Card transactions by Vietnamese tourists soared over 460% in H1

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The number of transactions made by Vietnamese tourists in South Korea during the first half of the year showed the sharpest growth among other visitors, increasing by 468 percent on-year, Korean credit card issuer BC Card said Friday.

The growth in Vietnamese tourists' transactions were significantly higher than those of all other foreign tourists, which stood at 358 percent.

The data released by BC Card was based on the total number of credit card and debit card transactions made by 1.2 million foreign visitors over the last three and half years in South Korea. It excluded transactions by those who stayed over 90 days, the maximum duration of the short-term visa, as it analyzed transactions made for the purpose of tourism and leisure.

Over half of the Vietnamese tourists’ transactions were made outside Seoul, the country’s capital.

By region, Seoul, Jeju Island, Gyeonggi Province, Busan, and South Jeolla Province witnessed an over 300 percent surge in the number of transactions by Vietnamese tourists.

This table shows the top five regions in South Korea that recorded the highest growth rate in the number of transactions by Vietnamese tourists in the first half of the year. From left: Seoul (798 percent), Jeju Island (527 percent), Gyeonggi Province (330 percent), Busan (318 percent), and South Jeolla Province (303 percent) (BC Card)

It showed that Vietnamese tourists travel widely across the country, underscoring their potential to spur consumption nationwide.

Vietnamese nationals are expanding their presence in Korea's tourism scene.

They were the biggest spenders in the country, according to another data unveiled by BC Card in May which analyzed the amount of foreign tourists' per-capita authorized card transactions in 2022.

Vietnamese tourists spent about 197,000 won ($154) on average while staying here, surpassing the spending by Chinese visitors.

A surge in the transaction volume was likely due to a recovery in the travel industry following the reopening of international flights as the pandemic shifted to an endemic phase this year.

Currently, Jeju Island, Busan and South Jeolla Province operate direct flights from Vietnam, making those regions readily accessible.

International attention due to the global campaign for Busan’s expo bid was also believed to have driven the surge in transaction volume in the region this year. Meanwhile, in South Jeolla Province, the new visa policy, allowing up to 15 days of stay without a visa for the Vietnamese group tourists, was implemented as of this March, and was seen as another contributing factor.

By retail sectors, those that recorded the highest increase rate were fashion accessories, and clothing, which jumped by 984 percent and 696 percent from last year, respectively. The global popularity of K-pop and K-dramas were seen as influencing this consumption pattern.

Additionally, traditional items often favored by foreign tourists such as cosmetics and health supplements continue to show steady popularity among Vietnamese tourists.

Having signed a major partnership deal with NAPAS last year to promote non-cash payments by Vietnamese tourists in Korea, BC Card has proactively established payment networks to enable Vietnamese tourists to use their local NAPAS card. NAPAS is the major payment network operator in Vietnam which has issued over 100 million cards.

Currently, payments by NAPAS card are only possible at some major duty-free shops and convenience stores within the country.

"If card payments using NAPAS cards are available nationwide, it will significantly boost the revenue of the overall domestic tourism industry,” BC Card said in the released statement.

By Song Jung-hyun(junghyun792@heraldcorp.com)