Finance

Personal finance planning vital yet neglected in Việt Nam: forum

Published

1 year ago

August 6, 2023

Personal finance planning vital yet neglected in Việt Nam: forum

Dr Lê Minh Nghĩa, chairman of Việt Nam Financial Consultants Association, speaks at the forum on developing the personal finance market in Việt Nam organised late last week in HCM City. — VNA/VNS Photo

HCM CITY — Việt Nam’s personal finance market is facing challenges, primarily stemming from a lack of financial literacy and limited access to educational resources, experts said.

Dr Lê Minh Nghĩa, chairman of Việt Nam Financial Consultants Association (VFCA), highlighted the challenges during a forum on developing the personal finance market in Việt Nam organised late last week in HCM City.

The problems faced by individuals in securing their financial future and achieving their financial goals have been exacerbated by unreliable and shallow resources on personal finance available on the Internet, he said.

Findings from a survey conducted recently in Hà Nội further supported these concerns, with over 80 per cent of respondents admitting to having little interest and knowledge in personal finance.

As a result, individuals are ill-equipped to make informed financial decisions, lacking essential knowledge in budgeting, saving, investing, and managing debt, he added.

Consequently, people fail to set aside funds for emergencies, secure effective retirement plans, or accumulate wealth sustainably, according to Nghĩa.

The lack of financial literacy also leaves individuals vulnerable to financial fraud and misconduct, he warned.

“Without a solid understanding of financial concepts and practices, there is an increased risk of falling into the clutches of loan sharks or making premature withdrawals of social security benefits, he said.

“Individuals may also struggle to differentiate between various financial products, such as bank savings and corporate bond purchases or flexible savings products and life insurance products, leading to poor investment decisions,” he noted.

Financial education

Cấn Văn Lực, a member of the National Financial and Monetary Policy Advisory Council, said personal finance planning remains limited as debt management ability, understanding, and knowledge of personal financial planning need improvement.

Lực proposed enhancing financial education such as to include financial education in school curricula and develop targeted programmes for adults, such as workshops, seminars, and online platforms.

These initiatives would provide individuals with practical knowledge and skills to effectively manage their personal finances, he said.

In addition, the Government should play an active role in promoting financial literacy and consumer protection by implementing policies and regulations that ensure ethical practices and protect the interests of consumers, he added.

Dr Nghĩa said regulatory bodies should strengthen their oversight and review the practices of financial advisors and institutions regularly to ensure compliance with ethical standards.

Experts also recommended incentives and tax benefits be introduced to encourage a savings culture and long-term financial planning.

For instance, tax breaks can be offered to individuals who contribute to retirement plans or dedicate a portion of their income to savings, they noted.

These incentives would motivate individuals to prioritise their financial future and develop healthy saving habits.

Collaboration with employers can also play a significant role in promoting personal financial planning.

Companies can partner with financial institutions to provide financial wellness programmes and education to their employees.

By incorporating financial wellness into the workplace, employers can empower their employees to make informed financial decisions, alleviate financial stress, and foster a more financially secure workforce.

The forum was co-organised by VFCA in cooperation with the HCM City-based Văn Lang University. — VNS

Click to comment

Finance

Trading house Itochu looks to finance Seven & i management buyout

Published

7 hours ago

November 25, 2024

Press Room

Trading house Itochu looks to finance Seven & i management buyout

Trading house Itochu Corp. is considering helping finance the potential buyout of Seven & i Holdings Co. by its management, responding to a request from the founding family of the Japanese retail giant, sources close to the matter said Monday.

Itochu, the parent of convenience store chain operator FamilyMart Co., is apparently in the initial phase of the study, the sources said. The move could complicate the around 7 trillion yen ($45 billion) buyout offer by Canada’s Alimentation Couche-Tard Inc. toward Seven & i.

File photo taken in March 2024 shows Itochu Corp.’s Tokyo headquarters in Minato Ward. (Kyodo)

The Seven & i founding family, which anticipates a management buyout worth 9 trillion yen, has also contacted some banks and investment funds, according to the sources.

Alimentation Couche-Tard, the operator of Circle K convenience stores, has raised its buyout offer from the initial offer of around 6 trillion yen.

With its possible participation, Itochu may expect some synergies between FamilyMart and Seven-Eleven, two of the leading convenience store chains in Japan. But it could also cause antitrust issues because of their dominance in the industry, and Itochu may need to keep its investment ratio low, the sources said.

Related coverage:

Seven & i mulls management buyout to fend off Canadian takeover bid

Seven & i unveils 1.7-fold sales growth plan amid takeover pressure

Japan retailer Seven & i reveals its own strategy amid takeover offer

Finance

Gen-Z outpaces millennials in setting 5-Year financial plans amid economic challenges

Published

15 hours ago

November 25, 2024

Press Room

Gen-Z outpaces millennials in setting 5-Year financial plans amid economic challenges

Gen-Z adults are more likely than Millennials to have a five-year financial plan, according to a new survey by First Direct. The survey, conducted by OnePoll in October among 4,000 participants, found that 59% of Gen-Z savers—those born after 1996—have set financial goals for the next five years, compared to just 40% of Millennials (born between 1981 and 1996).

Compared to Millennials, Gen-Z individuals are more likely to have a five-year financial plan

Despite a challenging economic environment, including rising living costs and wage stagnation, both generations remain committed to achieving their financial aspirations. Around 73% of Gen-Z respondents and 76% of Millennials said they are determined to reach their financial goals, though many have had to delay milestones like home ownership or career progression.

Also read: Andhra achieves 10.44% growth in GSDP in 2023-24, shows economic survey report

For Millennials, the most common financial goals include achieving a better work-life balance (34%), saving for retirement (29%), and increasing income (29%). However, half (50%) of Millennials reported that the cost-of-living crisis has delayed their financial plans, with economic uncertainty and stagnant wages cited as major factors.

Carl Watchorn, head of banking at First Direct, commented, “Younger people have very high aspirations when it comes to achieving their financial goals. Despite facing challenges like higher living costs and the aftermath of the pandemic, they remain incredibly resilient and committed to improving their standard of living.”

Also read: Micro-mance to future-proofing: Dating trends 2025 for Genz and millennials

Tips for Financial Resilience

-First Direct also shared several tips for boosting financial resilience, including:

-Speak to your bank about available tools and support.

-Set specific goals, such as saving for a trip, and adjust spending to meet those targets within a set timeframe.

-Use budgeting apps to track spending and compare it with your goals.

Also read: Rural women entrepreneurs: Overcoming economic & social adversities

-Build a financial buffer by setting aside a regular amount each month, with some financial products offering good returns for consistent savings.

As both Gen-Z and Millennials navigate economic pressures, their focus on long-term financial planning highlights a generation committed to securing a stable future.

Finance

Hyundai Capital Services Marks Another Major Milestone, Launches Hyundai Finance in Australia

Published

23 hours ago

November 24, 2024

Press Room

SEOUL, South Korea, Nov. 25, 2024 /PRNewswire/ — Hyundai Capital Services (“Hyundai Capital” or the “Company”), the financial subsidiary of the Hyundai Motor Group, announced today launch of its finance options for Hyundai Motor Company in Australia. This launch marks another significant milestone for the Company, with Australia being the 12^th overseas financial subsidiary of Hyundai Capital.

Hyundai Capital Australia Pty Ltd (“HCAU”) aims to offer products tailored to the passenger vehicles of Hyundai dealerships and Genesis showrooms in Australia. HCAU has started servicing and providing exclusive financial solutions for Genesis in October. This launch of Hyundai Finance, together with Genesis Finance, marks the beginning of HCAU’s drive of auto financing business in Australia.

Leveraging the global credit ratings of Hyundai Motor Company, HCAU designed competitive rate loan products for its customers and introduced flexible and personalised financial services tailored to each vehicle.

For example, the Guaranteed Future Value* (“GFV”) is HCAU’s premier offering for the Australian market. The GFV loan guarantees a minimum resale value of the vehicle, which enables to lower monthly payments compared with traditional financing, making Hyundai vehicles more accessible with flexible end of term options. When the loan matures, customers can choose to:

Trade-in: the vehicle’s value is used towards repaying the loan. If the trade-in value is higher than the GFV, the positive equity can be used towards a new vehicle.
Keep: pay the GFV amount to own the vehicle outright.
Return: return the car with no further payments, provided it meets the agreed upon fair wear and tear and kilometres driven conditions.

HCAU seeks to lead the auto financing market in Australia with its seamless and convenient digital financing services. With the global IT system developed and implemented by Hyundai Capital, HCAU offers a streamlined, digital finance application process. HCAU has improved the efficiency of its underwriting process through online document submission and system auto-approval functionality. Furthermore, HCAU introduced an AI chatbot service that operates 24/7, enhancing customer convenience to the next level.

“We are proud to introduce our full offering of auto financing products and services to our Australian customers who are already using or looking to purchase a Hyundai or Genesis vehicle at their respective dealerships,” said Hyung-Jin David Chung, CEO of Hyundai Capital. “With our strong partnership with Hyundai Motor Group, Hyundai Capital Australia will offer highly differentiated products and services to meet all of our customers’ needs.”

He added, “Hyundai Capital will continue to expand its business reach in key strategic markets to promote Hyundai Motor Group’s global sales growth.”

* GFV is for approved applicants only and is subject to fair wear and tear and kilometres driven conditions. Applicable terms, conditions, fees, charges and lending criteria apply.

SOURCE Hyundai Capital