Vietnam is now a mainly cash-based society. A cash payment system exists in a majority of firms and daily transactions. People pay administrative fines in cash and withdraw money from ATM machines before entering supermarkets, because most of them mistrust banks and tend to keep cash as well as gold in their homes.
But as the technology develops and the number of internet surfers rises, especially among young people, the cashless system has started to increase with the birth of banking cards, internet banking, mobile banking and digital wallets. The government also decided to install a card-base salary payment system which has brought huge profits for the state and banks.
Previously, these services were hard to access in Vietnam. Point-of-sale terminals were sparse and customers had to pay high fees for the their use. The State Bank has ordered banks to stop collecting additional fees for the use of POS machines. They also asked for the installation of more POS machines at supermarkets, trade centres, hospitals and schools.
These transactions are further fostered as commercial banks collaborate to build a tighter and more cohesive POS system.
The Association of Vietnam Retailers also said that e-commerce is expected to increase in 2014. "People are no longer loyal to specific shops. They may be loyal to a brand and can buy it anywhere. The e-commerce market will be at an advantage because of this market trend. I think the rental fees for shops will drop next year," she said.
Speaking about the predictions of Master Card representatives, who said that e-commerce sales may reach USD7-8 billion by 2017, Vietnam E-commerce Association chairman, Nguyen Thanh Hung, said, "This would represent a steady progress, but also shows the scale and opportunities of e-commerce in this country. However, in a survey, only 30% of asked people selected e-commerce. They still prefer traditional transactions for fear of internet fraud."
Hung said they must improve the security system, logistics performance and prices to encourage customers.
