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Home / Economy / Banking & Finance
Over 90% of Vietnamese population still favor cash use
Nguyen Tung 12:03, 2018/07/17
A non-cash economy is one of the main pillars to build an e-government, which should be the government`s priority in the coming time.
A survey by the World Bank showed that the number of non-cash transactions per head in Vietnam is 4.9%, much lower than China's 26.1%, Thailand's 59.7%, and Malaysia's 89%.
 
Illustration photo.
Illustration photo.
Despite being one of the fastest growing e-commerce markets in the region, the rate of online transactions in Vietnam remains low. 

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. 

However, it would be an uphill task to reduce the ratio of cash to total liquidity from the current 90% to 10% in just three years, and requires strong efforts from the banking system and government's supports. 

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 Vietcombank.

"Vietnamese customers are in favor of cash payment, due to its non-complicated and convenient nature, translating into fast and widely accepted payment method. Besides, this payment method does not incur cost, and is considered safe for not leaving track record behind or leaking private information," Tuan added.

Moreover, non-cash transaction is one of the main pillars to establish e-government, which should be the government's priority in the coming time. 

According to experts, in order to promote government's cashless policies, it is vital to ensure the quick and safe process of transaction, ensuring security and privacy for all parties involved. 
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