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Hanoi is rapidly transforming into a smart city, with a smart payment system playing a crucial role in driving this change. According to Ha Minh Hai, Vice Chairman of the Hanoi People’s Committee, this shift is helping the capital make significant strides in modernisation and urban development.
Vice Chairman Hai highlighted how the adoption of cashless payment solutions in public services, transportation, and social security has been a major catalyst in Hanoi’s digital transformation. The implementation of electronic invoices and the establishment of smart payment streets have enabled the city to make important breakthroughs in developing digital urban areas.
He further noted that non-cash payment methods such as bank cards, e-wallets, QR codes, and mobile payments have brought many benefits to residents, making transactions quicker and more convenient.
The event also underscored the close relationship between smart city development and digital transformation within the banking sector. Pham Tien Dung, Deputy Governor of the State Bank of Vietnam, emphasised the importance of creating an open banking ecosystem to facilitate this progress.
Deputy Governor Dung explained that the State Bank, along with financial institutions and payment service providers, has been working to transform traditional banking models by integrating advanced technology platforms, payment solutions, and data-sharing mechanisms. This digital transformation is not only modernising the financial system but also supporting the development of smart cities like Hanoi.
Nguyen Hoang Long, Deputy General Director of the National Payment Corporation of Vietnam (NAPAS), shared how his organisation is contributing to this effort by providing digital payment methods that align with Hanoi’s smart city goals. NAPAS has been working on enhancing mobile payment options, including fast money transfers and payments for public services.
In addition, the company is focusing on integrating new technology, such as digitising physical credit cards and embedding them into mobile devices, which offers users a more seamless experience. NAPAS is also piloting digital payments for Vinbus electric car tickets and aims to extend this service to other public transportation routes, making it easier for citizens to adopt smart payment methods.
Several participants at the event pointed out that some Vietnamese banks are pioneering new financial services by integrating with external service providers. This innovative approach is opening up new directions for the banking industry, but there are still challenges to overcome.
To promote the development of open banking, participants agreed that it is essential to improve the legal framework, upgrade the technology infrastructure and ensure robust data security and confidentiality. They also highlighted the importance of raising public awareness about digital financial services and building a national database of bank customers to create a secure, sustainable financial ecosystem.
Hanoi’s smart city initiatives are gaining international recognition for the second consecutive year. The capital ranked among the top 100 smartest cities globally, moving up three spots to 97th in 2024. This progress highlights Hanoi’s ongoing efforts to modernise, strengthen its digital infrastructure, and improve public services through innovative solutions.
Looking to the future, Hanoi has set an ambitious goal to become a fully modernised city by 2030, capable of connecting to the broader network of smart cities across the region. This vision includes the continued development of a smart payment system and open banking ecosystem, which will be central to the city’s growth and the improvement of its residents’ quality of life.
The integration of an open banking system is key to Hanoi’s smart city development. By leveraging technological innovations and fostering collaboration between the financial and urban sectors, the city is well-positioned to become a leading model of digital transformation and smart urban living in the years to come.