Non-cash payment activities in the rural, remote areas are currently facing many difficulties, obstacles and barriers. In order to enhance the application of the modern payment means and models which are easy to use and suitable to rural areas, especially the remote and isolated areas, on September 28, 2018 morning in Hanoi, Vietnam Farmer’s Union (VNFU), represented by Nong thon ngay nay (Countryside Today) newspaper, in collaboration with the State Bank of Vietnam (SBV) and other relevant ministries and agencies, organized a workshop on "Promoting non-cash payment in rural, remote areas" to jointly evaluate the current situation and come up with possible solutions.
Attending the workshop were SBV Deputy Governor Nguyen Kim Anh; VNFU Vice Chairman Pham Tien Nam; representatives of the Ministry of Information and Communication; leaders of the SBV departments; and representatives from other units such as: Viettel Military Industry and Telecoms Group of Vietnam (Viettel), the National Payment Corporation of Vietnam (NAPAS), several commercial banks and payment service intermediaries.
The workshop assessed the current non-cash payment status in the rural, remote areas; discussed and shared experience and practices in the world, and the actual implementation of the different entities; identified problems as well as difficulties, obstacles and specific barriers; and proposed measures to promote the application of the modern payment means and models which are easy to use and suitable to rural areas, especially the remote and isolated areas, contributing to the achievement of the objectives of the Scheme for the development of Non-Cash Payments in Vietnam during 2016 – 2020 issued with the Prime Minister's Decision No. 2545/QD-TTg, and the objectives of the National Financial Inclusion Strategy.
Speaking at the workshop, SBV Deputy Governor Nguyen Kim Anh emphasized: “Implementing the policy of developing non-cash payment approved by the Party and the Government, the SBV has actively coordinated closely with the line ministries and agencies to direct the implementation; with the shared efforts of the commercial banks, the foreign banks’ branches, the non-cash payment activities in Vietnam have been continuously developing, the payment system has been modernized, the legal basis has been refined, the payment methods, technical procedures and the service manner have been improved, especially there has been a breakthrough in the development of the modern e-banking services to meet the increasing demands of the society and adapt to the process of international economic integration."
Currently, the legal corridor for non-cash payment activities has been established and been constantly improved; the system of legal documents from the Law, the Decrees to the Circulars has been issued, creating a consistent platform to meet the requirements of state management in the field of payments; promoting the application of technology in the development of non-cash payments; enhancing the management of cash payments and ensuring the security and safety in the payment activities.
SBV Deputy Governor Nguyen Kim Anh speaks at the workshop
In parallel with the Scheme on promoting non-cash payments in general, the Government is also interested in directing the development of non-cash payments in the rural, remote areas. In Decision No. 2545/QD-TTg dated December 30th, 2016 approving the Scheme for the development of Non-Cash Payments in Vietnam during 2016 – 2020, the Prime Minister also identified the target “Focusing on developing a number of new and modern payment means and methods to support the rural, remote and isolated areas; increasing the number of people with access to payment services, raising the proportion of people aged 15 and above with bank accounts to at least 70% by the end of 2020 "; at the same time, specific solutions should be put in place to promote the development of non-cash payment in the rural, remote areas.
VNFU Vice Chairman Pham Tien Nam speaks at the worshop
Deputy Governor Nguyen Kim Anh said: "The SBV has developed and implemented a Pilot Project to develop some forms of non-cash payments in the rural, remote areas; accordingly, the SBV has allowed the pilot roll-out of some payment service models based on the cooperation between the commercial banks and other organizations through the utilization of the modern , but easy-to-use, payment methods which are suitable for the rural areas to expand and promote non-cash payments in the rural, remote and isolated areas and islands. In addition, the Industrial Revolution 4.0 has created many opportunities to develop modern, easy-to-use, low-cost payment services suitable for the rural areas; the SBV has been cooperating with the relevant entities to propose policies for the development of the banking sector in line with the Industrial Revolution 4.0. At the same time, the SBV has also been coordinating with the line ministries and agencies, with the assistance of the international organizations, to focus on developing the National Financial Inclusion Strategy in Vietnam in order to enhance the accessibility and utilization of financial services by the people and businesses, especially in the rural, remote and isolated areas and islands; in which the field of non-cash payments in the rural areas plays a very important role...”
Speakers present at the conference
The infrastructure and technology for non-cash payments continue to be invested, improved and promoted effectively; Ensuring the security and safety of electronic payments has received lots of attention and has been strengthened; the number of Automated Teller Machines (ATMs), Points of Sale (POS) devices has continued to increase.
The means of payment and payment services have been strongly developed and diversified, especially the new and modern payment facilities and services with the application of information technology and telecommunications.
Many commercial banks, IT and telecommunication companies in Vietnam have researched, cooperated and introduced new and modern technologies in payment on mobile devices, with the application of fingerprint authentication, facial recognition, biometrics, QR Code use, Tokenization, non-contact payment, mPOS technology.
The SBV has also developed and implemented financial education programs to enhance the accessibility to financial services, reduce risks for users and minimize social costs.
Mrs. Le Thi Thuy Sen – Deputy Director General of the Communication Department, shares about the financial education programs of the SBV to enhance accessibility to financial services for people.
A roundtable discussion was held between representatives of the state management agencies and the banks, intermediary payment service providers, and direct discussions with attending farmers, agricultural enterprises.
The assessments, proposals for solutions to promote the development of non-cash payments in the rural areas at this workshop are important for the SBV to study and improve the policy mechanism to promote non-cash payments in general and promote non-cash payments in the rural, remote areas in particular; directing payment service providers and intermediaries to continue to invest and apply vigorously the achievements of the Industrial Revolution 4.0 into the field of payment, providing modern payment facilities and models that are easy-to-use and suitable to the rural conditions.
VA