The Vietnamese card payments market is forecast to register a compound annual growth rate (CAGR) of 14% between 2024 and 2028 to reach VND2,389.5 trn ($100.5bn) in 2028, supported by a constant consumer shift towards electronic payments, according to GlobalData, publishers of EPI.
GlobalData’s Payment Cards Analytics, reveals that card payment value in Vietnam registered a growth of 47% in 2022, driven by a rise in consumer spending. The value grew further to register a growth of 18.8% to reach VND1,212.6trn ($51bn) in 2023.
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Ravi Sharma, Lead Banking and Payments Analyst at GlobalData, comments: “Cash continues to dominate the payment market in Vietnam, but the tide is slowly turning as the government and regulatory authorities introduce initiatives to boost non-cash payments and enhance access to banking services. The introduction of various initiatives to promote card adoption and develop modern payment infrastructure, coupled with the introduction of banking services in remote locations, are supporting the transition to electronic payments in the country.”
Debit cards continue to dominate the card payments market in Vietnam, accounting for 66.3% of total card payments value in 2023. The availability of basic bank accounts and a focus on financial inclusion have contributed to the strong penetration of debit cards in the country. Banks are also encouraging the usage of debit cards for payments by offering various incentives and the expansion of the country’s POS network.
Credit and charge cards, although accounting for 33.7% of total payment card payments, have witnessed significant growth in Vietnam
Banks have launched campaigns, co-branded cards, and benefits such as cashback, reward points, and discounts to boost credit card adoption and usage.
Sharma adds: “With the increasing awareness about the benefits of credit cards, their adoption is expected to grow further in the coming years.”
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By GlobalDataThe Vietnamese government and the central bank took steps to promote digital payments in the country. In October 2021, the government approved the Project for the Development of Non-Cash Payments for 2021–25. The project is aimed at achieving various goals by 2025, including boosting the value of non-cash payments, expanding the number of establishments that accept non-cash payments, and raising the proportion of individuals aged 15 and above who hold transaction accounts at banks to 80%.
Sharma concludes: “Vietnam’s payment market is slowly transitioning from a cash-dominated society to one that embraces electronic payments. With the increasing number of digital-only banks, the emergence of payment card technologies, and the development of payment infrastructure, the card payment market in Vietnam is set to expand significantly in the coming years. The market is forecast to grow by 16.6% to reach VND1,414.2trn ($59.5bn) in 2024.”
