February 21, 2024

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Vietnam’s Soaring Digital Payments Journey

The current percentage of Vietnamese adults with payment accounts has risen to 77.41%, marking a significant increase from the 31% reported during the period from 2015 to 2017, according to the World Bank.

Image credits: Viettel Money

Remarkable achievements in payment-related activities have been recorded in the recent past. Numerous banks have reported over 90% of transactions are conducted digitally, with some instances even reaching an impressive 98%, State Bank of Vietnam Deputy Governor Pham Tien Dung noted.

He mentioned that in 2019, the clearing house system recorded approximately 700 million transactions, a figure that many could only dream of at that time. However, the numbers skyrocketed, increasing tenfold to reach an impressive 7 billion transactions in 2023.

Furthermore, there has been a substantial annual average increase of 46.48% in internet payment transactions and a notable surge of 90.12% in mobile payment transactions. Notably, QR code payments have experienced a remarkable annual average growth rate of 471.13% since 2018.

Presently, all banks offer mobile services, a significant increase compared to just a few in 2017. Moreover, the scope of transactions has evolved beyond banking alone. Users of banking apps can now book flight tickets, arrange taxi services, and pay utility bills such as power and water bills. This highlights a remarkable level of integration between the banking system and various other economic sectors. ­

Pham Anh Tuan, SBV’s Director of the Payment Department, mentioned that in line with the Party, government, and Prime Minister’s directives to boost digital transformation, the bank has revised and issued regulations to facilitate non-cash payment products and services, ensuring both convenience and transaction safety for clients.

Emphasising the swift expansion of internet, mobile, and QR code payments, he noted that there are currently 85 payment service suppliers offering internet payment services and 52 providing mobile payment services.­­ Nevertheless, Tuan also underscored the escalating significance of payment security in light of the increasing numbers of clients and transactions.

By the end of 2022, SBV and the banking sector had dedicated more than VND 15 trillion (US$ 617.6 million) to digital transformation efforts. Over the past four years, the nation has sustained a remarkable 40% growth rate in digital payments, positioning itself among the globe’s fastest-growing economies in terms of banking digital transformation.

As OpenGov Asia reported, at least 96% of Vietnamese banks have formulated strategies for digital transformation, with 92% successfully implementing internet and mobile application services. Notably, in 2022, the bank deployed Agribank Digital, a comprehensive platform equipped with the functions of a transaction office, including features such as identification, online account opening, registration for electronic banking services, and conducting financial transactions through biometrics.

Meanwhile, Vu Thanh Trung, the Director of Digital Bank at Military Bank (MB), revealed that the bank has been actively implementing a digital transformation strategy since 2018, involving strategic collaboration with a technology giant based in the United States.

SBV said that it is dedicated to adopting a proactive stance, working in collaboration with stakeholders to execute solutions delineated in the cashless payment project spanning from 2021 to 2025. Furthermore, SBV will engage in partnerships concerning the digital transformation plan and Project 06 within the banking sector, with a specific focus on enhancing the legal framework to streamline digital transformation. This includes policies addressing data connection and utilisation.

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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.

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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.

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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.

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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. 

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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.

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