Vietnam seeks more non-cash payments for public services
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The Government has set itself a target of collecting 80 percent of tax payments in cities through banks and enabling treasuries in all provinces and cities to have cashless payment systems by 2020.
This has been announced in the Prime Minister’s Decision No 241/QD-TTg on fostering non-cash payments for public services like water and electricity and transactions related to social welfare.
Non-cash payments are expected to be accepted by 70 per cent each of electricity and water suppliers, all universities and colleges, and 50 per cent of hospitals in major cities.
Around 20 per cent of social welfare payments will be made through banks.
According to a State Bank of Vietnam’s report, non-cash payments have been becoming a trend in recent years.
The Government plans to develop modern means of bank payments and accept bank cards at treasuries, hospitals, and schools.
It has instructed banks to offer cards with multiple methods of use so that they can be used to pay directly, through smart phones and others.
It has encouraged co-operation between banks and other organisations to offer more forms of non-cash payments, especially for making payments related to social welfare.
But it has made it clear that these forms should be user-friendly so that even people in rural and remote places without bank accounts can use them.
Questions & Answers
Q.What is the government's target for tax payments collected through banks in cities?
What is the government's target for tax payments collected through banks in cities?
The government aims to collect 80 percent of tax payments in cities through banks. This is part of a broader push to encourage non-cash payments for public services.
Q.Which public service providers are expected to accept non-cash payments, and by what percentage?
Which public service providers are expected to accept non-cash payments, and by what percentage?
Non-cash payments are expected to be accepted by 70 per cent of electricity and water suppliers, all universities and colleges, and 50 per cent of hospitals in major cities.
Q.What measures has the government instructed banks to take to facilitate non-cash payments?
What measures has the government instructed banks to take to facilitate non-cash payments?
The government has instructed banks to offer cards with multiple methods of use, allowing direct payments and smartphone transactions. They are also encouraged to cooperate with other organisations.
Q.How does the government intend to ensure non-cash payment systems are accessible to all citizens, including those without bank accounts?
How does the government intend to ensure non-cash payment systems are accessible to all citizens, including those without bank accounts?
The government has made it clear that these non-cash payment forms should be user-friendly. This ensures accessibility even for people in rural and remote places who do not have bank accounts.
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