Vietnam’s Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape

Vietnam’s economic growth has enhanced job creation and household income, and propelled a greater number of previously unbanked people into the realm of financial services. Vietnam’s GDP per capita subsequently rose during the review period from US$1,097.1 in 2009 to US$1,728.4 in 2013. Even though Vietnam remains a highly untapped financial services market, economic growth is enhancing the number of people gaining access to bank accounts. Consequently, as more people and businesses are brought into the financial mainstream and are becoming aware of the benefits of electronic transactions, the use of cash as a payment method is decreasing. In terms of the overall card payments channel, the share of cash transactions decreased from 3.4% in 2009 to 2.7% in 2013, while the share of card transactions doubled to increase from 1.5% in 2009 to 3.1% in 2013.

The Vietnamese card payments channel grew in value and volume terms during the review period. In terms of the number of cards in circulation, the channel grew from 21.7 million in 2009 to 67.8 million in 2013, at a compound annual growth rate (CAGR) of 32.95% and is anticipated to further post a forecast-period CAGR of 9.89%. In terms of transaction value, the card payments channel grew from VND364.8 trillion (US$21.4 billion) in 2009 to VND1.32 quadrillion (US$62.8 billion) in 2013, at a review-period CAGR of 37.91%, it is anticipated to post a forecast-period CAGR of 12.30%, to reach VND2.58 quadrillion (US$106.5 billion) in 2018.

In terms of the number of cards in circulation, the credit and prepaid card categories collectively accounted for a channel share of 7.3% in 2013, reflecting lower penetration rates than the debit cards category. However, a growth in the number of middle-class families, the greater need for access to credit, changes in consumer spending habits and the comfortable approval of credit cards fueled demand. Banks are issuing customized credit cards targeted at diverse customer segments such as the young population, high-income customers, females and travelers. Co-branded credit cards are slowly gaining popularity in Vietnam. In 2013, most banks issued co-branded credit cards in association with retailers, airline companies, educational institutions and football clubs. Vietcombank, for example, offers the Vietnam Airlines American Express Platinum Card in association with Vietnam Airlines.

Scope

• GlobalData's 'Vietnam's Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape' report provides a comprehensive analysis of Vietnam's cards and payments industry.

• It provides current values for Vietnam's cards and payments industry for 2013, and forecast figures for 2018.

• It details the different economic, infrastructural and business drivers affecting Vietnam's cards and payments industry.

• It outlines the current regulatory framework in the industry.

• It details the marketing strategies used by various banks and other institutions.

• It profiles the major banks in Vietnam's cards and payments industry.

Key Highlights

• Vietnam’s economy remained consistently strong during the financial crisis and recorded robust gross domestic product (GDP) growth during the review period. Over the forecast period, it is anticipated to post a GDP growth rate of more than 5.4%, supported by the government’s monetary policy in 2014 which aimed to ensure capital sources for economic development and regulate inflationary pressure. Vietnam’s entry into the World Trade Organization (WTO) in 2007 underpinned its growth potential, aided by inflows of foreign direct investment (FDI), which in 2013 reached US$21.6 billion, an increase of 54.5% year-on-year.

• Vietnam’s economic growth has enhanced job creation and household income, and propelled a greater number of previously unbanked people into the realm of financial services. Vietnam’s GDP per capita subsequently rose during the review period. Although Vietnam remains a highly untapped financial services market, economic growth is enhancing the number of people gaining access to bank accounts. Consequently, as more people and businesses are brought into the financial mainstream and are becoming aware of the benefits of electronic transactions, the use of cash as a payment method is decreasing. In terms of the overall card payments channel, the share of cash transactions decreased from 3.4% in 2009 to 2.7% in 2013, while the share of card transactions doubled to increase from 1.5% in 2009 to 3.1% in 2013.

• The Vietnamese card payments channel grew in value and volume terms during the review period. In terms of the number of cards in circulation, the channel grew from 21.7 million in 2009 to 67.8 million in 2013, at a CAGR of 32.95% and is anticipated to further post a forecast-period CAGR of 9.89%.

Reasons to buy

• Make strategic business decisions using top-level historic and forecast market data related to Vietnam's cards and payments industry and each market within it.

• Understand the key market trends and growth opportunities within Vietnam's cards and payments industry.

• Assess the competitive dynamics in Vietnam's cards and payments industry.

• Gain insights in to the marketing strategies used for selling various card types in Vietnam.

• Gain insights into key regulations governing Vietnam's cards and payments industry.

Companies mentioned

Agribank

Vietcombank

Asia Commercial Joint-Stock Bank

Sacombank

VietinBank

MasterCard

Visa

American Express

Vietnam National Financial Switching JSC

Smartlink Card Services JSC

VietnamBank Card

Table of Contents

1 Executive Summary

2 Analysis of Market Environment, Key Trends and Drivers

2.1 Payment Infrastructure and Emerging Technology

2.1.1 Rising internet penetration

2.1.2 ATMs

2.1.3 POS terminals

2.1.4 Cards with enhanced security measures

2.2 Business Drivers

2.2.1 Growth in the retail sector

2.2.2 Growth in e-commerce

2.3 Economic Drivers

2.3.1 GDP growth

2.3.2 GDP per capita

2.3.3 Inflation

3 Cards and Payments Industry Share Analysis

3.1 Industry Overview

3.1.1 Credit transfer

3.1.2 Card transactions

3.1.3 Cash transactions

3.1.4 Direct debit

3.1.5 Check payments

4 Regulatory Framework and Card Fraud Statistics

4.1 Regulatory Framework

4.1.1 Overview

4.1.2 Anti money laundering (AML) and counter terrorist financing (CTF)

4.1.3 FDI regulations

4.2 Card Fraud Statistics

4.2.1 Counterfeit card fraud

4.2.2 Card-not-present fraud

4.2.3 Card ID theft fraud

4.2.4 Lost or stolen card fraud

5 Emerging Consumer Attitudes and Trends

5.1 Industry Segmentation and Targeting

5.1.1 Retail segment

5.1.2 Corporate segment

5.2 Travel and Tourism Spending

5.2.1 Outbound tourist trips

5.2.2 Outbound tourist spending

5.3 Retail Card Spending

5.3.1 Analysis by product categories

5.3.2 Analysis by retail channel

6 Analysis of Card Payments and Growth Prospects

6.1 Channel Share Analysis by Card Category

6.2 Size and Forecast of the Card Payments Channel

6.2.1 Analysis by number of cards in circulation

6.2.2 Analysis by transaction value

7 Analysis of Credit Card Payments and Growth Prospects

7.1 Overall Category Size and Forecast

7.1.1 Analysis by number of cards in circulation

7.1.2 Analysis by transaction value

7.1.3 Analysis by transaction volume

7.2 Transaction Share Analysis by Channel

7.2.1 Analysis by transaction value

7.2.2 Analysis by transaction volume

7.3 Personal Credit Cards Segment Size and Forecast

7.3.1 Analysis by number of cards in circulation

7.3.2 Analysis by transaction value

7.3.3 Analysis by transaction volume

7.4 Commercial Credit Cards Segment Size and Forecast

7.4.1 Analysis by number of cards in circulation

7.4.2 Analysis by transaction value

7.4.3 Analysis by transaction volume

7.5 Competitive Landscape

7.5.1 Scheme share analysis

7.5.2 Issuer share analysis

8 Analysis of Debit Card Payments and Growth Prospects

8.1 Overall Category Size and Forecast

8.1.1 Analysis by number of cards in circulation

8.1.2 Analysis by transaction value

8.1.3 Analysis by transaction volume

8.2 Transaction Share Analysis by Channel

8.2.1 Analysis by transaction value

8.2.2 Analysis by transaction volume

8.3 Competitive Landscape

8.3.1 Scheme share analysis

8.3.2 Issuer share analysis

9 Analysis of Prepaid Card Payments and Growth Prospects

9.1 Overall Category Size and Forecast

9.1.1 Analysis by number of cards in circulation

9.1.2 Analysis by transaction value

9.2 Open-Loop Prepaid Cards Segment Size and Forecast

9.2.1 Analysis by number of cards in circulation

9.2.2 Analysis by transaction value

9.3 Closed-Loop Prepaid Cards Segment Size and Forecast

9.3.1 Analysis by number of cards in circulation

9.3.2 Analysis by transaction value

10 Merchant Acquiring

11 Company Profiles of Card Issuers

11.1 Agribank

11.1.1 Key financials

11.1.2 Card portfolio

11.1.3 Strategies

11.2 Vietcombank

11.2.1 Key financials

11.2.2 Card portfolio

11.2.3 Strategies

11.3 Asia Commercial Joint-Stock Bank (ACB)

11.3.1 Key financials

11.3.2 Card portfolio

11.3.3 Strategies

11.4 Sacombank

11.4.1 Key financials

11.4.2 Card portfolio

11.4.3 Strategies

11.5 VietinBank

11.5.1 Key financials

11.5.2 Card portfolio

11.5.3 Strategies

12 Appendix

12.1 Methodology

12.2 Contact GlobalData

12.3 About GlobalData

12.4 GlobalData’s Services

12.5 Definitions

12.6 Disclaimer

List of Tables

Table 1: Vietnamese Payment Channels (VND Trillion), 2009–2013

Table 2: Market Entry Strategies of Foreign Banks

Table 3: Vietnamese Card Fraud (VND Billion), 2009–2013

Table 4: Vietnamese Cards for High-Income Customers

Table 5: Vietnamese Shopping Cards by Bank

Table 6: Vietnamese Travel Cards by Bank

Table 7: Vietnamese Cards Offered to Students and Women by Bank

Table 8: Vietnamese Cards Offered for Corporate Customers by Bank

Table 9: Vietnamese Consumer Card Spending by Product Category (VND Million), 2008 and 2012

Table 10: Vietnamese Consumer Card Spending by Retail Channel (VND Million), 2008 and 2012

Table 11: Vietnamese Card Payments Channel by Card Category (Thousand), 2009–2018

Table 12: Vietnamese Card Payments Channel Size by Volume of Cards (Million), 2009–2018

Table 13: Vietnamese Card Payments Channel Size by Transaction Value (VND Trillion), 2009–2018

Table 14: Vietnamese Card Payments Channel Size by Transaction Value (US$ Billion), 2009–2018

Table 15: Vietnamese Credit Cards Category Size by Volume of Cards (Thousand), 2009–2018

Table 16: Vietnamese Credit Cards Category Size by Transaction Value (VND Trillion), 2009–2018

Table 17: Vietnamese Credit Cards Category Size by Transaction Value (US$ Million), 2009–2018

Table 18: Vietnamese Credit Cards Category Size by Transaction Volume (Million), 2009–2018

Table 19: Vietnamese Personal Credit Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Table 20: Vietnamese Personal Credit Cards Segment Size by Transaction Value (VND Trillion), 2009–2018

Table 21: Vietnamese Personal Credit Cards Segment Size by Transaction Value (US$ Million), 2009–2018

Table 22: Vietnamese Personal Credit Cards Segment Size by Transaction Volume (Million), 2009–2018

Table 23: Vietnamese Commercial Credit Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Table 24: Vietnamese Commercial Credit Cards Segment Size by Transaction Value (VND Billion), 2009–2018

Table 25: Vietnamese Commercial Credit Cards Segment Size by Transaction Value (US$ Million), 2009–2018

Table 26: Vietnamese Commercial Credit Cards Segment Size by Transaction Volume (Thousand), 2009–2018

Table 27: Vietnamese Debit Cards Category Size by Volume of Cards (Million), 2009–2018

Table 28: Vietnamese Debit Cards Category Size by Transaction Value (VND Trillion), 2009–2018

Table 29: Vietnamese Debit Cards Category Size by Transaction Value (US$ Billion), 2009–2018

Table 30: Vietnamese Debit Cards Category Size by Transaction Volume (Million), 2009–2018

Table 31: Vietnamese Prepaid Cards Category Size by Volume of Cards (Thousand), 2009–2018

Table 32: Vietnamese Prepaid Cards Category Size by Transaction Value (VND Billion), 2009–2018

Table 33: Vietnamese Prepaid Cards Category Size by Transaction Value (US$ Million), 2009–2018

Table 34: Vietnamese Open-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Table 35: Vietnamese Open-Loop Prepaid Cards Segment Size by Transaction Value (VND Billion), 2009–2018

Table 36: Vietnamese Open-Loop Prepaid Cards Segment Size by Transaction Value (US$ Thousand), 2009–2018

Table 37: Vietnamese Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Table 38: Vietnamese Closed-Loop Prepaid Cards Segment Size by Transaction Value (VND Billion), 2009–2018

Table 39: Vietnamese Closed-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2009–2018

Table 40: Agribank – Key Financial Indicators (VND Trillion), Year Ending December, 2010–2011

Table 41: Agribank – Card Portfolio and Key Features

Table 42: Vietcombank – Key Financial Indicators (VND Trillion), Year Ending December, 2011–2012

Table 43: Vietcombank – Card Portfolio and Key Features

Table 44: ACB – Key Financial Indicators (VND Trillion), Year Ending December, 2012–2013

Table 45: ACB – Card Portfolio and Key Features

Table 46: Sacombank – Key Financial Indicators (VND Trillion), Year Ending December, 2012–2013

Table 47: Sacombank – Card Portfolio and Key Features

Table 48: VietinBank – Key Financial Indicators (VND Trillion), Year Ending December, 2012–2013

Table 49: VietinBank – Card Portfolio and Key Features

Table 50: Key Definitions

List of Figures

Figure 1: Benchmarking the Vietnamese Card Payments Channel Against Other Asia-Pacific Markets

Figure 2: Vietnamese Growth of Various Card Categories (%), 2009–2018

Figure 3: Vietnamese Internet Penetration, 2009–2018

Figure 4: Vietnamese ATM Volume and Penetration, 2009–2018

Figure 5: Vietnamese POS Volume and Penetration, 2009–2018

Figure 6: Vietnamese Value of Retail Sales (VND Trillion), 2009–2018

Figure 7: Vietnamese E-commerce Value (VND Trillion), 2009–2013

Figure 8: Vietnamese Real GDP Growth (%), 2009–2018

Figure 9: Vietnamese Nominal GDP per Capita (US$), 2009–2018

Figure 10: Vietnamese Consumer Price Inflation Rate (%), 2009–2018

Figure 11: Vietnamese Shares of Different Payment Channels (%), 2009 and 2013

Figure 12: Vietnamese Card Fraud (%), 2009 and 2013

Figure 13: Vietnamese Counterfeit Card Fraud Value (VND Billion), 2009–2013

Figure 14: Vietnamese Card-Not-Present Fraud Value (VND Billion), 2009–2013

Figure 15: Vietnamese Card ID Theft Value (VND Billion), 2009–2013

Figure 16: Vietnamese Lost or Stolen Card Fraud Value (VND Billion), 2009–2013

Figure 17: Vietnamese Cards and Payments Industry Segmentation by Card Type

Figure 18: Vietnamese Volume of Outbound Tourist Trips (Thousand), 2009–2018

Figure 19: Vietnamese Outbound Tourist Spending (VND Trillion), 2009–2018

Figure 20: Vietnamese Consumer Card Spending by Product Category (%), 2012

Figure 21: Vietnamese Consumer Card Spending by Retail Channel (%), 2012

Figure 22: Vietnamese Card Payments Channel by Card Category (%), 2009–2018

Figure 23: Vietnamese Card Payments Channel Size by Volume of Cards (Million), 2009–2018

Figure 24: Vietnamese Card Payments Channel Size by Transaction Value (VND Trillion), 2009–2018

Figure 25: Vietnamese Credit Cards Category Volume and Penetration, 2009–2018

Figure 26: Vietnamese Credit Cards Category Size by Volume of Cards (Thousand), 2009–2018

Figure 27: Vietnamese Credit Cards Category Size by Transaction Value (VND Trillion), 2009–2018

Figure 28: Vietnamese Credit Cards Category Size by Transaction Volume (Million), 2009–2018

Figure 29: Vietnamese Credit Cards Transaction Value Share Analysis by Channel (VND Trillion), 2009–2018

Figure 30: Vietnamese Credit Cards Transaction Volume Share Analysis by Channel (Million), 2009–2018

Figure 31: Vietnamese Personal Credit Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Figure 32: Vietnamese Personal Credit Cards Segment Size by Transaction Value (VND Trillion), 2009–2018

Figure 33: Vietnamese Personal Credit Cards Segment Size by Transaction Volume (Million), 2009–2018

Figure 34: Vietnamese Commercial Credit Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Figure 35: Vietnamese Commercial Credit Cards Segment Size by Transaction Value (VND Billion), 2009–2018

Figure 36: Vietnamese Commercial Credit Cards Segment Size by Transaction Volume (Thousand), 2009–2018

Figure 37: Vietnamese Credit Cards Category Share by Scheme (%), 2012

Figure 38: Vietnamese Credit Cards Category Share by Issuer (%), 2012

Figure 39: Vietnamese Debit Cards Category Volume and Penetration, 2009–2018

Figure 40: Vietnamese Debit Cards Category Size by Volume of Cards (Million), 2009–2018

Figure 41: Vietnamese Debit Cards Category Size by Transaction Value (VND Trillion), 2009–2018

Figure 42: Vietnamese Debit Cards Category Size by Transaction Volume (Million), 2009–2018

Figure 43: Vietnamese Debit Cards Transaction Value Share Analysis by Channel (VND Trillion), 2009–2018

Figure 44: Vietnamese Debit Cards Transaction Volume Share Analysis by Channel (Million), 2009–2018

Figure 45: Vietnamese Debit Cards Category Share by Scheme (%), 2012

Figure 46: Vietnamese Debit Cards Category Share by Issuer (%), 2012

Figure 47: Vietnamese Prepaid Cards Category Volume and Penetration, 2009–2018

Figure 48: Vietnamese Prepaid Cards Category Size by Volume of Cards (Thousand), 2009–2018

Figure 49: Vietnamese Prepaid Cards Category Size by Transaction Value (VND Billion), 2009–2018

Figure 50: Vietnamese Open-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Figure 51: Vietnamese Open-Loop Prepaid Cards Segment Size by Transaction Value (VND Billion), 2009–2018

Figure 52: Vietnamese Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Figure 53: Vietnamese Closed-Loop Prepaid Cards Segment Size by Transaction Value (VND Billion), 2009–2018

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