Korean credit card providers, Shinhan Vietnam Finance and Lotte Finance Vietnam, are struggling to penetrate the Vietnam market. The firms recorded net losses of US$3.7 million and US$2.56 million, respectively, in the first quarter of this year, on the back of a broader economic downturn in Vietnam.
Indeed, demand for credit has plummeted over the last year or two as thrifty Vietnamese have tightened their belts. By the end of March credit growth was at just 1.34 percent. That said, credit cards have not proven to be very popular in Vietnam in general, with consumers tending to spend only what they have. In fact, just 6 percent of Vietnamese had a credit card according to a 2021 report from the World Bank.