Nov 01, 2018 / 14:57

Vietnam to further push cashless payment: governor

By the end of 2020, the ratio of cash transactions is expected to be reduced to below 10% and at least 300,000 point of sales (POS) are installed nationwide.

The State Bank of Vietnam (SBV) has been promoting the use of non-cash payment method recently and will further bolster it, according to SBV Governor Le Minh Hung. 
Illustrative photo.
Illustrative photo.
In the coming time, the SBV would give priority to investing in infrastructure and technologies, which are aimed to facilitate non-cash payment, Hung said at a Q&A session at the National Assembly on November 1. 

As of August 2018, the number of installed point of sales (POS) nationwide has increased by over 23% compared to the end of 2016, stated Hung, while the inter-bank payment system (IBPS) has been improved and secured. The number and value of transactions in the first eight months of 2018 increased by 28% and 30% year-on-year, respectively. 

According to Hung, Vietnam has witnessed a strong growth of transactions via new payment methods, in which e-payment in the January – August period grew by 48% in quantity and 27.7% in value against the same period in 2017. The same is applied to mobile payment, stated Hung. 

Notebly, non-cash payment has now been used widely in the public sector, Hung stressed. As of the end of August, the IBPS has been connected with the tax payment system at state treasury of 63 provinces and cities. 

Finance Minister Dinh Tien Dung said at the ongoing NA sitting on October 31 that his ministry will join hands with the SBV to promote non-cash transactions, online tax declaration and payment to reduce invoicing frauds.

According to a plan on non-cash payment in Vietnam in the 2016 - 2020 period approved by the prime minister, by the end of 2020, the ratio of cash transactions will be reduced to below 10% and at least 300,000 point of sales (POS) are installed nationwide. 

As of present, 40% of citizens in Vietnam have bank accounts. However, 90% of daily transactions are conducted in cash, while the rate goes up to 99% for transaction worth under VND100,000 (US$4.34), said Dao Minh Tuan, deputy general director of state-run Vietcombank.