The State Bank of Vietnam (SBV) has issued a resolution to boost cashless payments in the country.
A customer conducts a cashless transaction at a store. The State Bank of Vietnam (SBV) is urging businesses and ministries to boost the use of cashless payments this year. — Photo baochinhphu.vn
In SBV’s Resolution 01/CT-NHNN, issued on January 3, Governor Le Minh Hung asked financial institutions and SBV units to improve their performance, ensure macroeconomic indicators are accomplished and the banking sector operates healthily in 2020.
Among key tasks set for 2020 is to boost the use of cashless payments, as the SBV and the Ministry of Information and Communications are working to launch mobile money services this year.
In the resolution, banks are asked to encourage the use of cashless payments for government-funded services and assure the payment system functions properly, securely and stably.
“(Banks) must improve and upgrade their technology and telecommunication facilities, develop digital banking services and assure cybersecurity in their activities,” the resolution stated.
The SBV’s latest resolution is expected to comply with the Government’s Resolution 02, which puts the use of cashless payment among key tasks to improve the business environment and national competitiveness in 2020.
In the resolution, the Government requests ministries, ministers and ministry-level agencies to put at least 30 per cent of their services online, and allow people and enterprises to make cashless payments by different methods.
By the end of 2020, the SBV, Ministry of Justice and related agencies must complete policies on mobile money services to help regulators deal with cross-border transactions.
According to the SBV, the number of ATMs totalled more than 18,900 at the end of October 2019, the number of point-of-sale (PoS) machines was nearly 283,000 and the number of cards in circulation was 98.2 million.
The figures were up 17.3 per cent, 44.5 per cent and 15.8 per cent on-year, respectively.
Average trading value via interbank electronic payment system (IBPS) was VND375 trillion (US$17 billion) per day.
Trading values made via PoS machines, mobile phones and online were VND491 trillion, VND4.26 trillion and VND17.7 trillion, respectively.
The three figures were up 66.3 per cent, 221.2 per cent and 36.6 per cent on-year, respectively.
In 2020, the SBV targets to keep average inflation below 4 per cent and total credit growth at 14 per cent and maintain a stable macroeconomic condition, as well as stable monetary and foreign exchange markets.
The SBV also asked its units and financial institutions to make sure loans are provided to the right borrowers, avoid bad debts and create a sufficient capital channel for the economy.
The banking sector must also improve the quality of administrative procedures in line with the Government’s attempt to improve the domestic business environment and national competitiveness. – VNS
As of present, just 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).
Cashless payments would not only increase of the circulation of capital, it would also help boost the internet economy, said Deputy Prime Minister Vu Duc Dam.