Vietnam's Cashless Transaction Value Sharply Increased

Technology Author: EqualOcean News, ChenZhiheng、JiangShan May 14, 2024 09:00 AM (GMT+8)

According to data from the State Bank of Vietnam, the total value of cashless transactions in 2023 amounted to 23 times the country's GDP, reaching 90% of the target originally set for 2025. Pham Anh Tuan, Director General of the Payment Department of the central bank, remarked at a conference on digital transformation in the banking sector that this data reflects a growing trend among Vietnamese people to move away from cash.

Vietnam's GDP last year reached $430 billion, while the estimated value of cashless payments amounted to $9.89 trillion. Central bank data also indicates a gradual reduction in Vietnam's population reliance on cash. The report highlights a nearly 2% decrease in the number of ATMs in Vietnam in January compared to the same period last year, with the total standing at 20,986. Additionally, congestion at ATMs during holidays has eased.

Last year, approximately 87% of Vietnamese adults had at least one bank account, surpassing the 80% target set for 2025. The State Bank of Vietnam reported that cashless payments increased by over 50% last year. According to a survey released by payment company Visa in March, 56% of Vietnamese carried less cash the previous year compared to 2022. Moreover, Vietnamese individuals went an average of 11 consecutive days without using cash, nearly quadrupling from 2022.

Meanwhile, mobile transactions doubled, and website transactions increased by 50%, driven by the surge in cashless transactions, which has propelled the development of the e-commerce industry. As consumers increasingly shop online and utilize electronic payment methods, e-commerce platforms have the opportunity to expand their business operations and attract more consumers and merchants.

Cashless payments have also positively impacted the tax sector, particularly as tax authorities aim to enhance supervision of banking transactions, including cross-border transactions, by amending and supplementing mechanisms to facilitate data sharing with the central bank.