Digital transformation towards a cashless society is an inevitable trend under Industry 4.0 that not only helps Vietnam to boost economic recovery but also realizes the target of financial inclusion.

Deputy Prime Minister Le Minh Khai stressed the view during a conference discussing the path for Vietnam to become a cashless nation today [November 19].

Deputy Prime Minister Le Minh Khai. Source: VGP

“The Vietnamese Government is determined to continue promoting non-cash and digital payments for Vietnam to eventually become a digital society that offers a business environment of greater transparency and convenience for businesses and the people,” Khai said.

According to Khai, as non-cash payment is a key component during the national digitalization strategy, the adoption of such a method at a national scale would lay the foundation for Vietnam to realize its socio-economic development goals in the coming time.

The Deputy PM noted the Government has recently approved the non-cash payment development strategy for the 2021-2025 period, which aims to make cashless payment a common practice for people in urban areas, and gradually be adopted in rural or remote regions.

By 2025, the total transaction values of non-cash payments would be 25-fold higher than the GDP, and 80% of the population from 15 years of age to have a bank account.

Khai requested Government agencies to continue finalizing legal frameworks to facilitate digital transformation and non-cash payments, especially in the launch of new business models based on Industry 4.0.

“In addition to the criteria of convenience, non-cash payment must ensure safety and transparency,” he said, adding the legal system should be in place to protect all parties in the process, including service providers, users, and the macro-economic fundamentals.

He also stressed one of the most significant aims of fostering non-cash payment is to aid the anti-corruption drive, which would further enhance the country’s reputation on the global stage.

Another key aspect mentioned by Khai is the necessity for the authorities to raise public awareness of the significance of non-cash payments.

“Only when the people are aware of the benefits of these methods then the Government’s efforts could be considered a success,” he added.

In this regard, Editor-in-Chef of Tuoi Tre Newspaper Le The Chu said the press alongside legal framework and technology infrastructure would be the three main pillars to lead Vietnam towards a cashless nation.

“The public should be well informed of the advantages from non-cash payment methods, especially during the current pandemic, and then changes their consumption behavior for good,” Chu said.

SBV Governor Nguyen Thi Hong.

Pay for every daily need via online payment

Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong added to further facilitate non-cash payment, the agency has been actively working on a favorable legal environment for the new payment technologies to thrive.

Meanwhile, intermediary payment services providers and banks have also invested in technologies and infrastructures to set up digital ecosystems of services and products that meet customers’ demands, Hong added.

 “Via mobile banking or e-wallet, customers are now able to pay for all of their daily needs from paying bills, shopping, to booking a ride, air-ticket, train or tours,” Hong said.

Statistics from the SBV revealed mobile payment averaged strong growth of 90% in quantity and 150% in value every year. Since March, there have been 1.8 million bank accounts opened online via the electronic Know Your Customer (eKYC) from a total of 110 million active accounts in Vietnam.

The banking sector has also been providing incentives for customers who resort to online payment, including a 50% fee cut when making payment through inter-banking payment system; or 70-100% rate cut in other digital payment services with a total amount of VND1.55 trillion ($68.3 million) this year.

In the coming time, Hong said the SBV would focus on finalizing Government’s decrees on non-cash payment and fintech sandbox as part of the national strategy to promote cashless payment in Vietnam during the 2021-2025 period.