Vietnam has a high percentage of internet and social network users, but the proportion of people making payments via internet remains very modest.
“It’s about time to question why Vietnam has a high number of internet and Facebook users, but it still cannot popularize non-cash payment methods,” said Dang Khac Loi, deputy head of the Press Agency at a workshop held by the State Bank in late September.
“In China, everyone, including street vendors and small retailers, all use online payments. Why can’t this be done in Vietnam?” Loi said.
Most Vietnamese have the habit of using cash, especially in rural areas.
Deputy chair of the Vietnam Farmers’ Association Pham Tien Nam cited a report as saying that 40 percent of Vietnamese have bank accounts, but 90 percent pay for goods they buy every day in cash.
99 percent of people pay in cash for goods and services costing less than VND100,000, and 85 percent of transactions at ATMs are cash withdrawals.
The figures show that the implementation of the non-cash payment development plan in Vietnam will face big challenges.
In Vietnam, electronic tax payments kicked off in 2014 and 95 percent of businesses have registered to pay tax online.
A report of the taxation body showed that the proportion of online tax collection has increased from 55 percent to 70 percent of total collections. However, businesses still want to pay tax in cash directly to tax officers and only pay when deadlines come.
The payment for electricity bills was activated a long time ago, but according to the Electricity of Vietnam, to date, only 4.5 million households, or 20 percent of total clients, make payment via banks and intermediary institutions.
In rural and remote areas, people still cannot access modern payment facilities and services.
Nam believes that it will take time to change a habit which has existed for many years.
In addition, people prefer cash payment because this ensures privacy. The payment transactions in cash do not leave traces, and personal information is not exposed to third parties.
However, Vietnam has made progress in popularizing non-cash payments to increase financial service access, and minimize risks and costs.
A Visa report in July 2018 showed that the number of e-payment transactions had increased by 44 percent a month since July 2017 and the total value of purchases on the Visa network increased by 43 percent.
Under the national plan on developing non-cash payment, at least 70 percent of people aged 15 and higher would have bank accounts by the end of 2020, and the cash payment proportion would fall to below 10 percent.
According to a report on Vietnamnet
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