Foreign-invested banks in Vietnam, who have great experiences in issuing cards, are deliberately preparing for timely launching various kinds of card products, prompting a tough competition in the local card market.
Recently, the VID Public Bank, a joint venture between the Bank for Investment and Development of Vietnam (BIDV) and the Malaysian Public Berhard, has been licensed to issue and pay domestic cards. Accordingly, VID Public Bank will be allowed to install ATMs at all its branches nationwide and scheduled to network it with the ATM system of the Vietnam Bank for Foreign Trade of Vietnam (Vietcombank) in the near future.
“VID Public Bank has completed all necessary procedures to issue different kinds of credit cards, payment cards and ATM cards in Vietnam,” said Wilson Cheah Hui Pin while declining to reveal the time schedule and the number cards to be issued.
“Before launching a card service, the bank has to build a strict and modern management system in order to restrict risks. Surely, when Vietnam officially opens its market, VID Public Bank’s card services will be introduced to Vietnamese consumers,” he confirmed.
The Vietnam card market has great potential, said Wilson Cheah Hui Pin, adding that compared to a population of 83 million people, the number of three million cards issued in Vietnam to date remains too modest.
“Thus, VID Public Bank will promote card services in Vietnam in the forthcoming time,” asserted he.
Ngo Quoc Hoa, sales manager of the personal financial service division under the Hong Kong and Shanghai Banking Corporation (HSBC) in Vietnam, said that the bank is cooperating with the Technological and Commercial Bank of Vietnam (Techcombank) to prepare for introducing card products in Vietnam.
Issuing and developing cards, Hoa said, is one of HSBC’s important strategies. “Vietnam’s opening the financial market is a good opportunity for foreign banks to enter the card service segment,” commented Hoa.
Compared to other countries in the world, the retail banking services of Vietnam remain weak due to little experience.
According to Trinh Thuong Thuc, chief of Vietcombank-Ho Chi Minh City arm’s card division, domestic banks find hard to access multinational companies in the world who often prefer to work with prestigious large-scaled banks. “Additionally, foreign banks have much experience in the card segment and pay much attention to the card accepting point network and the management software,” said Thuc.
In order to be able to compete with foreign revivals on a level playing field, domestic banks need to cooperate together to reduce investment cost because no single bank can afford to build a wide network to serve clients, stressed Nguyen Thi Thu Ha, chairman of the Vietnam Bank Card Association.
At present, there are four joint-venture banks, nearly 30 branches and 49 representative offices of foreign banks operating next to 39 domestic banks in Vietnam.
Investment
Vietnamese
