The proportion of cash transactions in total means of payment declined from 20.3 percent in 2004 to 14 percent in 2010 and around 12 percent at present, according to the State Bank of Vietnam.

Non-cash transaction services have developed vigorously over the last three years with the boom of banking cards, Internet banking, mobile banking and digital wallets.

Non-cash payments have increasingly been popular public servants, state employees, students and workers.

The card-based salary payment has generated huge profits for the State, banks and users. As of Q1 2013, 1.83 million public employees, or 66 percent of the total received salary through bank accounts.

Commercial banks have heavily invested in ATM or Point of Sale (POS) locations. So far, 14,400 ATM machines and 116,700 POS locations have been installed. Around 62 million cards were issued.

ATM card holders in Vietnam had 89.8 trillion VND (4.08 billion USD) in 42.7 million current accounts at the end of June, according to the latest data from the central bank which said it has taken measures to boost non-cash transactions.

Vietnam has set a target of reducing the proportion of cash payments to below 11 percent by 2015 and has 250,000 points of sales in use nationwide.-VNA