Boom of mobile payment in Vietnam: Deputy PM

Speaking at the opening of Vietnam E-Payment Forum (VEPF) in Hanoi this morning, Deputy Prime Minister Vuong Dinh Hue said that he believed mobile payments would boom in Vietnam like mobile using ten years ago.

At the event (Photo: SGGP)

At the event (Photo: SGGP)

The event with the themed “Mobile Payment - Mobile payment driving cashless payment” is an annual reputable forum where participants can discuss and agree on solutions to promote electronic payment/non-cash payment for the whole market.
It will have three sesions including the global explosion of mobile payment and the current trend in Vietnam, How to develop an ecosystem for mobile payment in Vietnam, and Discussion with Jack Ma – Chairman of Alibaba Group.
During ten years, the appearance of smart phones has changed human communications resulting in changes in distribution networks, design networks and banks’ service designs.
Statistically, Vietnam is one of leading countries in the number of smart mobile users connected with internet. This facilitates mobile payments to create breakthroughs in promoting non-cash payment and financial services in the country.
Deputy Prime Minister Hue said that new payment generates opportunity to get access to financial services conveniently with reasonable costs for millions of low- income people.
The mobile payment helps the low-income community to join in and to directly benefit from the Fourth Industrial Revolution, or Industry 4.0.
In Vietnam, telecommunication firms, banks and Fintech also began providing the service to locals in disadvantaged districts, industrial parks so that laborers can get access to financial services.
The government also wanted to have a boom of mobile payment aiming to reduce the rate of payment in cash lower than 10 percent by 2020.
At present, Vietnam has 140 mobile subscribers over 100 residents and nearly 60 million 3G, 4G subscribers in most districts nationwide. SmartPhone broadband subscribers is scheduled to rise to 80 million by 2020. All are ideal condition to push up mobile payment as well as financial services, electronic commercial services in all regions benefiting firms and groups of people in Vietnam. It is hoped to change Vietnamese people’s habit of paying in cash.
Accordingly, the government has adopted many policies and projects to beef up non-cash payment generally and mobile payment particularly.
Deputy PM Hue stressed that the government pledged to create favorable condition to promote mobile payment in Vietnam by frequently organizing dialogues with providers and users, local and foreign financial organizations to solve difficulties during the process.

Moreover, problems will be solved soon to ensure benefit of residents and firms.
Furthermore, the government will update mechanism to facilitate action programs aiming to advertise mobile payment and financial and commercial services.
In the framework of the event, Jack Ma– Chairman of Alibaba - will talk about experience in promoting e-commerce, mobile payment and suggestions for Vietnam
As per the Department of Payment under the central State Bank of Vietnam, 41 commercial banks have implemented mobile payment service with rising deals. In the first nine months, the number of mobile payment reached 90 million with value of over VND423 trillion.

By HAM YEN – Translated by UYEN PHUONG

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