08:13 (GMT +7) - Monday 22/07/2019

EDITOR LETTER

     June 16 was the first “Cashless Payment Day” held in Vietnam and attracted interest from banks, financial companies, and customers in a bid to promote cashless payments in a society where cash remains “King”. According to a recent report from the Central Institute for Economic Management, the proportion of cashless payments in Vietnam is only 11.49 per cent of the total and considered particularly low. Some 99 per cent of transactions for goods and services valued at less than VND100,000 ($4.3) are paid for with cash.      The government has adopted certain measures to promote cashless payments over recent years. Under Decision No. 681/QD-TTg from the Prime Minister on implementing sustainable development targets to 2030, the State Bank of Vietnam (SBV) must take action to ensure that 70 per cent of the Vietnamese population over the age of 15 have bank accounts by 2020, more than 80 per cent by 2025, and 90 per cent by 2030. The government also directed the Ministry of Finance to review and amend financial regulations under its management before the third quarter of 2019 to create favorable conditions for companies to use cashless payments.      Our Cover Story this month reports on how the rapid development of technology has brought benefits and opportunities to banks, consumers, and management agencies. In order to promote cashless payments, Vietnam needs as many new payment products and services as possible. In the meantime, stakeholders in the banking industry should exploit the potential of digitalization to this end.      According to Statista, the total value of digital transactions in Vietnam is estimated to hit $8.5 billion this year, up 20 per cent against 2018. There were 29 licensed non-bank payment intermediary services in the country as of February, according to the SBV, with around 20 of these offering e-wallets. More than 40 banks provide mobile payment services. The growth in Vietnam’s middle class and the growing number of internet users has spurred on the digital economy. With such potential in its digital economy combined with bright economic prospects, it’s no wonder Vietnam is becoming a hub for fintech development.

Editorial Staffs

Professor Dao Nguyen Cat, Editor-in-chief

Mr Nguyen Quoc Uy, Deputy Editor-in-Chief, Head of Department of International Publications

Ambassador Nguyen Phu Binh, Deputy Editor-in-Chief

Ms. Ta Thu Trang, Managing Editor

Mr. John Harding, English language Editor

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