According to a recent survey, Vietnamese people at the age of 21-29 use banking services more than other age groups.

Up to 80 percent of housing and car installment contracts belong to
people at the age of 21-29 years old.

Trang, an 8X (a term used in Vietnam to describe the generation born in the 1980s) girl working for a non-governmental British organization in HCM City, plans to buy a VND5 billion ($250,000) villa in HCM City while she has only VND500 million ($25,000). Trang said she would borrow VND4.5 billion from banks.

Trang’s plan may make the middle-aged jump.

“I would never think of purchasing a house if I have only ten percent of the needed sum. Even when I have more than enough money, I never think about it because I worry that if I invest all my money in the house, I will not have savings when a family member is sick or in other emergency situations,” said Thuy, a middle-aged woman from Hanoi.

Meanwhile, many young people, who are less than 30, do not hesitate to borrow from banks to buy houses, shares and cars.

A recent survey shows that Vietnamese youth use loan services eagerly. They consider them to be good opportunities to invest and to earn high profit.

Accordingly, banking service users at the age of 21-29 use the average of 2.3 banking services while the average is 1.9 services. Some 91 percent of people below 30 have banking accounts. The rate is 55 percent for people above 30. Around 89 percent of people below 30 have credit cards in comparison with 40 percent for those above 30.

Notably, more than 75 percent of users of e-banking services, especially online shopping, are customers below 35.

Linh, 24, from Hai Ba Trung district, Hanoi, has just borrowed VND100 million from a joint stock bank. She said before getting the loan, she joined a banking forum to find out more about banking services.

The young are also keen on consumption loans. Up to 80 percent of housing and car installment contracts belong to people at the age of 21-29 years old.

Son, 25, marketing manager of a real estate firm, said he now took three loans to pay the installment for two apartments and a car. “I can’t wait until I save enough money to be able to buy houses and cars without taking out loans. Perhaps I would be an old man that time,” he said.

Experts say that Vietnamese youth should be taught financial management before it becomes too late.

PV