In Hanoi, the Transport Payments Asia Pacific Forum 2018 with the theme “Open Payments for Integrated Transport and Retail Ecosystems” took place on June 6-7, 2018. Many representatives from the State Bank of Vietnam (SBV) attended the Forum.
In the opening remarks, Mr. Nghiem Thanh Son, Deputy Director General of the SBV Department of Payment, shared: "In recent years, along with the rapid development of information and communications technology, greater regional and global integration, the payment operations in general and non-cash payments (NCP) in particular in Vietnam, under the directions of the Government and the SBV, have made remarkable progresses in terms of infrastructure, payment technologies, e-payment means and services. Especially, Mr. Son also emphasized that the legal corridor for NCP has been improving, creating favorable conditions for the payment development in the coming time.
Mr. Nghiem Thanh Son – Deputy Director General of SBV Department of Payment delivers the opening speech
For retail payment activities, the SBV has directed the establishment of a unified card switching center, linking the ATM / POS systems. Currently, the SBV is directing the establishment and development of the retail payment system, capable of providing clearing services for transactions through various means and payment channels, serving the needs for payment of various clients, such as businesses, individuals and government agencies, which also supports the offsetting of payment transactions in the fields of transport.
By the end of March 2018, the number of bank cards in circulation in Vietnam reached over 136 million with 78 banks offering online/ Internet payment services and 41 banks providing mobile payment services. The number of individual accounts reached over 70 million… This information provided by the Deputy Director General of the SBV Department of Payment has shown great potentials represented by the existing numbers of the banking sector’s clients for the transport sector.
For smarter, more modern payment services, the SBV has set up a Steering Committee to develop standards for local chip cards in order to study, develop and complete the Set of standards. At the same time, the SBV also issued a Plan to convert from magnetic cards to chip cards. According to the Plan, until December 31st, 2020, the entire banking card market in Vietnam will be completely converted into chip cards.
Apart from the applications in the payment sector of the banking industry, the set of standards is also built with a broad vision, openness, ease of expansion for utilization in other sectors, especially in transport payments.
In addition, the Deputy Director General also shared that the SBV has set up a QR Code Subcommittee to set up standards and regulations for the payment via QR code in Vietnam, with a view to promoting mobile payments.
Ms. Madhu Raghunath - Program Leader for Sustainable Development for the World Bank in Vietnam speaks at the Forum
According to Ms. Madhu Raghunath - Program Leader for Sustainable Development for the World Bank in Vietnam, the transport payment system is an integral part of the financial infrastructure development. Ensuring fair access to opportunities and services for urban migrants is a solution for narrowing the gap between the rich and the poor. Other speakers from the World Bank, Asia Pacific Smart Card Association (APSCA), etc. also expressed positive evaluations that the transport sector has been actively supported by the banking system’s means of payment. At the same time, they also emphasized the importance of transport payments for the transport sector, as it has a strong link with all of the sectors of the economy.
Therefore, Vietnam should have appropriate solutions to improve the efficiency of transport payments, such as promoting the applications of technology, implementing payments for Integrated Transport and Retail Ecosystems in line with the general trend of the world. At the same time, the banking sector needs to ensure security, safety and sustainable development, to promote financial inclusion in Vietnam, to actively contribute to the realization of the directions for non-cash payment development to the year 2020.
Discussion sessions at the Forum
Also at the forum, other speakers, who are experts in the fields of payment technology and transport payments from many countries with developed transportation payment systems like the UK, Japan… shared their experience from the establishment and development of payment systems for public transport systems, as well as the selection of appropriate technologies.
The APSCA, the World Bank in cooperation with the National Payment Corporation of Vietnam (NAPAS) co-organized the Transport Payments Asia Pacific 2018. The Forum received many comments, perspectives from the agencies, functional units in charge of the management and operations of the transport system and infrastructure, the banks, payment companies, mobile payment operators, as well as interested stakeholders from within Vietnam and some countries in Asia-Pacific.
VA