Retail banking market continues to grow

The retail banking market in Vietnam has been extremely competitive among more than 100 credit institutions.

According to Head of Retail Banking at Vietnam International Bank (VIB) Rahn Wood, 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.