Deputy PM: Changing cash-payment habit boosts economic growth

Hanoi (VNA) – Changing cash usage habit to e-payment will not only boost economic growth but also promote Vietnam as a civilized nation, said Deputy Prime Minister Vu Duc Dam on December 16.

He made his remarks at the Vietnam E-Payment Forum in Hanoi held by the State Bank of Vietnam (SBV) and VnExpress, an online newspaper.

Online payment accounts for 90 percent of total transactions in developed countries and the Gross Domestic Products (GDP) hereby rose by about 1 percent, Dam explained.

Vietnam has been ready for e-payment in terms of infrastructure and the Government has set goals to stimulate online transactions for years, yet consumers seem not willing to change, he said.

The Deputy PM urged for greater coordination between relevant bodies to reduce cash payments alongside the design of incentives to encourage online transactions among local consumers.

Dinh Thi My Loan, President of the Vietnam Retailers Association, noted paying in cash remains a habit of a majority of Vietnamese people, the biggest barrier of e-commerce in the country today.

According to the Vietnam Bank Card Association (VBCA), 90 percent of the revenue from card payments was collected from ATM transactions, in which money withdrawal made up 85 percent while money transfer only contributed 14 percent.

The goal for a non-cash economy is still out of reach, Loan said.

Speaking of e-tax payment, SBV Vice Governor Nguyen Toan Thang said the SBV has been working with the Ministry of Finance to design an effective coordination system that helps tax payers make online payments easier.

Furthermore, the two state bodies may grant those making tax payments online exemptions and dispensation, he revealed.-VNA