State Treasury widely deploys automatic payment service

By May 8, 2023, the State Treasury had completed the signing of two agreements between the State Treasury and the Vietnam Joint Stock Commercial Bank for Industry and Trade ( Vietinbank ) on automatic payment of electricity and water bills and between the State Treasury and the Telecommunication Services Corporation (VNPT Vinaphone) on automatic payment of telecommunication service fees of public service providers. The State Treasury has upgraded and supplemented the Data Exchange Portal (https://vst.mof.gov.vn) on the online public service system (DVCTT) to meet the automatic payment process for electricity, water, and telecommunications.

Accordingly, from May 4, 2023, on the Data Exchange Portal, agencies and units can authorize the State Treasury at the transaction location to automatically deduct accounts for payment transactions: (1) Electricity and water expenses with electricity and water service providers that have implemented electricity and water bill collection services with VietinBank; (2) Telecommunications service fees including: Fixed telephone services, monthly fixed internet access services and postpaid mobile phone services under the name of the service provider (the above services do not include prepaid service fees) with telecommunications services provided by VNPT Vinaphone.

After the public service providers authorize automatic payment of electricity, water, and telecommunications to the State Treasury where the transactions take place, the units do not have to send monthly payment requests for electricity, water, and telecommunications expenses through the State Treasury's public service system. The authorization is very simple but brings great benefits, contributing to promoting administrative procedure reform, accelerating the completion of digital transformation, transparency in the process of using the State budget, and enhancing the reputation of units in the public sector;

Save costs and time for customers

Automatic payment of electricity, water, and telecommunication services helps increase convenience in payment, creating favorable conditions for service providers through the State Treasury automatically deducting debt from service providers' accounts to pay expenses based on agreements with Vietnam Telecommunications Services Corporation (VNPT) and Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) - where the State Treasury opens payment accounts and payment authorization documents of service providers.

Accordingly, instead of having to pay monthly for electricity, water, and telecommunications services, the service providers now only have to sign a one-time authorization document to pay to the State Treasury. The monthly service fee payment will be automatically billed by the State Treasury (the authorized party), and the service providers will be notified of the debt according to the notification of the service providers.

Although this is a new form of payment, through synthesis and evaluation from all parties, it shows that: Automatic payment of electricity, water and telecommunication service expenses has brought many benefits. Specifically, the public service provider reduces costs, time and administrative procedures because it does not have to send payment requests via public service every month. State Treasury officials save time processing work, thereby focusing on controlling high-risk expenses, helping to improve the efficiency of State Budget management through the State Treasury. The State Treasury reduces payment fees to be paid to commercial banks. Service providers save costs and time in organizing payment collection.

Towards a digital treasury

Along with the deployment of utilities on public service delivery, aiming at the goal of digital treasury, the automatic payment process for electricity, water, and telecommunications services has shown clear effectiveness, contributing to shortening the time and process of spending the State budget of public service providers, making timely payments to service providers, bringing many benefits to public service providers.

When implementing this process, public service providers only need to access the Treasury Public Service Portal to register an authorization file for the Treasury to pay for electricity, water, and telecommunications services; look up service provider invoices; and look up Treasury notices.

Thereby, gradually improving the quality of the State Treasury's operations with the goal of moving towards a service-oriented administration, focusing on customers, modernizing business processes towards streamlining, effectiveness, safety and efficiency.

Make the process of using the state budget transparent and save operating costs.

When implementing automatic payments, it means that all issues related to the automatic payment process are specific, clear, and transparent. Transparency in the use of the State budget is the leading factor determining the effectiveness of the use of the State budget and the reputation of the units using the State budget in the public sector.

The automatic debiting of the accounts of the service providers to transfer to the service providers will help the expenses to be paid promptly, the providers do not need to wait for the unit to prepare the documents, send them to the State Treasury to make the payment. In addition, the cash flow from the business activities of the provider will be ensured smoothly, increasing the efficiency of capital use, not incurring costs for the process of debt monitoring, urging payment... is the biggest benefit that the State Treasury brings to the service providers.

It can be said that the implementation of automatic payment services for electricity, water, and telecommunications services is an important step in realizing the goal of building a digital treasury according to the State Treasury Development Strategy to 2030 approved by the Prime Minister . This is also an important opening for proactive and automatic payment methods in the future, changing the appearance of the State Treasury, gradually shifting from a management model to a service model and requiring the participation and implementation interest of public service providers.

Thu Thuy - Phuong Thuy - Thanh Tam

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