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

Vietnamese government promotes digital payments

Image credit: Ministry of Information and Communications

The government has been promoting mobile money to reduce social contact and cash circulation.

Soon after COVID-19 broke out in Vietnam, the government urged appropriate agencies to work on a project to popularise mobile money, a method of using telecommunication accounts to make payments for small-value transactions.

In early March, the Prime Minister requested that the State Bank of Vietnam (SBV) submit a pilot plan on using mobile money. At the regular government meeting in April, he assigned the Ministry of Information and Communication (MIC) to join forces with SBV to put mobile money into use to reduce cash circulation.

According to the Global System for Mobile Communications (GSMA), mobile money was present in 90 countries by 2018 and 95 countries by the end of 2019 with 1.04 billion registered accounts, an increase of 10% over the year before.

A press release noted that in Vietnam, mobile money has great potential to develop in the future. As of the end of 2019, Vietnam had 129.5 million mobile subscribers, according to the General Statistics Office (GSO), including 61.3 million 3G and 4G subscribers.

With 43.7 million smartphone users, accounting for 45% of the population, Vietnam is at the region’s average level; higher than India, the Philippines, Indonesia, and Thailand.

Further, with 68.5 million users, or 70.3%, Vietnam is among the countries with the highest percentage of internet users.

Mobile money would significantly contribute to accelerating cashless payments. Cash in circulation still accounts for 20% of the country’s gross domestic product (GDP).

Mobile transactions are expected to increase by 400% by 2025, as OpenGov reported earlier. The country expects to see a 50% growth in new accounts by the top eight banks, using intelligent automation in account origination. Also, 25% of banks in Vietnam would actively pursue modern digital core platforms.

The top two priorities among the eight biggest banks of Vietnam to 2025 would be core banking and payments systems, the report pointed out.

There is still a lot of room to develop non-cash payment modes in Vietnam. Only 63% of Vietnamese adults (over 15 years old) have bank accounts, lower than the 80% in China and 70% in the Asia Pacific, the press release said.

The government wants to cut cash payment proportions to 10% by the end of 2020 from 11.3% last year.

In the context of the high ratio of cash in circulation to GDP, at 20%, much higher than other regional countries, mobile money is believed to be one of the most popular solutions to non-cash payment.

People are getting used to online transactions which have outstanding advantages, including convenience, transparency, and low risks.

However, industry analysts have said that there are risks when putting mobile money into use. Mobile money accounts can be identified with mobile phone subscription numbers at telecoms.

Meanwhile, the existence of rubbish SIM cards may turn this into a ‘money washing’ channel if it cannot be controlled strictly, the release added. A rubbish SIM card refers to SIM cards that are thrown away after one-time use because the users do not intend to keep the subscriber numbers.

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.

Send this to a friend