On December 30, 2016, the PM has approved a Scheme for the development of non-cash payments in Viet Nam in the 2016-2020 period, with a target of reducing the ratio of cash transactions to below 10%.
The project aims to accelerate e-commerce transactions and to implement the Master Scheme on E-commerce Development in the 2016-2020 period.
The Government laid out a number of specific objectives: by 2020 the ratio of cash to total liquidity will be not higher than 10%; accelerating card payments via posts of sale (POS's); increasing the number and the amount of card payment transactions via POS's. By 2020, 300,000 POS's must be installed to serve 200 million transactions a year. Boosting e–payments for the period 2016 – 2020 with 100% of supermarkets, shopping centers and distribution agents having POS and allowing customers to use non-cash payments for their bills; 70% of service providers of electricity, water, telecommunication services accepting non cash payments; 50% of individuals and households in metropolitan cities using non-cash payments; focusing on developing modern payment equipment and systems serving rural and remote areas in order to accelerate financial inclusion; increasing the number of citizens able to access payment services, and increasing the ratio of people from the age of 15 opening accounts with a bank to at least 70% by the end of 2020.
Ultimately, 100% of supermarkets, commercial centers, and modern distribution sites will allow e-commerce transactions. Half of all individuals and households will utilise non-cash transactions.
New and modern means and methods of payment will be developed in rural and more remote areas. Financial inclusion will be promoted. At least 70% of over 15-year-olds will have bank accounts by 2020.
Accelerating the development and application of modern payment and remittance means in a manner appropriate to rural conditions - such as mobile banking and digital payment services - in order to promote non-cash payments in rural and remote areas and island and non-bank account holders, on the basis of using the available network of credit institutions and post office networks, and intermediary payment systems and non-bank organizations, along with boosting an inclusive finance system.
Regarding electronic payments for the public administration sector, the Scheme stated the importance of accelerating electronic payments in the Government and public sectors. Specifically, it is essential to link the solutions to the exchange of information between the financial industry, including the State Treasury, General Tax Department and General Custom Department, with the banking system in order to better meet the demands of collaboration in budget collection activities via electronic tools, especially in collecting and paying taxes, and creating favorable conditions for the government, enterprises and individuals.
Accelerating the framework to boost e-commerce payment
The project aims to research administrative and economic measures in support the development of e-commerce activities. It also looks to issue certain mechanisms and policies to promote non-cash transactions; strengthen the control of payment and invoice issuance to prevent tax evasion; and issue legal regulation on electric records.
In addition, the project also aims to develop non-cash transactions in rural areas and e-commerce payment for public administration services.
The Government assigned the State Bank of Vietnam to take a lead and collaborate with the relevant ministries and industries to conduct and supervise the implementation, report on it's implementation and propose necessary solutions to the Prime Minister for the successful completion of this important Scheme.
MH