The digital economy is accelerating thanks to cashless payments.

Cashless payments are no longer a secondary option but have become an essential component of Vietnam's digital economy. With a strong pace of digitalization, along with significant improvements in payment infrastructure and supportive policies from the central to local levels, Vietnam is becoming a bright spot in the region for the development of digital payments.

Digital payments are shaping the digital economy .

According to the State Bank of Vietnam (SBV), as of the end of 2024, the country recorded more than 204.5 million individual payment accounts, 154.1 million bank cards in circulation, and 86.97% of adults had bank accounts.

On average, the interbank electronic payment system processes approximately 820 trillion VND per day.

In addition, the interbank electronic payment system processes an average of 820 trillion VND per day, equivalent to over 40 million USD, with approximately 30 million transactions per day; simultaneously, the electronic financial switching and clearing system also processes 26 million transactions per day. These indicators show that Vietnam's digital payment platform is rapidly expanding in scale and coverage.

Beyond just numbers, cashless payments also bring tangible economic benefits: Businesses optimize cash flow, reduce cash storage costs, improve management capabilities, and increase transparency of capital flows. Especially in e-commerce, digital payment methods help the industry achieve growth rates of 16-30% per year, contributing 18.7% to the national GDP.

Ho Chi Minh City is a pioneer in integrating digital payments into all sectors, from public services, education , and healthcare to transportation and commerce. According to Vice Chairman of the Ho Chi Minh City People's Committee Nguyen Van Dung, digital skills training programs for small traders in traditional markets such as Ben Thanh and Tan Dinh have helped increase revenue by 25% after adopting cashless payment methods. The city also aims to reduce cash transactions in traditional markets by 50% by 2027.

Furthermore, Vietnam is one of the first countries in Southeast Asia to implement cross-border retail payment connectivity via QR code with Thailand, Laos, and Cambodia, helping to increase international transactions by 15% and strongly supporting the tourism and trade sectors.

NAPAS and Highlands Coffee have partnered to launch a payment service using QR codes.
VietQRPAY is available at stores nationwide.

From July 1, 2024, Vietnam also implemented mandatory biometric authentication for all financial transactions. To date, more than 110.8 million individual records and 711,000 organizational records have been verified, laying the groundwork for a safer and more reliable payment system.

Deputy Prime Minister Ho Duc Phoc affirmed: "Cashless payments not only help shorten transaction times but also make a significant contribution to the transparency of money flows, economic control, and thereby promote sustainable growth."

Although cashless payments have made progress, challenges remain, such as the high rate of cash-on-delivery (COD) payments in e-commerce (77.5%), reflecting consumer apprehension. Therefore, many believe that the major challenge now is how to build trust in digital payment systems, especially in the context of increasingly sophisticated cybercrime.

Expanding payment solutions

Despite impressive progress, Vietnam's cashless payment ecosystem still needs more solutions to develop sustainably, spread widely, and penetrate deeper into socio-economic life. Three prominent issues that need to be addressed are uneven digital infrastructure, incomplete cybersecurity, and the continued prevalence of cash usage, especially in rural and underdeveloped areas.

To ensure cashless payments become not just a trend or habit, but the primary payment solution of the future, Ho Chi Minh City has implemented numerous measures. According to Vice Chairman Nguyen Van Dung, the city has promoted digital payments across the entire area, from public services, administration, education, and healthcare to transportation and commerce. Currently, the city is intensifying communication efforts through platforms like TikTok and Zalo, and organizing seminars and workshops on digital finance skills in traditional markets, residential areas, and suburban areas where the habit of using cash is still prevalent.

Most people pay without using cash when shopping.

Furthermore, Ho Chi Minh City also proposed that the Government promptly finalize legal documents, especially regulations on personal data security, to synchronize with the amended Law on Credit Institutions of 2024 and Decree 52; at the same time, coordination between ministries and agencies is needed to connect and integrate data, building an inter-sectoral smart payment ecosystem.

At the national level, the State Bank of Vietnam and the Ministry of Public Security are simultaneously implementing technology projects to control risks. Notably, a system is being developed to warn users about suspected fraudulent accounts before transactions, helping them reduce the risk of losing money due to high-tech scams by 40%. In addition, from July 1, 2025, businesses will be required to use biometric authentication for transactions, tightening system security and minimizing risks from intermediary organizations.

At the recent seminar "Cashless Payments - A Driving Force for Digital Economic Growth," Deputy Prime Minister Ho Duc Phoc emphasized: "We must perfect the legal framework and policies to create favorable conditions for innovative payment models, while controlling risks and protecting people's assets." The Deputy Prime Minister also noted the need to quickly develop a comprehensive strategy for digital payments, with people at the center, through early financial education in schools, enhancing the digital capacity of the community, and supporting infrastructure in remote areas.

The Ministry of Industry and Trade aims to achieve 80% cashless transactions in e-commerce by 2030. To achieve this, a comprehensive plan for 2026-2030 has been prepared with solutions to support small traders in traditional markets, integrate affordable mobile payment options, and collaborate with intermediary organizations to popularize e-wallets, QR codes, contactless cards, etc.

A notable proposal from Shinhan Bank is that Vietnam could learn from South Korea's policy of deducting personal income tax for users of digital payments. This policy previously helped South Korea increase its cashless transaction rate by 15%. If a similar policy were implemented in Vietnam, along with tax incentives for businesses accepting digital payments, the digital economy is expected to grow by an additional 10% annually.

According to economic experts, cashless payments are not just a technological issue; they are a cornerstone of the digital economy development strategy. When the government, businesses, and citizens work together, Vietnam can absolutely break through to build a modern, transparent, and competitive society in the digital age.

According to VNA

Source: https://doanhnghiepvn.vn/kinh-te/kinh-te-so-tang-toc-nho-thanh-toan-khong-tien-mat/20250618051631866