return icon

Mobile money to add up 0.5 ppts to Vietnam economic growth

Over 50% of the Vietnamese population does not have a payment account at banks, therefore, mobile money would offer a non-cash payment method for a large base of customers.

The Ministry of Information and Communications (MIC) has suggested the pilot implementation of mobile money right in the first quarter this year would help expand e-payment services to 100% of the population and boost economic growth by 0.5 percentage points as international experiences showed, ICT News reported.


Mobile money, which allows people to transfer money through cellphone account instead of a bank account, would boost the development of e-commerce, e-market for agricultural products, fintech companies and innovative startups, said Minister of Information and Communications Nguyen Manh Hung.

Hung made the statement in response to the instruction of the government on January 7 requesting the pilot implementation of using mobile money for products and services with low value and new payment methods.

Recent data showed over 50% of the population in Vietnam does not have a payment account at banks, therefore, mobile money would offer a non-cash payment method for a large base of customers and contribute to a higher rate of cashless transactions.

Additionally, mobile money is expected to change the behavior of Vietnamese people in using cash in transactions.

Hung said right after the State Bank of Vietnam (SBV), the country’s central bank, issued licenses for mobile carriers to provide mobile money services, 100% of mobile subscribers in Vietnam could use e-payment services overnight.

Tran Duy Hai, deputy director general of the Authority of Telecommunications under the MIC, said mobile money is a viable solution to promote financial inclusion in rural and remote areas, where the lack of financial infrastructure is preventing the people from accessing banking services.

More importantly, mobile carriers could utilize the existing telecommunications facilities to provide mobile money services, in turn saving substantial financial resources in investment, Hai added.

As of present, major carriers in Vietnam including Viettel, VNPT and MobiFone have asked the government to draft new policies for the implementation of mobile money.

Phung Anh Tuan, general secretary of Vietnam Association of Financial Investors (VAFI) said mobile money is currently a global trend and Vietnam should join the process as the country intensifies its efforts in global economic integration.

Under the 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 from 90% in 2016 to below 10%. Hanoitimes

Ngoc Mai

SBV removes foreign ownership limit in payment firms

SBV removes foreign ownership limit in payment firms

The State Bank of Vietnam (SBV) has announced it would remove regulations limiting foreign ownership in local intermediary payment firms from its draft Decree No 101.

Banks, fintech firms promote cashless payments during epidemic

Banks, fintech firms promote cashless payments during epidemic

To prevent the spread of the new strain of coronavirus in Vietnam, customers are encouraged to adopt cashless payment methods.


Aviation ground services to go-green to meet compliance

The Civil Aviation Authority of Vietnam (CAAV) is collecting comments on a draft circular stipulating that all businesses in the sector must have a plan to convert ground vehicles from fossil fuels to electric.

President visits, offers condolences to widow of late PM Abe Shinzo

President Nguyen Xuan Phuc visited and offered condolences to Abe Akie, the widow of late Japanese Prime Minister Abe Shinzo, at her home on September 28.


US firm pours capital in cross-border e-commerce project in Binh Duong


PM requests prompt measures to overcome Typhoon Noru’s consequences

Dim outlook for domestic auto component industry

Vietnamese automotive component industry has a dim outlook for growth as it lags behind those in many other regional countries, according to the Ministry of Industry and Trade (MoIT).

Animated series seeks to change stereotypes on Vietnamese products

Wolfoo, a YouTube children’s animated web series, which has reached more than 2 billion views a month, has changed the world’s stereotypes on Vietnamese products.

VN banking prospects from now to the end of the year

Under the circular, the State Bank of Vietnam told banks to reschedule debt repayments to help customers affected by the COVID-19 pandemic until June 30 this year.

JPMorgan: 65% of AirPods production to be located in Vietnam in 2025

JPMorgan analyst expects 20 percent of iPad, 5 percent of MacBook, 20 percent of Apple Watch and 65 percent of AirPods production to be located in Vietnam in 2025.

US$2.3 billion withdrawn from stock market, investors begin to worry

Concerns are increasing in the stock market after the State Bank of Vietnam (SBV) raised regulating interest rates and withdrew VND56 trillion (over US$2.3 billion) last week.

Teacher Nguyen Ngoc Ky writing with feet passes away

This morning, 75-year-old teacher Nguyen Ngoc K, who inspired many generations of students with his determination to rise up in life, passed away at his home in Thu Duc City.

Typhoon Noru passes through central Vietnam

Super typhoon Noru swept through central Vietnam on September 27 night and early September 28, bringing strong winds and torrential rains.

Discovering craft villages in Buddhist centre in Quang Ninh

Coming to Yen Tu relic site in Quang Ninh province – Vietnam’s major Buddhist centre, tourists can also experience traditional crafts such as making hats, bamboo handicrafts, and wood carvings.

Ministry drafts mechanism to adjust average retail power price

The Ministry of Industry and Trade (MoIT) is drafting a Prime Minister's Decision on the mechanism for adjusting the average retail electricity price.

Foreign investment disbursement hits record high in nine months

Disbursement of foreign direct investment (FDI) in the first nine months of this year reached 15.4 billion USD, up 16.2 % year-on-year and marking a record high, a report from the Foreign Investment Department (FIA) has shown.

Foreign Minister Bui Thanh Son pays visit to Germany

Minister of Foreign Affairs Bui Thanh Son paid an official visit to Germany from September 26-27 at the invitation of his German counterpart Annalena Baerbock.