Are there any fees for issuance of a credit card in Vietnam?

Regarding this matter, LawNet would like to answer as follows: 

1. Are there any fees for issuance of a credit card in Vietnam?

Based on Article 1, Clause 5 of Circular 19/2016/TT-NHNN on card fees and charges:

- Only card issuers are permitted to collect fees and charges from cardholders.

- Each card issuer must collect fees and charges according to its own schedule of card service fees and charges and must not collect any additional type of fees/charges not mentioned in the announced schedule of card service fees and charges. The schedule of card service charges must specify types of fees and charges applicable to every card and card services. The schedule of card service fees and charges of card issuers must comply with regulations of law, be posted publicly and provided for cardholders before its application and upon any change to this schedule.

- Types of notification and supply of information of those charges to cardholders must be specified in the agreement on card issuance and usage.

- A period of at least 7 days is required for the application of any change of the service charges from the date on which it is informed and such period must be specified in the agreement on card issuance and usage.

Therefore, when you apply for issuance of credit card, you will have to pay a fee according to the regulations of the bank you choose.

Vietnam currently has nearly 50 banks with different customer policies and benefits. The fee for the issuance of a credit card can range from 100,000 to 2,000,000 VND, depending on the type of card and the policies of each bank.

Currently, most banks have free credit card issuance programs, so if you have a need to open a card, please search for credit card issuance information on the official websites of the banks to make the best choice.

2. What are the types of fees when applying for the issuance a credit card?

In addition to the aforementioned fee, when applying for the issuance a credit card, you should also consider other related fees, such as:

+ Annual fee: This is an annual fee charged to maintain your credit card. The annual fee may vary depending on the type of card and the issuing bank. Before applying for the issuance a credit card, carefully consider these fees and compare them among different options to choose a card with a reasonable annual fee. This fee usually ranges from 500,000 - 2,000,000 VND per year.

+ Cash withdrawal fee from credit card: This is a fee that the bank will charge immediately when you successfully withdraw cash from your credit card. Typically, this fee is around 4% of the amount withdrawn. In addition, you will also have to bear a high interest rate when conducting this transaction through a credit card.

+ Other fees: In addition to the annual fee and cash withdrawal fee from the credit card, you may also be charged other credit fees such as foreign exchange conversion fees, late payment fees, and statement fees. You should carefully read the terms and conditions of the card to understand these fees and how to avoid or minimize them.

3. How long does it take to issue a credit card?

The time it takes to issue a credit card depends on the bank, the type of card, and the complexity of the process. When you apply for a card, the bank will review and decide on card approval based on the following basic criteria:

+ Credit score: Your credit score indicates your ability to pay and your previous borrowing history. A good credit score will increase the chances of quickly approving your credit card application.

+ Income: This factor helps the bank evaluate your ability to repay loans and your personal financial responsibility.

+ Credit history: A clear credit history, without bad debts or credit violations, will leave a positive impression during the approval process.

+ Personal financial situation: The bank may consider your existing assets and debts to assess your ability to pay and financial stability.

Typically, this process takes 7–14 days with traditional card opening methods, while for online card opening, the time is shortened to about 5–7 days, depending on the region.

In summary, whether or not you have to pay a fee for the issuance of a credit card depends on the bank and type of credit card you choose. (Most basic credit cards nowadays do not have an issuance fee.) The time it takes to issue a card can range from 5 - 14 days, depending on the bank and the type of card you choose.

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