Retail banking market continues to grow in Vietnam

Retail banking market continues to grow in Vietnam

The retail banking market in Vietnam has been extremely competitive among more than 100 credit institutions. Therefore, banks must provide customers with the highest value and service from the heart will help to achieve customers’ goals and aspirations.

Head of Retail Banking at Vietnam International Bank (VIB) Rahn Wood spoke with The Saigon Times Daily about retail banking market trend in the country.

Development of the local retail banks in Vietnam is an ongoing trend. As a developing country, Vietnam has low average income, moderate adoption of banking services, whilst its people’s financial needs and demands for payment services have increased extremely fast. Therefore, it is sure that the retail banks of Vietnam will develop strongly over the next decade.

The retail banking market in Vietnam has been extremely competitive among more than 100 credit institutions, especially 48 commercial banks and 53 branches of foreign banks, 28 non-bank credit institutions, two micro-finance institutions and a system of people’s credit funds including one cooperative bank and 1,414 grassroots funds.

Consumer loans (home, auto consumers) and household business loans (personal business) will continue to be boosted. Banks will also focus on promoting the service of payments via card by linking with merchant systems such as game companies, online purchases, electricity/telecom bill payment and supermarkets.

Of course in recent times there have been some economic challenges and we are hopeful that there will be further progress to improve the health of some of the banks that have faced the most difficulties and that consumer confidence in the banking system will return to its usual levels.

In 2015, the retail market is also considered an attractive market for foreign banks who may seek opportunities to participate effectively in Vietnam. In short, the retail banking in Vietnam is not only a challenge, but also an opportunity for those who are willing to invest.-VNA

Retail banking market continues to grow in Vietnam Related image(s)