State Bank sets cashless payments as top priority for 2020

A customer conducts a cashless transaction at a store. The State Bank of Vietnam (SBV) is urging businesses and ministries to boost the use of cashless payments this year. (Photo: baochinhphu.vn)

In SBV’s Resolution 01/CT-NHNN, issued on January 3, Governor Le Minh Hung asked financial institutions and SBV units to improve their performance, ensure macroeconomic indicators are accomplished and the banking sector operates healthily in 2020.

Among key tasks set for 2020 is to boost the use of cashless payments, as the SBV and the Ministry of Information and Communications are working to launch mobile money services this year.

In the resolution, banks are asked to encourage the use of cashless payments for government-funded services and assure the payment system functions properly, securely and stably.

“(Banks) must improve and upgrade their technology and telecommunication facilities, develop digital banking services and assure cybersecurity in their activities,” the resolution stated.

The SBV’s latest resolution is expected to comply with the Government’s Resolution 02, which puts the use of cashless payment among key tasks to improve the business environment and national competitiveness in 2020.

In the resolution, the Government requests ministries, ministers and ministry-level agencies to put at least 30 percent of their services online, and allow people and enterprises to make cashless payments by different methods.

By the end of 2020, the SBV, Ministry of Justice and related agencies must complete policies on mobile money services to help regulators deal with cross-border transactions.

According to the SBV, the number of ATMs totalled more than 18,900 at the end of October 2019, the number of point-of-sale (PoS) machines was nearly 283,000 and the number of cards in circulation was 98.2 million.

The figures were up 17.3 percent, 44.5 percent and 15.8 percent on-year, respectively.

Average trading value via interbank electronic payment system (IBPS) was 375 trillion VND (17 billion USD) per day.

Trading values made via PoS machines, mobile phones and online were 491 trillion VND, 4.26 trillion VND and 17.7 trillion VND, respectively.

The three figures were up 66.3 percent, 221.2 percent and 36.6 percent on-year, respectively.

In 2020, the SBV targets to keep average inflation below 4 percent and total credit growth at 14 percent and maintain a stable macroeconomic condition, as well as stable monetary and foreign exchange markets.

The SBV also asked its units and financial institutions to make sure loans are provided to the right borrowers, avoid bad debts and create a sufficient capital channel for the economy.

The banking sector must also improve the quality of administrative procedures in line with the Government’s attempt to improve the domestic business environment and national competitiveness.