOM stock exchange with the ticker symbol “TIN”, marking a new stage of development for the company.
During its operation, VietCredit has achieved many prestigious awards:
● For three consecutive years, VietCredit was recognized as “Best Workplace in Asia 2021-2023”;
Top 10 in the FAST500 ranking – TOP 500 Fastest Growing Companies in Vietnam for two consecutive years 2021-2022;
● Top 500 Largest Companies in Vietnam 2021-2023 (VNR500) announced by Vietnam Report;
● Top 10 Leading Brands organized by the Vietnam Business Information & Communication Center in collaboration with the Institute of Business Culture;
● Top 10 Strong Brands – Financial Services Sector organized by Vietnam Economic Times Magazine;
● Domestic Credit Card in Vietnam Award presented by The Asian Banker – a leading magazine evaluating and ranking in the Finance and Banking sector, established in 1996;
● The title “Outstanding Unit in Credit Information Reporting Activities in 2023” was awarded by the Vietnam National Credit Information Center (CIC).