An Agribank office in HCM City (Photo: agribank.com.vn) Hanoi (VNA) - Deputy Prime Minister Vuong Dinh Hue has signed a policydecision encouraging cash-free transactions in Vietnam in order to reduce thenumber of cash-based deals, improve overall electronic payment methods andcontrol tax evasion.
Under the plan, by 2020, total cash transactions will be less than 10 percentof total market transactions; all supermarkets, shopping malls and distributorswill accept credit cards; 70 percent of water, electronics andtelecommunication service providers will accept cash-free payments fromhouseholds and individuals, and 50 percent of total urban households will useelectronic payment methods for daily transactions.
The policy also proposes the development of new payment methods for rural andremote areas in order to encourage financial inclusion and increase overallaccess to transaction services, so that at least 70 percent of Vietnamese overthe age of 15 will have bank accounts by the end of 2020. Social welfare andpensions will also be paid through electronic payment methods.
Cashless payment is an inevitable step, said Le Xuan Nghia, a member of theNational Advisory Council on Finance and Monetary Policy. The move will saveboth time and cost to the nation, as well as to businesses and individuals.
Nghia advised implementing the policy in the very near future. The fewremaining challenges include online security for customers at commercial banksand the need for an automatic payment centre to be established by the StateBank of Vietnam (SBV) to connect between paying customers and businesses orcommercial banks. He believes this could be achieved in three to four years,noting that neighbouring countries like Singapore, Malaysia and Thailand havelong had such centres.
The electronic commercial payment system will connect bank paymentinfrastructure with retail and business to complete a national payment network,as well as to governmental financial agencies, such as the SBV, the GeneralDepartment of Customs and the General Department of Taxation.
The Government will conduct research and devise various procedures and policiesto boost electronic transaction in taxation and online commerce.
The shift to electronic payments and commerce will also enable transparency,prevent tax evasion and improve documentation for both individuals andorganisations.
Point of sale systems and automatic teller machines will be established andimproved for retail purposes, and will expand to health care facilities, publictransportation and the education sector. Use of multi-purpose magnetic cards willalso be encouraged. This will apply to daily transactions, as well as purchasesof real estates and properties of high value, such as vehicles.
In order to encourage individuals as well as organisations to start cash-freetransactions, fees on cash payments could be increased while those onelectronic payment for credit organisations and commercial banks could bereduced.
However, Nghia also suggested that several groups would not benefit fromelectronic payments, such as payment collectors and those with low incomes.
The policy is expected to change the payment habits of Vietnamese and createopportunities for startups in the electronic payment area. Many businessesspecialising in online payments, such as MoMo mobile payment, eMonkey, Payoo,VTC Pay or BankPlus, will be increasingly accessible and familiar to people.-VNA
VNA
