The ratio of cashless payments in Vietnam remains low, standing at only 11.49 percent of total means of payment, according to a recent report from the Central Institute for Economic Management (CIEM).
The ratio of cashless payments in Vietnam remains low, standing at only 11.49 percent of total means of payment.(Photo: VNA)
Hanoi (VNA) - The ratio ofcashless payments in Vietnam remains low, standing at only 11.49 percent oftotal means of payment, according to a recent report from the CentralInstitute for Economic Management (CIEM).
Up to 99 percent of transactions forgoods and services valued below 100,000 VND (4.3 USD) are paid in cash, saidthe report.
According to a Government plan oncashless payment in the 2016-2020 period approved by the Prime Minister, theratio of cash transactions will be reduced from 90 percent in 2016 to below 10percent by the end of 2020.
The Government has been trying topromote cashless payments in recent years, but a majority of Vietnamese peoplestill prefer cash. According to the Ministry of Industry and Trade, 60 percentof Vietnamese adults have a bank account, but 80 percent of them prefer to usecash in daily transactions.
Although e-commerce has been risingrapidly at an annual growth rate of 25-30 percent in recent years, 80 percentof customers still use cash-on-delivery payments for products they orderonline, the ministry reported.
To boost cashless payments, banksare proposing tax incentives for businesses adopting e-payments, saying thatcashless payment remains unpopular in Vietnam because people prefer to see andtouch products before paying for them. Thus, if local banks can guarantee tocompensate customers for fraud and fake products, they will trust cashlesspayments and use them more regularly.
Dao Minh Tuan, deputy generaldirector of Vietcombank, said that most businesses were reluctant to purchasepoint-of-sale (POS) devices or establish e-payment services with the banksbecause there were currently no incentives to attract them.
Incentives, especially in taxes,would attract more businesses to cashless payments, which will increase paymenttransparency and reduce tax evasion, Tuan said.
As of September 30, 2018, Vietnamhad a total of 18,170 ATMs, up 4 percent against the end of 2016, and 294,500POS across the country, up 11.8 percent compared to the end of 2016.-VNA
The State Bank of Vietnam (SBV) is working to complete the legal corridor and build rational mechanisms to boost cashless payments, which helps prevent corruption, money laundering, and tax invasion.
A lack of cooperation between banks, service providers and customers is the major issue preventing the widespread use of cashless payments in Vietnam, Nguyen Dinh Thang, Chairman of LienVietPostBank’s Board of Directors, said at the Banking Vietnam 2019 event in Hanoi on May 30.
Policies and reality in building a cashless society in Vietnam was the theme of a workshop held in Ho Chi Minh City on June 11 by the State Bank of Vietnam (SBV) in coordination with the Ministry of Information and Communication and Tuoi Tre (Youth) newspaper.
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The ratio of cashless payments in Vietnam remains low, standing at only 11.49 percent of total means of payment.(Photo: VNA) 
