Cashless payments would not only increase of the circulation of capital, it would also help boost the internet economy, said deputy prime minister Vu Duc Dam.
He was speaking at the E-payment Eco-system Development Forum 2019 under theme “Motivation by Chip Technology” in Hanoi on Tuesday.
The forum was co-organised by Thoi bao Kinh te Vietnam (Vietnam Economic Times) and the National Payment Corporation of Vietnam (NAPAS).
The Southeast Asian economy was dynamic with an internet economy of $100 billion that was expected to triple in the next five years,” said Dam.
In order to promote the internet economy, a consensus was needed between State agencies, enterprises and banks, he said.
Infrastructure must be changed at a cost but it would be worthwhile for economic efficiency in the long run, he said.
Technology had to be promoted to integrate information, including personal, health insurance and banking data, said Dam.
Deputy prime minister Vu Duc Dam also noted that the Politburo and government had adopted resolutions, strategies, directives and decisions on how to utilise Industry 4.0.
Specifically, the proportion of cash payments would be below 10 per cent by the end of next year, and below eight per cent by 2025.
The government has already instructed companies to collect cashless payments for tax, insurance, telecommunications and electricity.
The government also decided to make education and health targets for non-cash payments earlier this year, the deputy prime minister emphasized.
Dao Nguyen Cat, editor-in-chief of Vietnam Economic Times, said the government had repeated that the country must constantly strive to catch up with Industry 4.0.
Science and technology, the Internet of Things, artificial intelligence, cloud computing and Big Data would be an opportunity for poor countries and developing economies like Vietnam to embrace and change their destiny, said Cat.
Digital economy and e-commerce were an inevitable trend of the times.
The pressure to innovate to update new technologies in banking and financial services has pushed the banking system as well as financial and non-financial organisations in Vietnam.
The State Bank of Vietnam (SBV) planned to build, amend and supplement the legal corridor for banking and payment activities to meet the requirements of new business models and products and services on IT platforms, with a focus on digital banking and payments, said SBV’s deputy governor, Nguyen Kim Anh.
Sharing the achievements of implementing non-cash payments at the Ministry of Health, Tran Quy Tuong, director of the Electronic Health Administration, said 15 banks supported payment for medical examinations and treatment with QR codes in hospitals.
The number of patients paying for medical fees without cash accounted for 35 per cent of total transactions, he said.
Also at the event, the Vietnam National Petroleum Group (Petrolimex) and Napas signed a memorandum of understanding to promote non-cash payments in Vietnam.
Petrolimex and Napas will focus on optimising the experience of Petrolimex’s customers through domestic contact and contactless cards via Napas and payment by QR codes issued by the SBV via mobile applications, payment intermediaries and electronic wallets.
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