VietinBank leads domestic card market with 15pct of market share

02-Dec-2021 Intellasia | NDH | 5:02 AM Print This Post

According to a report by the Vietnam Bank Card Association, the card market in the period of 2018 2021 grew on four aspects of card issuance, card use, card payment and network development. The Vietnam’s card market recorded competition between the group of domestic cards (payment transactions, domestic payments) and the group of international cards with a wider range of transactions, in the domestic and foreign countries.

The total number of issued cards in circulation as of June 30th reached 110 million cards of all kinds, up by 28 percent compared to the end of 2018. In particular, domestic cards reached 90.4 million cards, accounting for 82%. Four banks are leading in the number of cards in circulation, including Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank) with 16.9 million cards, accounting for 15%; Commercial Joint Stock Bank for Investment and Development of Vietnam (BIDV) with 15.3 million cards, accounting for 14%; Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank) with 15.1 million cards, accounting for 14%; and Military Commercial Joint Stock Bank (MB) with 7.6 million cards, accounting for seven percent.

The number of domestic cards, after nearly four years, has increased by 18 percent to 85.7 million cards. The Top five banks with the largest market share include VietinBank (18%), Commercial Joint Stock Bank for Agriculture and Rural Development of Vietnam (Agribank, 17%), BIDV (16%), Vietcombank (15%) and Dong A Commercial Joint Stock Bank (DongABank, seven percent).

Regarding domestic prepaid cards, as of June 30th, there were 11 out of 41 banks issuing this type of card with a total 4.3 million cards in circulation, up by 69 percent compared to 2018. In terms of domestic credit cards, there were nine out of 41 banks issuing a total of 238.011 cards, up by 19 percent compared to 2019. The member banks with large market shares are Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) with 34%, VietinBank with 27%, Asia Commercial Joint Stock Bank (ACB) with 13%, Nam A Commercial Joint Stock Bank (NamABank) with 12 percent and JACCS International Vietnam Finance Company Limited (JACCS) with 10%.

The growth of domestic cards partly reflects the payment trend of users, along with the efforts to build the market of member card issuers.

The number of domestic debt cards, one of the main discussion topics in 2018 of the Vietnam Bank Card Association, after four years has risen by 18 percent to 85.7 million cards in circulation. The top 5 banks that account for the largest market share include VietinBank (18%), Agribank (17%), Vietcombank (15%) and DongABank (seven percent).

The card sales of member card issuers increase by an average of 24 percent per annum. The sales of domestic debit cards rise by an average of eight percent per annum. As of June 30th, the sales of domestic debt cards reached 1,200 trillion dong, up by four percent compared to the same period of 2018. Vietcombank continues to lead the market with 23 percent of market share, followed by Agribank with 19%, BIDV with 13%, VietinBank with 12 percent and DongABank with six percent.

Due to the impact of the Covid-19 epidemic, people’s spending and shopping demand has declined, leading to a fall of 11 percent in the sales of domestic cards in 2011 compared to 2018. The positive point is that while the proportion of sales via cards increased from 15 percent in 2018 to 22 percent in 2021, the proportion of cash withdrawals via cards gradually decreased from 85 percent in 2018 to 82 percent in 2020 and 78 percent as of June 30th 2021. The top five banks leading in card scales include Vietcombank (18%), Agribank (14%), VietinBank (13%), BIDV (four percent) and Sacombank (10%).

Regarding the card payment activities, for both card sales and cash withdrawals, an average growth of five percent per annum was recorded. Despite being affected by the Covid-19 epidemic, in the first six months of 2021, the sales of cards of member issuers still reached 1,781,251 billion dong, up by 10 percent over the same period of 2020. In particular, the card sales accounted for 34 percent and cash withdrawals accounted for 64%. Vietcombank holds the largest market share with 21%, followed by Agribank with 17%, VietinBank with 13%, BIDV with 11.4 percent and Sacombank with 11%.

In terms of network development, in the period from 2018 until now, the number of ATMs of the members of Vietnam Bank Card Association only increased by five percent from 18,434 units to 19,398 units as of June 30th 2021. In the opposite direction, as of June 30th, the network of card-accepting units had a total 188,395 POS machines. Vietcombank is the leader with 45,825 POS machines in circulation, accounting for 24%, followed by BIDV (20%, VietinBank (17%), Agribank (14%), Sacombank (seven percent). The number of mobile POS (mPOS) increased by fourfold in the period from 2018 until now from 27,565 units to 117.298 units as of June 30th 2021. The number of units accepting QR code cards also doubled from 57,969 to 115,739 units. The number of units accepting Ecom cards (direct payments on online websites) tended to decline from 2,525 card-accepting units in 2018 to 1,760 units as of June 30th 2021, equivalent to a reduction of 30%.

 

Category: Finance, Vietnam

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