19-6-2023 (HANOI) Vietnamese consumers have rapidly adopted digital payment methods since the onset of the COVID-19 pandemic, with daily transactions averaging around $40 billion, according to a report by Vietnam News Agency.
Pham Anh Tuan, the head of the Payment Department at the State Bank of Vietnam, stated that the central bank has set a target to make cashless payments account for half of all transactions by 2025.
The shift towards contactless payments has gained momentum as over 75 percent of adults in Vietnam now possess a bank account, as reported by the central bank.
Interbank electronic payment transactions have witnessed a significant increase, rising by 52.8 percent in the first four months of this year compared to the same period last year. Notably, payments made through QR codes have experienced the most substantial growth, with volumes surging by over 161 percent and values increasing by 36 percent, according to the central bank.
Conversely, cash withdrawals from ATMs have declined during the same period, with quantities decreasing by 3.5 percent and values dropping by 5.5 percent, as stated by the central bank.
A survey conducted by Visa, an international payment card provider, revealed that approximately 77 percent of Vietnamese consumers could comfortably manage for three consecutive days without utilizing cash.
In a bid to promote digital payment methods, Vietnam’s central bank has pledged to prioritize the development of a comprehensive, accessible, and secure payment infrastructure across the country. Additionally, the bank is in the process of drafting a new decree to establish a legal framework that supports non-cash payments, according to Tuan.
The Vietnamese government aims to double the value of cashless settlements, reaching a level equivalent to 25 times the country’s gross domestic product by 2025. Furthermore, they anticipate that half of all e-commerce transactions will be conducted without cash.
