The ratio of cashless payments in Vietnam remains low, standing at only 11.49 percent of total means of payment, according to a recent report from the Central Institute for Economic Management (CIEM).
The ratio of cashless payments in Vietnam remains low, standing at only 11.49 percent of total means of payment
Up to 99 percent of transactions forgoods and services valued below 100,000 VND (4.3 USD) are paid in cash, saidthe report.
According to a Government plan oncashless payment in the 2016-2020 period approved by the Prime Minister, theratio of cash transactions will be reduced from 90 percent in 2016 to below 10percent by the end of 2020.
The Government has been trying topromote cashless payments in recent years, but a majority of Vietnamese peoplestill prefer cash. According to the Ministry of Industry and Trade, 60 percentof Vietnamese adults have a bank account, but 80 percent of them prefer to usecash in daily transactions.
Although e-commerce has been risingrapidly at an annual growth rate of 25-30 percent in recent years, 80 percentof customers still use cash-on-delivery payments for products they orderonline, the ministry reported.
To boost cashless payments, banksare proposing tax incentives for businesses adopting e-payments, saying thatcashless payment remains unpopular in Vietnam because people prefer to see andtouch products before paying for them. Thus, if local banks can guarantee tocompensate customers for fraud and fake products, they will trust cashlesspayments and use them more regularly.
Dao Minh Tuan, deputy generaldirector of Vietcombank, said that most businesses were reluctant to purchasepoint-of-sale (POS) devices or establish e-payment services with the banksbecause there were currently no incentives to attract them.
Incentives, especially in taxes,would attract more businesses to cashless payments, which will increase paymenttransparency and reduce tax evasion, Tuan said.
As of September 30, 2018, Vietnamhad a total of 18,170 ATMs, up 4 percent against the end of 2016, and 294,500POS across the country, up 11.8 percent compared to the end of 2016.-VNA
The State Bank of Vietnam is working to complete the legal corridor and build rational mechanisms to boost cashless payments, which helps prevent corruption, money laundering, and tax invasion.
The authorities in HCM City have requested local departments and agencies to implement cashless transactions for all household bill payments including school tuition.
Vietnam and Thailand are experiencing a boom in mobile payments as more people use e-wallets to pay for goods and services without going through an intermediary like a bank.