VietNamNet Bridge - The number of cards issued by small and medium-sized commercial banks and the payment value via cards increased sharply by 55 percent in a two-year period.


The card payment market has been remapped recently. The market share held by the two big guys Agribank and VietinBank has dropped significantly. Dong A has been weeded out from the list of five most powerful banks in card services.

A report of the State Bank of Vietnam showed that domestic payment transactions via bank cards had increased by 45 percent by September in terms of number of transactions and 31 percent in terms of value compared with 2014.

Analysts predicted rapid growth in payment via cards thanks to e-commerce development and the people’s improved income, which has prompted young families to shift to making payment in cards. Meanwhile, banks now tend to loosen the requirements on card holders.

In 2008, to be eligible for credit cards, one needed to deposit money at banks to get corresponding credit limit. Since 2010, deposit money has not been required. Banks provide credit cards after considering customers’ wages paid via banks. 

The market share held by the two big guys Agribank and VietinBank has dropped significantly. Dong A has been weeded out from the list of five most powerful banks in card services.

Nowadays, one just needs to have the monthly income of VND10 million to receive the invitations for opening cards from foreign banks such as CitiBank and ANZ, or Vietnamese such as BIDV, Maritime Bank and VP Bank. Banks may grant the credit limits 6-10 times higher than the customers’ monthly incomes.

Most clients, when opening cards, can receive preferences offered by the banks. They don’t have to pay annual fee for the first year, can enjoy preferential interest rates and sales promotion programs with discount rates of 10-20 percent. Some commercial banks even offer no-interest rate credit for up to 55 days.

War begins

According to the Vietnam Bank Card Association, in 2014, Vietcombank led the banks in terms of payment value, accounting for 22 percent of the market share, followed by VietinBank with 21 percent. Other small banks made up 26.1 percent of the transaction value and 32.55 percent of card amount.

If counting foreign banks, HSBC Vietnam has been leading the Vietnamese market in the last five years.

Small banks have seen the transaction value and number of cards increasing sharply by 55 percent compared to 2012, which shows the strong rise of small banks.

However, analysts commented that credit limits, preferential annual fees and fines alone would not be enough to lure customers. Customers also pay attention to post-sale services and security.

A card holder told Bizlive that he prefers using cards issued by foreign banks because the banks can act promptly in card security and customer care.


Bizlive