Debit Cards in Vietnam

Euromonitor International
December 2022
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LIST OF CONTENTS AND TABLES

KEY DATA FINDINGS.................................................................................................................. 1
2022 DEVELOPMENTS ............................................................................................................... 1
Fast issued and virtual debit cards find appeal by offering additional layer of convenience ..... 1
Shift to smart chip cards should benefit the payments industry ................................................ 1
Widespread use of promotional programmes designed to attract consumers to take out A new
debit card .................................................................................................................................. 2
PROSPECTS AND OPPORTUNITIES......................................................................................... 2
Virtual debit cards could support increased uptake in rural areas ............................................ 2
Stronger competition expected from global operators .............................................................. 3
Debit cards should benefit from shift towards contactless payments ........................................ 3
CATEGORY DATA ....................................................................................................................... 3
Table 1 Debit Cards: Number of Cards in Circulation 2017-2022 ............................. 3
Table 2 Debit Cards Transactions 2017-2022 ........................................................... 3
Table 3 Debit Cards in Circulation: % Growth 2017-2022 ......................................... 4
Table 4 Debit Cards Transactions: % Growth 2017-2022 ......................................... 4
Table 5 Debit Cards: Number of Cards by Issuer 2017-2021 ................................... 4
Table 6 Debit Cards: Number of Cards by Operator 2017-2021 ............................... 5
Table 7 Debit Cards Payment Transaction Value by Issuer 2017-2021 .................... 5
Table 8 Debit Cards Payment Transaction Value by Operator 2017-2021 ............... 6
Table 9 Forecast Debit Cards: Number of Cards in Circulation 2022-2027 .............. 6
Table 10 Forecast Debit Cards Transactions 2022-2027 ............................................ 6
Table 11 Forecast Debit Cards in Circulation: % Growth 2022-2027 .......................... 7
Table 12 Forecast Debit Cards Transactions: % Growth 2022-2027 .......................... 7

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DEBIT CARDS IN VIETNAM

KEY DATA FINDINGS
▪ Transaction values grow by 20% in current terms in 2022 to VND400 trillion
▪ Cards in circulation increase by 12% in 2022 to total 149 million
▪ Transaction value is set to grow at a current value CAGR of 21% (2022 constant value CAGR
of 16%) over the forecast period

2022 DEVELOPMENTS

Fast issued and virtual debit cards find appeal by offering additional
layer of convenience
Social distancing during the COVID-19 pandemic affected banks’ activities, leading banks to
focus on existing active debit card accounts, rather than focusing on new accounts as a key
performance indicator. Issued debit cards must be "active" and the cardholder needs to use it to
spend and pay for their personal or family spending needs, otherwise their card will be
deactivated. Under the wave of cashless and contactless payment trends, consumers are also
tending to simplify their daily routines, to change their cards’ usage habits and only keep debit
cards issued by one or two banks which are used the most often.
Fast issued debit cards is a new trend and is foreseen to become a key competitive factor
when consumers are choosing which bank to open an account with. In 2021, Orient Commercial
Joint Stock Bank (OCB) was a pioneer in this area with it claiming to be able to issue a new
debit card within 15 minutes at any of its branches. Similarly, virtual debit cards are also seeing
increasing demand with more banks now offering online authentication (eKYC) technologies to
verify customers. These virtual debit cards allow consumers to start spending online as soon as
their application is complete, with a physical card then being posted to the customer a few days
later.
With regard to commercial debit cards the number of cards and the number of transactions
has continued to grow at a steady pace in 2022, similar to the growth rates seen throughout the
pandemic. JSC Bank for Foreign Trade of Vietnam (Vietcombank) remained the dominant card
issuer for commercial debit cards in 2021, with this being a much smaller area of the market
compared to personal debit cards.

Shift to smart chip cards should benefit the payments industry

The roadmap for converting smart chip cards and accepting devices was due to be completed
March 2021, but this deadline was subsequently extended to the end of 2021 under the
government’s direction. However, affected by the pandemic, the conversion process was slow
and interrupted. According to the National Payment Corporation (NAPAS), there are 38 banks
issuing domestic chip cards and upgrading the infrastructure to accept chip cards at ATMs/POS
terminals. To make the process as seamless as possible for the consumer, card issuers and
operators are coordinating with the Vietnam Bankers Association and Vietnam National
Payment Joint Stock Company (NAPAS) to develop regulations on card payments regarding
responsibility for converting magnetic domestic cards to chip cards. These regulations officially
apply from 2022 onwards.
This shift to smart chip cards is seen as a critical factor to developing payment systems in
Vietnam, with these new cards designed to avoid theft of personal information which has been a

© Euromonitor International
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serious problem in recent years. Nonetheless, there is currently no regulation on stopping or

refusing card transactions for previously issued domestic magnetic cards.

Widespread use of promotional programmes designed to attract

consumers to take out A new debit card
Debit cards in Vietnam are operated by the National Payment Service Vietnam (NAPAS),
while in rural areas consumers mostly use debit cards to withdraw money, as opposed to
seeking other payment methods. In contrast, in urban areas and big cities where card payments
are more well-developed, consumers are now seeking debit cards with the ability to buy
overseas products. This has driven higher demand for global debit cards, despite the slightly
more expensive fees compared to domestic cards. Moreover, non-physical debit cards operated
by Visa, MasterCard and the like, have been increasingly popular recently, thanks to their
convenience and fast issuing processes by banks. For example, from 2021, customers can
easily open accounts for non-physical debit cards (Visa and Mastercard) on the Sacombank Pay
mobile application, in a simple process which is enabled after completing online authentication
(eKYC).
While the majority of debit cards in Vietnam are operated by NAPAS, global operators have
also recently started to offer various promotional activities to expand their share, with Vietnam
seen as a market that is full of potential. For instance, in 2022, Shinhan Bank cooperated with
Mastercard to launch its Shinhan Be-SAFE debit card which offers unlimited bonus points, while
it is also the first international debit card to offer online transaction insurance. This online
shopping insurance protects the consumer if the products they buy are broken by accident or
stolen within 180 days from the purchasing date. At the same time, cardholders also receive
insurance on any fraudulent cash withdrawals at ATMs, with compensation up to VND2,250,000
(restrictions apply).

PROSPECTS AND OPPORTUNITIES

Virtual debit cards could support increased uptake in rural areas

In rural areas, consumers still mostly use debit cards to withdraw cash and have low card
payment awareness and even a lack of retailers and restaurants that accept card payments.
Meanwhile in urban areas and big cities card payment networks are well-developed and
consumers are increasingly paying for a range of goods and services using their debit cards,
from food and entertainment to public transport and bills. Virtual debit cards have also been
increasing in popularity thanks to their convenience and the fast issuing process by banks, with
these products allowing consumers both in rural and urban areas to immediately start shopping
online. As consumers become more internet savvy and internet penetration grows this could
help increase uptake of debit cards not only in urban areas but also rural ones.
Vietnam has a young population which offers strong potential for the growth of debit cards
over the forecast period, with people likely to have more than one debit card in order to benefit
from different promotional programmes. This behaviour is also likely to be fuelled by the
government’s Banking Digital Transformation strategy. The ability to access a debit card both
physically and virtually and with speed and efficiency (while still maintaining a high level of
security) should appeal to young consumers who are keen to embrace online shopping and
digital payments.

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Stronger competition expected from global operators

Since there remains a limited participation of globally operated debit cards in Vietnam, the
market is seen to be full of potential. More affluent people living in Vietnam’s larger cities tend to
shop oversea and travel abroad frequently and as such there is potential for the growth of debit
cards from global operators, with some of the debit cards issued by local operators only
accepted in some regions. Moreover, global operators, together with local card issuers/banks,
have also started to provide various promotional activities to attract a wider audience of
consumers. This is especially true for commercial debit cards that have been designed for
people who frequently take business trips.
Commercial debit cards is expected to grow at a slower pace than personal credit cards both
in terms of transaction value and volume, although the success of these products will likely be
closely linked to economic growth within the country and the ability of small businesses to
recover from the pandemic. On the positive side, Vietnam is attracting more investment and a
wave of companies are shifting their production to the country. In the past, commercial debit
cards were not a focus because of the complicated paperwork processes, however, banks are
now concentrating on help enterprises to issue commercial debit cards for their employees.
Within this framework, commercial debit cards operated by global companies have been
favoured over local ones, as companies mostly prepare debit cards for their senior employees
who may travel overseas.

Debit cards should benefit from shift towards contactless payments

Card issuers/banks and NAPAS have coordinated to develop domestic contactless debit card
products that utilise “tap and go” features. This feature allows payments to be processed very
quickly making it a convenient payment option for public transport (Electric buses or Metro).
These speedy contactless payments should help support demand for debit cards, with
convenience being key for busy commuters. However, with there being a growing range of other
contactless payment solutions, including e-wallets, credit cards and pre-paid cards which
support this function it is not a unique selling point for debit cards.

CATEGORY DATA
Table 1 Debit Cards: Number of Cards in Circulation 2017-2022

'000 cards
2017 2018 2019 2020 2021 2022

- Debit Cards 84,703.8 93,655.9 111,184.9 120,796.2 133,104.6 148,475.6

Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 2 Debit Cards Transactions 2017-2022

2017 2018 2019 2020 2021 2022

Number of transactions 672.3 656.5 882.0 901.4 1,129.8 1,318.1

(mn)
Transaction value (VND 178,652.4 177,820.3 241,790.8 253,520.4 334,057.0 399,758.7
bn)
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

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Table 3 Debit Cards in Circulation: % Growth 2017-2022

% cards growth
2021/22 2017-22 CAGR 2017/22 Total

- Debit Cards 11.5 11.9 75.3

Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 4 Debit Cards Transactions: % Growth 2017-2022

% growth
2021/22 2017-22 CAGR 2017/22 Total

Number of transactions 16.7 14.4 96.1

Transaction value 19.7 17.5 123.8
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 5 Debit Cards: Number of Cards by Issuer 2017-2021

'000 cards
Company 2017 2018 2019 2020 2021

Vietnam JSC Bank for 15,356.1 12,584.4 19,678.4 24,576.1 22,461.4

Industry & Trade
(Vietinbank)
Vietnam Bank for 13,448.9 14,885.1 16,126.7 17,492.4 16,878.3
Agriculture & Rural
Development (Agribank)
JSC Bank for Foreign 16,320.9 17,758.1 19,283.6 19,101.0 16,135.2
Trade of Vietnam
(Vietcombank)
Bank for Investment & 12,290.7 14,622.2 15,724.5 16,715.1 15,326.0
Development of Vietnam
(BIDV)
Saigon Thuong Tin 2,503.9 5,230.1 6,154.9 7,057.6 6,333.3
Commercial JSB
East Asia Commercial Bank 5,607.1 5,726.2 5,844.1 5,878.5 5,598.9
Vietnam Technological & 3,031.7 3,512.9 4,743.2 4,706.2 4,463.4
Commercial Bank
Asia Commercial JSB 2,142.1 2,661.8 3,080.5 3,626.9 3,269.2
HSBC Bank (Vietnam) Ltd 1,850.2 1,968.8 2,387.3 2,456.6 2,525.9
Vietnam Prosperity 1,429.4 1,962.4 2,163.3 2,381.3 2,086.3
Commercial JCB
Vietnam Eximbank - 1,416.1 1,507.4 1,642.3 1,713.9 1,711.2
Vietnam Export Import
Commercial Joint Stock Bank
Vietnam Maritime 874.0 1,099.3 1,382.7 1,504.3 1,469.5
Commercial JSB
Ho Chi Minh City 1,038.9 1,200.6 927.0 943.7 822.2
Development JS Commercial
Bank
Vietnam International 1,244.0 1,088.2 1,239.7 1,522.8 624.3

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Commercial JSB
Shinhan Vietnam Bank Ltd 957.7 1,113.8 1,050.5 809.5 542.9
Petrolimex Group 226.1 222.4 260.0 287.2 40.2
Commercial JSB
Others 4,965.9 6,512.3 9,496.2 10,023.2 32,816.6
Total 84,703.8 93,655.9 111,184.9 120,796.2 133,104.6
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 6 Debit Cards: Number of Cards by Operator 2017-2021

'000 cards
Company 2017 2018 2019 2020 2021

National Payment Corp of 70,972.8 77,431.9 88,900.3 96,037.1 104,128.5

Vietnam
Visa Inc 8,929.8 9,877.0 12,405.8 13,484.8 15,220.6
Mastercard International 3,409.2 3,863.8 5,802.0 6,632.0 7,828.4
Inc
American Express Co 1,251.7 1,777.2 2,516.7 2,761.7 3,396.5
UnionPay International Co - 502.7 1,256.4 1,444.4 2,009.5
Ltd
JCB Co Ltd 140.3 203.0 301.7 436.2 517.1
Smartlink Card Services JSC - - - - -
Vietnam Bank Card JSC - - - - -
Vietnam National - - - - -
Financial Switching JSC
Total 84,703.8 93,655.9 111,184.9 120,796.2 133,104.6
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 7 Debit Cards Payment Transaction Value by Issuer 2017-2021

VND billion
Company 2017 2018 2019 2020 2021

JSC Bank for Foreign 48,642.9 51,218.2 61,100.9 61,234.2 66,648.6

Trade of Vietnam
(Vietcombank)
Vietnam Technological & 6,974.0 13,271.3 30,602.5 39,103.2 66,458.2
Commercial Bank
Vietnam JSC Bank for 41,926.6 23,705.2 33,518.6 23,934.4 36,726.3
Industry & Trade
(Vietinbank)
Vietnam Bank for 7,052.0 9,851.5 13,876.1 24,377.9 31,055.1
Agriculture & Rural
Development (Agribank)
Asia Commercial JSB 6,254.2 10,484.2 16,210.8 17,934.9 22,612.7
Bank for Investment & 20,761.1 26,104.5 23,594.8 21,691.4 21,993.0
Development of Vietnam
(BIDV)
Saigon Thuong Tin 6,338.6 9,611.0 14,313.3 15,873.6 17,113.9
Commercial JSB
Vietnam Prosperity 1,298.1 2,685.1 6,083.1 6,712.6 11,270.3
Commercial JCB
Shinhan Vietnam Bank Ltd 1,587.1 2,609.9 3,697.7 6,126.1 6,822.5
HSBC Bank (Vietnam) Ltd 1,745.8 2,870.8 2,963.6 3,489.7 4,098.7

© Euromonitor International
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Vietnam International 1,585.3 1,951.8 2,515.5 3,235.3 3,564.0

Commercial JSB
East Asia Commercial Bank 1,999.4 3,278.1 2,865.2 2,895.0 2,900.4
Vietnam Eximbank - 1,638.5 1,955.9 3,256.1 2,431.8 2,604.1
Vietnam Export Import
Commercial Joint Stock Bank
Petrolimex Group 629.7 966.9 1,106.9 901.6 2,308.7
Commercial JSB
Vietnam Maritime 17,795.9 1,255.0 1,704.7 2,224.1 2,127.6
Commercial JSB
Ho Chi Minh City 422.0 692.7 1,508.7 1,063.4 1,198.1
Development JS Commercial
Bank
Others 12,001.3 15,308.0 22,872.2 20,291.1 34,555.0
Total 178,652.4 177,820.3 241,790.8 253,520.4 334,057.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 8 Debit Cards Payment Transaction Value by Operator 2017-2021

VND billion
Company 2017 2018 2019 2020 2021

National Payment Corp of 146,053.5 142,580.7 190,354.3 198,349.7 265,438.5

Vietnam
Visa Inc 20,042.1 20,297.5 27,789.9 28,126.5 30,886.8
Mastercard International 9,464.0 9,940.8 14,692.3 16,173.8 21,670.6
Inc
American Express Co 2,798.2 3,648.8 5,370.1 6,416.0 9,916.9
UnionPay International Co - 968.9 2,926.4 3,639.4 5,182.2
Ltd
JCB Co Ltd 294.7 382.9 650.6 807.6 961.7
Smartlink Card Services JSC - - - - -
Vietnam Bank Card JSC - - - - -
Vietnam National - - - - -
Financial Switching JSC
Total 178,652.4 177,820.3 241,790.8 253,520.4 334,057.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 9 Forecast Debit Cards: Number of Cards in Circulation 2022-2027

'000 cards
2022 2023 2024 2025 2026 2027

- Debit Cards 148,475.6 166,431.3 186,790.4 211,042.1 239,970.2 273,492.8

Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 10 Forecast Debit Cards Transactions 2022-2027

2022 2023 2024 2025 2026 2027

Number of transactions 1,318.1 1,503.0 1,698.3 1,888.5 2,085.3 2,265.6

(mn)

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Transaction value (VND 399,758.7 474,276.3 557,670.6 649,538.3 749,473.5 843,178.5

bn)
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 11 Forecast Debit Cards in Circulation: % Growth 2022-2027

% cards growth
2022/2023 2022-27 CAGR 2022/27 Total

- Debit Cards 12.1 13.0 84.2

Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

Table 12 Forecast Debit Cards Transactions: % Growth 2022-2027

% growth
2022/23 2022-27 CAGR 2022/27 Total

Number of transactions 8.6 11.4 71.9

Transaction value 12.5 16.1 110.9
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources

© Euromonitor International