Customer loyalty is an important factor which has a significant effect on the profitability of the firm. The cost of keeping an existing customer to stay with the firm is much lower than the cost of acquiring a new customer. The purpose of this research is to build and test a model of factors effecting customer loyalty in Vietnamese banking industry. The data was obtained by distributing questionnaire to 400 bank customers in Ho Chi Minh City, Vietnam and analyzed by structural equation modeling (SEM). The results indicated that customer loyalty is positively and significantly influenced by perceived service quality (SERVPERF), corporate image, customer satisfaction, and switching costs. Additionally, the results revealed that perceived service quality has a significant effect on both corporate image and customer satisfaction.