Vietnam set to be 10th largest consumer market by 2030: HSBC

Vietnam is poised to become the world's 10th largest consumer market by 2030, bigger than Germany and Britain, according to HSBC Vietnam.

The upper-middle class (individuals earning between $50-110 per day) in Vietnam is expected to grow by an average of 17% per annum until the end of this decade, the bank said while launching its HSBC TravelOne credit card in partnership with MasterCard last weekend.

Home to a population of 100 million people now, Vietnam is among Asia's top five countries expected to see the fastest growth in their consumer markets, with the population earning more than $20 per day in constant purchasing power parity (PPP) terms in the current 2021-2030 decade, the bank added.

Taylan Turan, Group head of retail banking and strategy, HSBC Wealth and Personal Banking, said: “Our ambition is to deliver products and services which meet the needs of our growing customer base in Southeast Asia.

“As part of this, we are doubling down on developing new digital capabilities that match the variety of their borrowing needs, as well as benefits they can use and enjoy instantly. TravelOne is a key part of our plans to grow our unique cross-border international franchise, through offering a multi-market travel card in partnership with MasterCard,” he said.

Turan noted that the new product with MasterCard as a partner enables HSBC customers to redeem reward points instantly on its mobile banking app, converting their points with an extensive selection of the world’s leading airlines and hotels.

The new card product offers various travel and lifestyle benefits to meet the pent-up travel demand as consumers pick up travel pace quickly after the pandemic.

According to Booking.com’s Travel Confidence Index, Vietnam is the second most enthusiastic country in the world to resume travel after the pandemic, with 85% of Vietnamese travelers planning to travel in the next 12 months. Notably, 62% of survey respondents planned to take one or two trips this year, while 45% are interested in visiting popular destinations within 3-8 hour flight from Vietnam. Additionally, 45% of Vietnamese travelers intend to travel because their previous plans, made before the pandemic, were canceled due to Covid-19.

Vietnam is one of the first-batch markets where HSBC launches this card. The bank aims to achieve strong growth in unsecured lending business revenue in Southeast Asia.

“Tourism in Vietnam was hit hard by the pandemic and is lagging behind its regional peers in its recovery. Despite this, Vietnamese consumers are eager to embark on new adventures, ranging from family vacations to impromptu getaways or even indulging in outbound experiences as they seek to relive what they were deprived of during border closures,” said Winnie Wong, MasterCard country manager in Vietnam, Cambodia, and Laos.

The HSBC TravelOne Credit Card redemption platform brings together 16 international airline programs such as Vietnam Airlines, Krisflyer, Asia Miles, Enrich, Air Asia, etc., and four global hotel chain partners including Marriot Bonvoy, ALL – Accor Live Limitless, IHG One Rewards and Wyndham Rewards – with a combined total of over 20,000 hotels globally.