The State Bank of Vietnam (SBV) started the new year by establishing cashless payments as a top priority for the country. 

On January 3, SBV issued a resolution – Resolution 01/CT-NHNN – in which Governor Lê Minh Hưng asks financial institutions and units of the SBV to enhance their operations, make sure that macroeconomic indicators are completed and the banking sector performs solidly throughout 2020. 

One of the key priorities set for this year is to promote the use of cashless payments for state-funded services, and ensure the safety and efficiency of payment systems. 

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

The latest resolution issued by the SBV is expected to be in compliance with the government’s Resolution 02, which stipulates that the use of cashless payments is one of the key tasks which will improve business and environmental competitiveness in 2020. 

The government calls upon ministries, ministers and ministry-level agencies in the resolution, to transfer at least 30% of their services online, and provide people and businesses with the opportunity to make their payments digital via different alternatives. 

The SBV, Ministry of Justice and affiliated agencies are expected to complete policies on mobile money services by the end of 2020, in order to assist regulators in foreign transactions. 

The number of ATMs increased 17.3% to over 18,900 by the end of October 2019, the SBV said, while the number of point-of-sale (PoS) machines soared 44.5%, totalling to almost 283,000 and the number of cards in use climbed 15.8% on-year to 98.2 million.

The average trading value through interbank electronic payment system (IBPS) was VNĐ375 trillion (US$17 billion), daily. 

Trading values made via PoS machines increased by 66.3% to VNĐ491 trillion, while those made via mobile phones and online amounted to VNĐ4.26 trillion and VNĐ17.7 trillion, surging 221.2% and 36.6% on-year, respectively.

The SBV is targeting an average inflation of below 4% during 2020, and total credit growth to remain at 14%. It also expects to maintain a stable macroeconomic condition, as well as steady monetary and foreign exchange markets. 

The SBV also called upon its units and financial institutions to ensure loans are only given out to appropriate candidates, in order to avoid bad debts and provide the economy with enough capital channel. 

It is also the responsibility of the banking sector to enhance the quality of administrative procedures, reflecting the government’s efforts to improve the local business climate and national competitiveness.