Though appearing only relatively recently, domestic credit cards have been gradually taking over market share, and experts have shared their thoughts and offered possible solutions to ensure that growth continues to head upwards in the future.

According to the State Bank of Vietnam (SBV), there were 12 domestic credit card issuers as of the end of June, nine of which were banks and three were financial companies. Circulation has reached over 543,000 cards, up 26 per cent since the end of 2021.

Figures from Napas show that growth in card transactions stands at 45 per cent for the past five years and transaction value 40 per cent. Growth in online transactions was 87 per cent and 107 per cent in value, showing that people are indeed using their cards.

Mr. Nguyen Dang Hung, Deputy General Director of Napas, said domestic credit cards are aimed at most people and are a key product in the financial strategy pursued by the government and the SBV. Through domestic credit cards, banks also hope to create a capital channel for personal consumption.

Meanwhile, SBV Deputy Governor Pham Tien Dung believes domestic credit cards hold many advantages and are the equal of other cards. “There is no reason to hold back development,” he said.

Mr. Pham Truong Giang, Deputy Head of the Payment Development Department at the SBV, suggested that although they have a found foothold in the market, domestic credit cards need to work on expanding their market share given their late arrival.

He offered three main solutions. Firstly, card issuers must have a program to promote and introduce credit cards to a large number of people. Second, there must be additional payment points if it is hoped that customers use their cards on daily needs. And third, most domestic credit card issuers must also issue international credit cards, to access economic benefits.