Seeing the potential from a population of 96 million and the 2018 per capita GDP of 2,590 USD, Vietnamese banks are racing to develop retail markets.

At a Vietcombank transaction office 

Retail banking is closely associated with consumer lending. In 2008, total outstanding loans for consumer lending accounted for only 3.8 percent of all outstanding loans, but now it accounts for roughly 19.4 percent.

In recent years, Vietnamese banks have focused on the retail sector, a step in line with development trends and the State Bank of Vietnam’s policies. At some major banks, the segment has contributed more than 40 percent of total revenue.

The Vietnam International Bank (VIB), which reeled in pre-tax profit worth 810 billion VND (34.83 million USD) last year, saw its 2018 retail banking revenue grow 90 percent from 2017. The bank said it is capable of competing in the sector and will make it a business priority. 

Currently running 163 branches and transaction offices nationwide, VIB unveiled its plans to annually open between 10 and 20 new ones within the next five year and to develop its online application My VIB, which was reported to process transactions of 80 – 90 percent of its customers.

Meanwhile, leaders of the Vietnam's Housing Development Bank (HDBank) expected to make it a leading retail bank in the country via online banking services and digital technologies.

The Vietnam Prosperity Joint Stock Commercial Bank (VPBank) affirmed consumer lending will be its focus this year. It considers VPBank Finance Co., Ltd (FE Credit) and individual clients as driving forces behind the bank’s realisation of growth targets in the future. FE CREDIT is the first in the local market to implement a 100 percent digital lending process in granting loans for the purchase of digital devices and household appliances.

The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) has also joined the trend. The bank regards the retail banking segment as a vital part of its business strategy and is aiming at the potential of car finance, said general director Pham Quang Dung.