Vietnam Loyalty Market Outlook to 2030

Vietnam Loyalty Market Overview

• The Vietnam Loyalty Market was valued at USD 962 million. The growth in the loyalty market is attributed to increasing digitalization, evolving customer behavior, and the rising need for personalized marketing. The use of data analytics and artificial intelligence (AI) to tailor loyalty programs has played a significant role in driving market demand.
• Major players in the market are VinID, FPT Telecom, ZaloPay, and My Viettel. These players dominate the market by offering a wide range of loyalty programs and customer engagement tools. Their strategies involve partnerships with various sectors to offer omnichannel experiences that cater to the evolving preferences of Vietnamese consumers.
• In 2023, ZaloPay, a prominent digital payment platform, expanded its loyalty program by integrating it with over 50 retail brands in Vietnam, enabling users to collect and redeem points seamlessly across different platforms. This initiative reflects the increasing importance of multi-brand loyalty programs in capturing market share.
• The Ho Chi Minh City region dominates the market due to its high urbanization rate and advanced digital infrastructure. The total loyalty program enrollments, thanks to the concentration of tech-savvy consumers and retail businesses. The region's dominance is expected to continue as it remains a hub for innovation and digital transformation.

Vietnam Loyalty Market Segmentation

The market is segmented into various factors like program, industry, and region.

By Program Type: The market is segmented by program into point-based, tiered, subscription-based, and cashback programs. Point-based programs held a dominant market share due to their simplicity and widespread adoption across sectors such as retail, hospitality, and telecommunications. Companies like VinID and My Viettel have established strong loyalty ecosystems by offering point accumulation across diverse product categories.

By Industry: The market is segmented by industry into retail, e-commerce, financial services, and hospitality. Retail led the market by Vietnams booming retail sector, which is increasingly adopting customer retention strategies. Retail loyalty programs are typically easy to understand and encourage repeat purchases, giving this sub-segment a competitive edge.

By Region: The market is segmented by region into North, South, East, and West Vietnam. Southern Vietnam dominated the market due to the regions advanced digital infrastructure, a growing number of retail and hospitality establishments, and a consumer base that is quick to adopt new technologies.

Vietnam Loyalty Market Competitive Landscape

• Visa: In May 2024, Visa partnered with leading Vietnamese e-wallets MoMo, VNPAY, and ZaloPay to enhance seamless digital payment experiences. This collaboration allows Visa cardholders to make cashless purchases through QR codes at small and medium enterprises. This partnership supports Vietnams cashless society goals, with an expected 50 million active e-wallet users by the end of 2024.
• My Viettel: In 2023, Viettel achieved impressive growth with a 5.4% revenue increase, totaling 172.5 trillion VND. Its telecommunications market share rose and it led the non-mobile sector, securing 43% of the fixed broadband market. Viettel also expanded its 5G network across all 63 provinces, further strengthening its leadership.

Vietnam Loyalty Market Analysis

Market Growth Drivers

• Digital Payment Ecosystem Expansion: Vietnam has been rapidly expanding its digital payment infrastructure. In 2024, the total volume of digital payments in Vietnam exceeded 2.2 billion transactions, reflecting growing trust in e-payment solutions and fostering an environment where businesses can enhance their loyalty programs by integrating rewards through online purchases, especially in urban areas.
• Telecommunications Sector Investments: Viettel is set to invest nearlyVND 30 trillionto achieve nationwide 5G coverage by2024. This expansion is anticipated to generate revenues ofUS$1.5 billionby2030, driven by increased demand for digital services and enhanced connectivity across various sectors, including smart cities and industry.
• Growth in E-commerce: In 2024, Vietnams e-commerce revenue surpassed VND 310 trillion, fueled by rising internet penetration and growing consumer preference for online shopping. E-commerce platforms are increasingly using loyalty programs to encourage repeat purchases, making it a vital growth driver for the loyalty market.

Market Challenges

• Data Privacy Concerns: The implementation of Vietnams Data Protection Law in 2024 has increased scrutiny on how businesses collect and use customer data for loyalty programs. Companies now face the challenge of complying with stricter regulations while still personalizing offers and rewards for customers.
• Limited Digital Infrastructure in Rural Areas: Despite advancements in urban centers, many rural areas still lack the digital infrastructure needed to support loyalty programs. In 2024, only 40% of rural consumers had access to high-speed internet, limiting the reach of digital loyalty solutions outside major cities.

Government Initiatives

• National Digital Transformation Strategy: The Vietnamese governments Digital Transformation Strategy, which aims to achieve 70% digitalization of transactions by 2025, allocated VND 2 trillion in 2024 for enhancing digital infrastructure. This initiative supports businesses implementing digital loyalty programs by providing the necessary technology and platforms.
• Tax Incentives for Retail Expansion: To encourage the growth of the retail sector, the Vietnamese government provided tax incentives in 2024, reducing corporate tax rates for businesses expanding in rural areas. This indirectly supports the loyalty sector by promoting retail businesses that often implement customer loyalty schemes to drive sales.

Vietnam Loyalty Market Future Outlook

Future trends in the market include the growing integration of AI in loyalty programs, adoption of blockchain for transparency, gamification of customer rewards, and increased usage of tiered loyalty systems to target high-value customers.

Future Market Trends

• AI and Machine Learning Integration: By 2028, AI-driven loyalty programs will become the norm in Vietnam, offering highly personalized rewards and predictive analytics. This shift will result in a 30% increase in customer engagement across retail, e-commerce, and telecommunications sectors as companies leverage AI to deliver real-time rewards.
• Blockchain Adoption in Loyalty Programs: Blockchain technology will play a significant role in ensuring transparency and interoperability across different loyalty platforms by 2028. Businesses will use blockchain to enable seamless point transfer and redemption across multiple brands, enhancing the value proposition of loyalty programs.