Paying pensions and benefits without cash: Still difficult - Lang Son Newspaper and Radio and Television Station

Staff of Loc Phat Vietnam Joint Stock Commercial Bank , Lang Son province branch, propagate and mobilize people to receive pensions through bank accounts.

Since August 2024, the provincial Social Insurance has proactively and synchronously deployed solutions to pay monthly pensions and social insurance benefits via personal accounts. Accordingly, the provincial Social Insurance has reviewed all data on personal information and accounts of beneficiaries, and closely coordinated with the banking system to ensure accurate and timely payments. In particular, the provincial Social Insurance has directed district Social Insurance to report and advise the People's Committees at the same level, coordinate with the community digital technology team, the Project 06 implementation team in villages and residential blocks to propagate and guide people to open accounts and access non-cash payment services.

By the end of April 2025, the whole province had 17,477 people receiving monthly pensions and social insurance benefits through their accounts, reaching a rate of 57.8%, an increase of 27.2% over the same period in 2024; reaching the industry's target in 2025 (60%).

However, compared to other provinces and cities, this rate is still low. Although the provincial Social Insurance has a communication plan and on-site guidance, many people, especially in rural, remote and isolated areas, are still hesitant because they are not familiar with using ATMs, do not have the habit of transacting via bank accounts, or do not have ATMs in their living areas...

Mr. Nguyen Duc Tu, Deputy Director of Huu Lung District Social Insurance, informed: To implement the target of mobilizing and encouraging people to receive pensions and social insurance benefits through bank accounts, we have organized campaigns and propaganda conferences in villages and neighborhoods. However, in reality, there are still many difficulties because most of the elderly do not use smartphones, often forget their passwords, and there is no place to withdraw money near their homes... Up to now, the whole district has 3,345 people receiving pensions and social insurance benefits every month, but the rate of people receiving them through ATMs is only 45.3%.

Along with Huu Lung district, in remote areas, these difficulties are increasing, causing people to still choose the traditional method of receiving cash. Mr. Ky Dung Phu, 80 years old, in Bac Xa commune, Dinh Lap district shared: I heard that receiving money via ATM is convenient and quick. But here, if you want to withdraw money, you have to travel nearly 40km to the district center. I am old and do not use a smartphone, so I still receive cash benefits at the commune People's Committee headquarters every month.

Not only Mr. Phu, in the most recent payment (April 2025), the whole province had more than 12,700 people receiving pensions and social insurance benefits in cash with an amount of over 65.8 billion VND. According to Ms. Nguyen Thi Mai Huong, Head of the Planning and Finance Department, Provincial Social Insurance, some of the reasons why beneficiaries are not interested in payment through accounts are due to old age, unfamiliarity with operating machines; long distance from ATMs and the habit of receiving cash. In addition, many border communes, remote areas and isolated areas have not been covered by banking services, which also makes implementation difficult.

Although the Social Insurance and Postal sectors are still making efforts to ensure correct and sufficient cash payments, maintaining two forms of payment at the same time increases administrative and human resource costs, while the long-term policy is still to switch to non-cash payments.

To speed up the roadmap, the provincial Social Insurance continues to advise the Provincial People's Committee to direct districts and cities to actively participate, direct community digital technology teams to support people in opening bank accounts, installing and instructing them on how to use payment applications. It is thought that, along with the efforts of the Social Insurance sector, commercial banks need to study and expand mobile transaction points to disadvantaged communes, areas without ATMs, and expand electronic payment infrastructure in disadvantaged areas. Thereby, creating a habit of using safe, transparent, and civilized financial services, towards the goal of building a modern and effective social security system.

Source: https://baolangson.vn/chi-tra-luong-huu-tro-cap-khong-dung-tien-mat-thuan-nhung-chua-tien-5046755.html