Deputy PM encourages digital payments in lieu of cash

Certainly Deputy PM Dam said the move could assist in cracking down on ‘black money’ or in other words assist in reducing income illegally obtained or not properly declared for tax purposes.

Some economists, he said have estimated that increasing the use of e-payments nationwide could actually benefit the gross national product (GNP) by as much as 1%.

He went on to say the government is evaluating a broader strategy to discourage the use of cash and clamp down on Vietnam’s bustling parallel economy that operates outside the legitimate financial system.

E-transactions include those made through debit and credit cards, mobile wallets, apps, net banking, electronic clearing services, national electronic fund transfers and immediate payment service (IMPS).

He suggested that utility service providers such as electricity companies and telecom operators could offer a discount if subscribers paid their bills electronically to provide an incentive to encourage the use of e-transactions.

However, Dinh Thi My Loan, chairwoman of the Vietnam Retailers Association emphasised consumer habits are difficult to change and she expects the use of cash to remain high throughout the nation for the foreseeable future.

Citing statistics from the Bank Card Association of Vietnam, she said 90% of revenues from card payment are transacted at ATM machines. Of the figure, revenues from cash withdrawal made up more than 85% and bank transfers just 14%.

Deputy Governor Nguyen Toan Thang of the State Bank of Vietnam (SBV) in turn said banks have been actively involved in creating incentives for taxpayers to remit their tax remittances via e-commerce.

He also pointed out the SBV is currently working with the Ministry of Finance to implement policies and procedures to create more favourable conditions for the use of e-transactions in the tax collection process.