return icon Vietnamnet.vn

Non-cash payment programs encounter barriers

VietNamNet Bridge - The smartphone-based payment service market in Vietnam has become busy in the last six months, but Vietnam is still far from its ‘non-cash payment’ target.
VietNamNet Bridge - The smartphone-based payment service market in Vietnam has become busy in the last six months, but Vietnam is still far from its ‘non-cash payment’ target.


{keywords}

Vietnam is still far from non-cash payment target




The country had great opportunities to develop mobile payment services as the Vietnamese retail market, with high growth rates, is among the top 3 in Asia. According to GSO (General Statistics Office), the retail revenue of goods in 2016 reached $118 billion, up 10.2 percent over 2015.

Mobile Vietnam, a report released in April 2017 by Appota, the provider of smartphone-based platforms, said that 72 percent of Vietnamese had used smartphones by 2016 (the figure was 20 percent in 2013). By the end of June 2017, Vietnam had 48 million broadband mobile subscribers.

Bank cards and smartphones are increasingly popular in Vietnam. The State Bank of Vietnam (SBV) reported that more than 110 million bank cards had been issued in Vietnam by the end of the second quarter, and the figure is expected to rise to 150 million in 2018.

However, despite favorable conditions, payment service providers are still meeting difficulties,

Samsung Global’s deputy CEO admitted that problems occurred when it began launching Samsung Pay in Vietnam. Vietnamese laws only set regulations for businesses which act as payment intermediaries. 

The country had great opportunities to develop mobile payment services as the Vietnamese retail market, with high growth rates, is among the top 3 in Asia. According to GSO, the retail revenue of goods in 2016 reached $118 billion, up 10.2 percent over 2015.

Samsung Pay is not an intermediary, but is the provider of platform, apps and payment solutions. Therefore, it is not easy to apply current regulations to Samsung Pay’s services.

At least 50 percent of the population is working age but only 40 percent access finance services. Most of them live in cities. 

A survey by the World Bank showed that the number of non-cash transactions per head in Vietnam is 4.9 percent, much lower than Thailand’s 59.7, Malaysia’s 89 and China’s 26.1 percent.

Also according to World Bank, 65 percent of adults send/receive money through unofficial systems, or pay for tuition and other services in cash.

An important barrier exists as 6.2 million adults cannot access finance services. 2.2 million say it is too expensive to use, 2.3 million find it difficult to open accounts and 1.1 million don’t have confidence in the financial system.

According to Can Van Luc, chief economist of BIDV, the first thing Vietnam needs to do is heighten public awareness of new payment methods.

Luc sees one advantage which can help increase non-cash payment methods: Vietnamese show an open attitude towards new payment methods. 

According to Visa, nine out of 10 consumers are willing to try new payment methods, while 88 percent said they are likely to use a smartphone for payment.

MORE NEWS

Electronics industry capacity must keep up with increased investment

Vietnam needs policies to enable the electronics industry to ready its supply chain as the country becomes ever more attractive for investment, Deputy Director of the Industry Agency under the Ministry of Industry and Trade Pham Tuan Anh said.

VN central bank shifts up interest rates to combat US Fed adjustments

After the State Bank of Vietnam implemented the new operational interest rate on September 23, all joint-stock commercial banks, with the exception of state-owned ones, have adjusted the deposit interest rate for most terms.

HCM City targets international cruise tourists

Ho Chi Minh City has great potential to attract international cruise tourists as part of an effort to speed up tourism recovery post-pandemic, experts said.

Waste criteria lacking for nation’s IPs

Vietnam’s industrial parks are in the process of transitioning to more ecological models, but are struggling due to a lack of regulations on reusing treated waste and wastewater.

Vietnam experiences solid rise in production

The Vietnamese manufacturing sector rose solidly inside growth territory at the end of the third quarter of the year.

VN-Index bounces back from two-year low

The benchmark VN-Index on Wednesday regained the 1,100-point landmark after falling to a two-year low, but low liquidity may threaten the market recovery in the next sessions.

Sexual-assault victims choose to remain silent amid backlash on social media

Many travelers have told VietNamNet that they had been victims of sexual assault but later decided not to report their cases for fear of being ridiculed and blamed.

'South Korean street’ in HCM City deserted as business people leave

Amid business decline, some South Korean businessmen have gone bankrupt or shut down their business and left for their home country. It’s unclear if they will come back.

Foreign tech firms scale up operations in Vietnam

Molex, the world’s leading electronic component and connection device manufacturer, has announced a plan to expand its production facility in Hanoi with a total production area of 16,000 sq m.

Vietnam’s veggie, fruit imports from China surge

Vietnam spent some US$473 million importing vegetables and fruits from China between January and August, surging by 74% year-on-year and accounting for 38% of the country’s total veggie and fruit imports.

Legal move towards fair competition in pay TV market

A new decree on the use and management of broadcasting services aims to create an impartial playground between domestic and foreign pay TV service providers.

79 villas to be pulled down in Phu Quoc for construction violations

Authorities in Phu Quoc Island in the southern Kien Giang Province are removing 79 villas that were illegally built in Duong To Commune.

Vietnam needs large domestic shipping lines

The lack of domestic shipping firms has caused difficulties for export companies.

VN seeks ways to increase export of organic farm produce

The organic food market was expected to reach $437.36 billion by 2026 with a compounded annual growth rate of 14 per cent.

Twins survive after premature birth, weighing just 500g

The National Hospital of Obstetrics and Gynecology has for the first time successfully bred twins who were born at 25 weeks, each weighing just 500g.
back_to_top