The government wants to promote electronic payments.

Currently, electronic payments in Vietnam only account for about 35% of total means of payment. The State Bank and the Ministry of Industry and Trade and the Ministry of Finance are making efforts to increase this rate.

That is the main content of the Vietnam Electronic Payment Forum 2015 (VEPF2015) with the theme "Cooperation and Connection" organized by the State Bankorganization.

The rate of electronic payments is still low.

Mr. Bui Quang Tien, Director of the Payment Department, State Bank of Vietnam (SBV), said: “Electronic payment still accounts for a very low percentage. In 2014, online shopping activities in Vietnam alone reached 3 billion USD in revenue, but electronic payment only accounted for about 5%. By the end of 2015, the whole country had installed card acceptance machines (POS), but the number of payments was not much.”

Electronic payment - Illustration photo.

Speaking at the forum, Deputy Prime Minister Vu Duc Dam said that e-commerce in Vietnam is developing very quickly, online transactions are increasing significantly every year, but cash payments still account for the majority, with about 65% of total payment methods. Meanwhile, electronic payments are a popular payment method in the world.

“In developed countries, electronic payments account for up to 90% of total payments, helping GDP increase by about 1%,” Mr. Dam emphasized the role of electronic payments.

The Deputy Prime Minister said that in Vietnam, the technical infrastructure conditions for electronic payments are ready, meeting the level of convenience and modernity, and the Government's goal of promoting online payments has been set for a long time, but the habit of using cash for payments has not changed.

To make electronic payments more widely used, there needs to be coordination and connection, aiming to reduce cash payments, creating incentive mechanisms not only through technological solutions and reducing service fees, but also starting with propaganda so that people understand and get used to electronic payments.

The Deputy Prime Minister said: "We need to find every way to make electronic payment habits happen quickly, helping the country develop faster."

Also speaking at the forum, Mr. Tran Tuan Anh, Deputy Minister of Industry and Trade, said that the Government's policies for developing e-commerce are very clear; the conditions for developing electronic payments in e-commerce such as technical infrastructure are very favorable.

“Vietnam and other countries in the region are experiencing double-digit growth in e-commerce. We need to find ways for e-payments to contribute to promoting e-commerce and modernizing the retail service industry in Vietnam to develop in line with its scale and potential,” said Mr. Tuan Anh.

The rate of electronic tax payment is still low.

To promote the development of electronic payments, some government agencies have taken the lead in this activity, such as the Ministry of Finance implementing electronic tax collection.

Mr. Nguyen Dai Tri, Deputy Director General of the General Department of Taxation, said that the General Department of Taxation has provided comprehensive electronic tax services, including registration, declaration and electronic tax payment; organized exchanges and signed cooperation agreements on electronic tax payment with commercial banks, including foreign banks in Vietnam. Electronic tax payment services have contributed to saving time and human resources for businesses, while limiting errors in tax declaration and payment...

“Currently, the tax sector has signed agreements with 43 banks, including 27 domestic banks and 3 foreign banks, to officially provide electronic tax payment services. By the end of November 2015, 92% of businesses had declared and paid taxes electronically, but tax payment was still low,” said Mr. Tri.

Mr. Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), said that applying electronic tax collection contributes to the reform of administrative procedures to support businesses, and is a driving force for businesses to innovate their management models in a more transparent and modern direction to keep up with changing international trends and regulations of state management agencies.

However, from registering to pay taxes electronically to implementation is still a long way, so Mr. Loc proposed solutions such as building trust for businesses, so that they no longer feel difficulty when paying taxes electronically; banks and payment intermediaries need to connect with each other to support businesses in paying taxes electronically; on the business side, the level of information technology needs to be improved...

Mr. Loc said: “VCCI is willing to cooperate with the Ministry of Finance and the State Bank to remove difficulties and obstacles in administrative procedures to help businesses pay taxes electronically quickly and conveniently, contributing to improving competitiveness in the context of strong integration.”

Mr. Nguyen Dai Tri said that there are many reasons for the failure to achieve the expected results in electronic tax payment. The tax sector needs to adjust some procedures and promote more strongly; and businesses need to deploy better infrastructure for electronic payments.

Mr. Nguyen Toan Thang, Deputy Governor of the State Bank of Vietnam, said that in order for businesses and people to accept electronic tax payment, there must be some incentives; for example, when a business achieves a certain amount of revenue through electronic payment, other obligations will be exempted. Card fees will be built very reasonably to both make it transparent and encourage businesses.

Ms. Nguyen Thi Cuc, President of the Vietnam Tax Consulting Association, said that in order for 1.5 million individual business households to participate in electronic tax payment, it is necessary to create convenience for tax payment. For individual business households and house rental households, many people have little understanding of information technology. Therefore, it is possible to allow them to pay taxes via ATM, reducing complicated steps and cumbersome declarations.

According to VOV