Search
Close this search box.

We are creating some awesome events for you. Kindly bear with us.

Vietnam’s Surge in Electronic and Cashless Payments

Getting your Trinity Audio player ready...

During the first half of this year, Vietnam experienced notable surges in electronic and cashless payments, witnessing a remarkable 76% increase in volume and a 1.79% rise in value for internet transactions.

Mobile phone payments increased by 65% in volume and 77% in value, while QR code transactions rose by 152% in volume and 301% in value. Meanwhile, transactions conducted through ATMs experienced a decline, with a 4% decrease in volume and a 6% reduction in value.

To support digitisation, the government has introduced the National Digital Transformation Programme and the State Bank has unveiled its own digital transformation plan for the banking industry. These initiatives present opportunities for banks to revamp their business models, enhance financial services, and adjust to the evolving landscape by providing a wide array of products and services that cater to the diverse needs of their customers.

During a recent workshop jointly organised by the National Innovation Centre and a private entity, Nguyen Quoc Hung, the Deputy Chairman and Secretary General of the Vietnam Banks Association revealed that 96 banks and credit institutions are working on digital transformation strategies. Furthermore, 92% of these banks have already developed internet and mobile applications to enhance and optimise their services for customers. This reflects the growing commitment of the banking sector in Vietnam towards embracing digital innovation and providing more convenient and efficient banking solutions to their clients.

Hung noted that these figures demonstrate a strong inclination towardelectronic payments. Banks and payment intermediaries are connected in real-time transactions, with an average daily value reaching approximately VND 900,000 trillion (US$ 40 billion), encompassing over 8 million transactions per day.

Additionally, it has been reported that more than 70% of adults in Vietnam now possess a bank account through digital channels. The cost-to-revenue ratio for banks has experienced a notable decline of approximately 30%. This reduction in the cost-to-revenue ratio signifies substantial cost savings for the banks, which can lead to improved operational efficiency and increased profitability.

As per a 2023 survey on digital transformation, Vietnam has secured the second position among the ten Southeast Asian countries in terms of the extent of digital transformation implemented to enhance customer experience and engagement within the financial sector, behind only Singapore.

Last month, OpenGov Asia reported that the State Bank of Vietnam (SBV) has set a target for cashless payments to constitute 50% of all transactions by 2025. The primary focus of the SBV is to establish a strong and accessible payment infrastructure across the entire country, with the objective of making digital payments the preferred mode of transaction. To facilitate this goal, the central bank is drafting a new decree to create a legal framework to promote non-cash payments.

At a seminar held as part of Cashless Day 2023, Pham Tien Dung, the Deputy Governor of SBV, emphasised the crucial role of data connectivity in fully unlocking the potential of cashless payments. He highlighted that by fostering collaborative data sharing across the entire ecosystem, the SBV can create a payment experience that is not only secure but also highly convenient for customers. Furthermore, this approach actively contributes to financial inclusion efforts and effectively promotes overall economic growth. SBV intends to invest in infrastructure and drive innovation to establish an inclusive payment ecosystem that prioritises accessibility, convenience, and security for all users.

PARTNER

Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private company, Qlik offers real-time data integration and analytics solutions, powered by Qlik Cloud, to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik serves more than 38,000 active customers in over 100 countries.

PARTNER

CTC Global Singapore, a premier end-to-end IT solutions provider, is a fully owned subsidiary of ITOCHU Techno-Solutions Corporation (CTC) and ITOCHU Corporation.

Since 1972, CTC has established itself as one of the country’s top IT solutions providers. With 50 years of experience, headed by an experienced management team and staffed by over 200 qualified IT professionals, we support organizations with integrated IT solutions expertise in Autonomous IT, Cyber Security, Digital Transformation, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

Well-known for our strengths in system integration and consultation, CTC Global proves to be the preferred IT outsourcing destination for organizations all over Singapore today.

PARTNER

Planview has one mission: to build the future of connected work. Our solutions enable organizations to connect the business from ideas to impact, empowering companies to accelerate the achievement of what matters most. Planview’s full spectrum of Portfolio Management and Work Management solutions creates an organizational focus on the strategic outcomes that matter and empowers teams to deliver their best work, no matter how they work. The comprehensive Planview platform and enterprise success model enables customers to deliver innovative, competitive products, services, and customer experiences. Headquartered in Austin, Texas, with locations around the world, Planview has more than 1,300 employees supporting 4,500 customers and 2.6 million users worldwide. For more information, visit www.planview.com.

SUPPORTING ORGANISATION

SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.

PARTNER

HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 

PARTNER

IBM is a leading global hybrid cloud and AI, and business services provider. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service.