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Domestic credit card market still has room for growth

The Saigon Times

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HCMC – There is significant room for the development of the domestic credit card market, as the number of holders of those cards remains modest, according to a representative from the State Bank of Vietnam (SBV).

SBV statistics show that out of 39 million active credit cards, domestic cards account for just over 811,000, or 8.7% of the country’s total.

Speaking at the “Promoting the Development of the Electronic Payment Market in Vietnam” conference held on September 15 by the State Bank of Vietnam (SBV) in coordination with Lao Dong newspaper, Pham Tuan Anh, head of the Payment Department under the SBV, said that from January to July, there were 15 credit card issuers across the country.

During this period, the number of active domestic credit cards exceeded 811,400, a 42.5% increase compared to the previous year.

Tuan emphasized the advantages of domestic credit cards for consumers, including reasonable card processing fees and costs. He added that this would facilitate consumers’ access to banking services, promote cashless payments, and discourage loan sharking.

According to Tuan, there is ample room for promoting the domestic credit card market in Vietnam, given the relatively low number of these cards currently in circulation.

In practice, the development of domestic credit cards has primarily focused on urban areas. Meanwhile, rural areas, where 90% of transactions are still conducted in cash, present significant untapped potential.

The SBV representative suggested the need for incentive policies to encourage domestic consumption through the use of these cards.

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