Vietnam moves towards non-cash society

The Government should adopt more incentives to promote cashless payment, even in the smallest daily transactions, according to recommendations at a seminar in HCM city on Tuesday.

The seminar on a non-cash society contended that e-payment is the inevitable future as it boosts economic growth and supports Vietnam's financial inclusion strategy.

Non-cash payment has multiple benefits. A cashless society will make transactions more convenient, reduce costs for people and businesses, and improve transparency, helping the fight against corruption and money laundering, said Deputy Prime Minister Vuong Dinh Hue.

According to a Government plan on non-cash payment, the ratio of cash transactions in Vietnam should be reduced to below 10%.

Cash transactions remain highly popular in Vietnam compared to other ASEAN countries as it has low banking penetration. A recent Standard Chartered report says that Vietnam has the lowest bank account ratio of six ASEAN countries at 30.8% of the population aged 15 and up. This ratio is at 49% in Indonesia and 81% in Thailand.

Source: VOV5