Avoid paying for electricity, water, and tuition fees in urban areas with cash.
100% of schools, hospitals, electricity companies, water supply and drainage companies, environmental sanitation companies, etc., in urban areas must coordinate with banks to collect tuition fees, hospital fees, and electricity bills using cashless payment methods.
The government has just issued Resolution 02, which aims to transform the business environment, enhance competitiveness, and increase labor productivity. One of the key aspects of this Resolution is the acceleration of cashless payments.
Accordingly, the Chairpersons of the People's Committees at the provincial and city levels should direct 100% of schools, hospitals, electricity companies, water supply and drainage companies, environmental sanitation companies, telecommunications companies, and postal services in urban areas to coordinate with banks and intermediary payment service providers to collect tuition fees, hospital fees, electricity bills, etc., using cashless payment methods. Priority should be given to mobile payment solutions and payments via card acceptance devices.
Cashless payments for living expenses were mandated by the government before December 2019.
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The Vietnam Electricity Corporation also needs to direct electricity companies to coordinate with banks and payment service providers to collect electricity bills through cashless payment methods, encouraging electricity users to pay using electronic and mobile solutions. The goal for 2019 is to double the number of electricity users paying electronically.
Regarding the operation of e-wallets, the Government requires the State Bank of Vietnam to report on a plan to allow cash deposits into e-wallets without going through bank payment accounts before the third quarter of 2019. This includes determining the limit on the amount of money deposited into e-wallets and the monthly transaction value. Commercial banks and payment intermediaries are required to adopt the QR Code standard.
The State Bank of Vietnam also needs to coordinate with the Ministry of Finance to list and publicly disclose a detailed list of transactions that are required to be settled through banks, and to research and propose to the Government amendments to regulations to encourage cashless payments for real estate transactions.
According to World Bank statistics from July 2018, Vietnam had the lowest rate of non-cash transactions in the region, at only 4.9%, compared to 26.1% in China and 59.7% in Thailand.
Electronic tax filing has been implemented since 2014, with 95% of businesses registered. Actual revenue collected through this channel has increased from 55% to 70% of the total budget revenue. However, many businesses still prefer to pay in person rather than through bank accounts and only pay at the last minute.
Similarly, regarding electricity bill collection, the policy has been in place for a long time, but according to a report by the Electricity Corporation, only over 4.5 million customers have paid through banks and intermediary organizations, accounting for less than 20% of electricity users.
In particular, in rural and remote areas, the majority of people do not have access to modern payment services and facilities.
