Non-cash payments continue to grow rapidly in Việt Nam, requiring a focus on ensuring payment security, a representative of the State Bank of Việt Nam said at a press conference on Cashless Day 2024 held in Ho Chi Minh City on May 28.

The trend of electronic and non-cash payments in the Vietnamese economy in 2023 continued to record growth of 52.35% in volume over the same period last year.

Cashless payments are developing rapidly in Vietnam, especially after the COVID-19 pandemic, with transactions via banks averaging 40 billion USD per day, said the State Bank of Vietnam.

With emerging technologies such as AI and blockchain, Việt Nam has the ability to leverage data connectivity to create ‘an integrated payment ecosystem’ to promote cashless payments, experts said at a meeting last Friday in HCM City.

For Vietnam to fully tap into the digital future, experts say institutions and policies must be reformed to reflect Government commitments.

The People's Committee of Dau Tieng district in the southern province of Binh Duong plans to establish a pilot project that uses cashless payments at traditional markets, grocery stores and other businesses.

The COVID-19 pandemic has been brought under control, and life for most people returned to normal. However, non-cash payments, encouraged during the pandemic to limit contact, have become popular among many people.

Cashless payments have become a norm in many countries in recent years, bringing great benefits to individuals in the payment process.

The COVID-19 pandemic, with its complicated developments, has given a boost to e-commerce, with non-cash payments accounting for 70 percent of total retail transactions in Vietnam last year.

Demand of goods in Ho Chi Minh City, the country’s biggest, is increasing gradually before the Lunar New Year holidays thanks to promotions and the greater diversity of products than last year.

Businesses would be required to use non-cash payments for trading transactions of any value under a proposal submitted to the Government by the Ho Chi Minh City Tax Department.

Mobile money services promote non-cash payments and help the poor living in mountainous and remote areas access services on the internet, according to the Ministry of Information and Communications.

Bolstering the use of e-payments is a key trend within Industry 4.0 but experts acknowledge that use in Vietnam is yet to be widespread due to a long-held preference for cash and the lack of a specific legal framework for such payments.

Non-cash payments have increased sharply, especially through mobile devices and the internet, according to the State Bank of Vietnam.

While non-cash payments are admittedly on the rise, the cash payment habit and limited development of technology infrastructure are big problems for the country’s non-cash economy, experts have said.

Governor of the State Bank of Vietnam (SBV) Le Minh Hung Hung has asked relevant agencies to help implement non-cash payments for public services, including tax, electricity, water, hospital and education fees.

Smart bus cards are now piloted in Ho Chi Minh City after a launching ceremony was held in the southern metropolis on March 8.

An entrenched cash using habit and safety concerns are the main reasons for people not to switch to non-cash payments, a workshop heard in Ho Chi Minh City on January 15.

The retail banking segment has contributed significantly to banks’ revenue this year.

Deputy Prime Minister Vuong Dinh Hue has asked relevant bodies to report a pilot plan on applying new payment services to Prime Minister before April this year.