Cashless nation in 2020 - Vietnam’s new policies

With the policies from government, and the aim to turn a cash-dominant country into nation using the electric payment in primary. Will it become reality from 2020? 

According to a policy decision which has been signed by Vietnam’s deputy of prime minister Vuong Dinh Hue aimed to reduce dramatically cash transactions and improve electronic payment in 2020.

The new aim of government not only provide high-tech infrastructure in Vietnam, which can turn Vietnam into a cashless nation, it also tent to change fundamentally payment habits of Vietnamese.

In specificallly, this plan aimed to reduce the number of cash transactions in all distributors, supermarkets and shopping malls less than 10%. 70% of transactions related to utility services and telcos; and 50% of total urban households.

To encourage individuals and companies use eletronic payment menthod, fee on cash transaction should be increased and those on electric payments should be reduced.

Online payment will take the dominant soon in Vietnam 

This plan suggest to expand the electric payment network to remote areas, which mean this decision aimed to turn Vietnam into national electric payment network. The purpose would be to increase basic financial services and have a least 70% of Vietnamese  over 15 ownes a bank account by the end of 2020.

Mr. Le Xuan Nghia, a member of the National Advisory Council on Finance and Monetary Policy said this policy will bring benefits to both customers and companies. He noted that this new payment menthod reduces cost and improve the efficiency in transactions.

Despite Vietnamese still prefer cash payment to electric payment, however, this behavior witnessed a drop from 14% in 2010 to 12% in the current. According to a report that released by State Bank of Vietnam annouced the number of bank accounts, cards, POSs and ATMs have increased sharply, a proof that Vietnam is ready to shift into a modern and electric economy. E-commerce raised in 2015, at US$ 4.07 billion, a 37% increase compared to 2014.

VTC Pay, which is providing VTC Pay gateway - a electric payment menthod. As a piooner is the field, VTC Pay always offer our customer the best, the most convenience payment options. With over 400,000 active users, US$6,5 million transaction value, VTC Pay is the piooner in the electric payment in Vietnam and we are desired looking for co-operate with partners in region and oversea.

“However, changes in payment behavior of consumers and new policies, as well as the recent encouragement of government to increase non-cash transactions are factors which motivate e-payment service providers.”

Mr. Viet Tran Quang, Head of VTC Pay.