Testing the Factors Affecting the Development of Credit Cards in the Vietnam Banking Industry

Objective – In recent years, banks have been very interested in encouraging non-cash payment activities in Vietnam. Especially, payment by credit card has recently become a popular consumer behavior in the rural area. This paper aims to evaluate the development of credit cards in the Vietnam banking industry, particularly in Ho Chi Minh City and identify the significant factors affecting the credit card market. Methodology/ Technique – The authors conduct questionnaire survey with Likert-style rating scale to get the primary data. Exploratory Factor Analysis (EFA), Kaiser-Meyer-Olkin (KMO) and Bartlett' test are also employed to test correlation between independent variable (the development of credit cards in Vietnam) and five dependent variables (technology innovation, customer behavior, product creation, promotion policies and critical framework). Findings – The findings underline that the development of credit cards in the Vietnam banking industry is significantly influenced by customer behavior, promotion policies, critical framework, product creation, and technology innovation. Although there are some problems that need to be improved, Vietnam's credit card market has still been assessed as an outstanding potential market. Novelty – In this paper, recommendations are made to discover ways to improve these problems and continue developing the credit card market in Vietnam. Type of Paper: Empirical