THE PRIME MINISTER
THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
Hanoi, October 28, 2021
Approving the Scheme on development of non-cash payment in Vietnam during 2021 - 2025
THE PRIME MINISTER
Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law amending and supplementing a number of articles of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;
Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;
Pursuant to the Law on Credit Institutions dated June 16, 2010; the Law Amending and Supplementing a Number of Articles of the Law on Credit Institutions dated November 20, 2017;
At the proposal of the Governor of the State Bank of Vietnam in the Document No. 77/TTr-NHNN dated September 20, 2021.
Article 1. To approve the Scheme on development of non-cash payment in Vietnam during 2021 - 2025 with the following principal contents:
1. Adhering to the guidelines, orientations and policies of the Party and the Government on the development of financial and banking services, actively participating in the Fourth Industrial Revolution, digital economic development and digital transformation.
2. Promoting the principle of customer-centricity in association with the tasks of ensuring security, safety, legitimate rights and interests of customers in non-cash payment activities; customer experience enhancing and high growth in the number and value of payment transactions are the criteria for effectiveness assessment in non-cash payment activities.
3. Prioritizing the improvement of legal framework; building a digital payment ecosystem based on the connection, integration and sharing of data between payment systems and systems in other industries and fields in the economy.
4. Speeding up the innovation, cooperation, research and application of international models, achievements and experiences in the field of payment to non-cash payment activities in Vietnam.
1. Overall objectives
a) To create a positive progress in non-cash payment in the national economy with high growth, make the use of non-cash payment instruments in society as a habit of people in urban areas, and gradually develop non-cash payment in rural, deep-lying and remote areas; thereby reducing cash payment-related social costs.
b) To strongly apply the achievements of the Fourth Industrial Revolution to upgrade and develop payment infrastructure and non-cash payment services, meeting the payment needs of organizations and individuals in a convenient and efficient way.
c) To ensure security, safety and confidentiality in non-cash payment activities; to improve the operational efficiency of the banking system and the management and supervision effectiveness of state management agencies, and make payment transactions transparent in the economy, thus contributing to the prevention and fight against corruption, negative practices, economic crimes, money laundering and terrorist financing.
2. Specific targets by the end of 2025
a) The value of non-cash payments will be 25 times higher than the Gross Domestic Product (GDP).
b) Non-cash payments will account for 50% of e-commerce transactions.
c) 80% of people aged 15 years or older will have transaction accounts in banks or other licensed organizations.
d) To increase people’s access to payment services; to increase the number of points accepting non-cash payments to over 450,000 points.
dd) Growth targets in the use of non-cash payment instruments and services:
- The average growth rate in the number and value of non-cash payment transactions will reach 20 - 25% per year;
- The average growth rate in the number of transactions through the mobile phone channel will reach 50 - 80% per year and the transaction value will reach 80 - 100% per year;
- The average growth rate of the number and value of transactions through the Internet channel will reach 35 - 40% per year;
- The rate of individuals and organizations using non-cash payment instruments through e-payment channels will reach 40%.
e) Non-cash payment targets for public services:
- 90 - 100% of education institutions in urban areas will accept payment of school fees by non-cash payment instruments; 90 - 100% of universities and colleges in urban areas will deploy online payment of school fees on the national public service portal;
- 60% of health examination and treatment establishments in urban areas will accept payment for medical services by non-cash payment instruments;
- 60% of people receiving pensions, social insurance benefits and unemployment benefits in urban areas will be paid through non-cash payment instruments.
III. SOLUTIONS FOR DEVELOPMENT OF NON-CASH PAYMENT DURING 2021 - 2025
1. Improving the legal framework, mechanisms and policies
a) To revise, amend and supplement to a number of payment-related provisions in the current laws (such as the Law on the State Bank of Vietnam, the Law on Credit Institutions, the Law on Anti- Money Laundering and other relevant laws).
b) To study and develop the Bill on payment systems (according to the tasks assigned in the Prime Minister's Decision No. 986/QD-TTg dated August 8, 2018, approving the Strategy for development of Vietnam’s banking sector through 2025, with orientations toward 2030) to ensure the State Bank of Vietnam's competence in management and supervision over payment systems, payment services and instruments, and compliance with practical requirements, development trends and international practices.
c) To complete the development and promulgation of the Decree replacing the Decree No. 101/2012/ND-CP dated November 22, 2012 on non-cash payments, and formulate guiding documents.
d) To revise, study and propose amendments, supplements and replacement of the Decree No. 222/2013/ND-CP dated December 31, 2013, on cash payment in order to strengthen the management of cash payment activities, especially for transactions of buying and selling properties of great value, in accordance with the Law on Housing, the Law on Real Estate Business, the Law on Anti-Money Laundering, and the Law on Anti-Corruption.
dd) To complete and promulgate regulations on electronic identification and authentication; to promulgate regulations on protection of personal data; to promulgate regulations and guidelines on allowing relevant organizations to connect and exploit information from the National Population Database in accordance with law provisions, thereby serving information authentication and customer identification through electronic means.
e) To complete the development and promulgation of a controlled testing mechanism for financial technology activities (Fintech) in the banking sector, aiming to create the legal framework, meet management requirements, promote innovation and creativity, and implement new cooperation and business models in payment service provision.
g) To revise and propose amendments and supplements to law provisions on e-transactions, cyber-security, assurance of data safety and security, and user protection, etc. in order to support and facilitate the application of technology and innovation and creativity and ensure security and safety in payment activities.
h) To research and propose mechanisms and policies on national digital currency.
i) To develop solutions to continue encouraging non-cash payments to contribute to tax administration.
k) To implement appropriate policies on non-cash payment service fees, creating favorable conditions for users to access non-cash payment services at a reasonable cost.
2. Upgrading and developing modern payment infrastructure that operates on a safe and effective manner and has the ability to connect and integrate with other systems
a) To upgrade and modernize the national interbank e-payment system, process multi-currency payment transactions, aiming to operate according to international principles and standards, and enhance connectivity, integration and implementation of payment and settlement for other systems.
b) To complete and develop the financial switching and electronic clearing infrastructure, contributing to promoting the development of retail payment, expanding the ecosystem, ensuring the ability to connect and integrate with other industries and fields to serve online payments; to study and expand the connection with financial switching and electronic clearing systems of other countries.
c) To complete and upgrade the core banking system, internal payment systems of banks and other payment systems, ensuring the connection and integration with important payment systems, technical infrastructure of public service providers and other systems to provide payment services conveniently and effectively for organizations and individuals.
d) To apply the international financial messaging standard to important payment systems in Vietnam.
3. Developing modern payment services and applying the achievements of the Fourth Industrial Revolution
a) To study and apply the achievements of the Fourth Industrial Revolution to develop a variety of payment products and services on a digitized platform, ensuring safety and security, and bringing convenience to users.
- To develop new and modern payment products and services based on the application of core technologies, such as open application programming interface (Open API), artificial intelligence (AI), big data, data analytics, cloud computing, biometric Identification;
- To promote the application of payment products and services on mobile devices, such as payment via QR code, card information tokenization, mobile payment, contactless payment and e-wallet;
- To encourage the cooperation and connection between banks and Fintech companies to innovate, create and develop new payment solutions and models;
- To encourage the investment in development, streamline and increase in functions and utilities on card payment acceptance devices (ATM, POS) with appropriate and effective forms;
- To continue developing bank card services and provide other value-added services; to focus on completing the conversion of bank cards from magnetic cards to chip cards, ensuring security and safety in card payments, increasing services, and facilitating the connection with other payment systems.
b) To develop e-payment in e-commerce transactions
- To improve and strengthen the connection and integration between the e-payment infrastructure of payment service or payment intermediary service providers with the infrastructure of payment acceptors, to better meet the requirements on e-payment in e-commerce transactions or at retail points, and online payment for goods and service bills;
- To formulate policies on promoting, developing and encouraging people, enterprises and related organizations to use non-cash payment services in e-commerce activities; to attach importance to developing payment utilities on mobile devices (such as QR code, card information tokenization, mobile payment, contactless payment and e-wallet) to promote the e-commerce development;
- To build a system for online settlement of complaints and disputes in e-commerce transactions, and protect the legitimate rights and interests of parties involved in the transactions.
c) To develop non-cash payments in rural, deep-lying and remote areas
- To concentrate on implementing solutions to diversify supply organizations, distribution channels, non-cash payment products and services in accordance with the National Comprehensive Financial Strategy. To encourage the development of non-cash payment products and services suitable to consumption behaviors in rural, deep-lying, remote, border and island areas;
- To study and gradually deploy payment agents; to allow non-banking organizations to deploy payment agents in rural, deep-lying, remote, border and island areas in accordance with regulations;
- To make full use of infrastructure, data, telecommunications networks, and reduce social costs to develop and expand non-cash payment channels on mobile devices in rural, deep-lying, remote, border and island areas in association with the deployment of using telecommunications accounts to pay for small-value goods and services (Mobile - Money); to sum up, evaluate and propose appropriate handling for Mobile - Money service.
4. Promoting e-payment in the governmental sector and public administrative services
a) To continue improving the connection between the e-payment infrastructure of payment service or payment intermediary service providers, the national interbank e-payment system, the electronic financial switching and clearing system, and the infrastructure of tax, customs and treasury agencies, in order to serve the coordination in collection of state budget revenues and strengthen the implementation of state budget expenditure by non-cash payment method.
b) To promote e-payments and provide online public services at level 4; to strengthen the connection between payment service or payment intermediary service providers and the national public service portal, the electronic one-stop system of ministries, sectors, localities, relevant agencies and units, aiming to simplify procedures and facilitate e-payments for fees, charges, electricity and water bills, school fees and hospital fees.
c) Public service providers (including health establishments and education institutions) shall build and upgrade technical infrastructure, standardize databases to connect and share information with payment service or payment intermediary service providers in service of non-cash payments; promote the connection and provision of public services on the national public service portal; encourage schools, hospitals, electricity, water, sanitation, telecommunications, and postal companies in urban areas to coordinate with banks and payment intermediaries in collecting school fees and hospital fees, electricity bill, etc. by non-cash payment method.
d) To implement solutions to improve infrastructure and database, promote e-payments in programs of social security benefits, pension payments, social insurance benefits and unemployment benefits.
5. Intensifying the inspection, examination and supervision, ensuring security and safety and applying international standards in payment activities
a) To develop automated tools for collecting and analyzing monitoring information and build a database of monitored objects; to improve monitoring efficiency in order to detect and prevent risks arising in the course of implementation.
b) To study and apply international standards in the assessment and supervision of payment systems.
c) To strengthen the mechanism of cooperation, coordination and information exchange between the State Bank of Vietnam and the Ministry of Public Security as well as relevant units in order to promptly detect, prevent, investigate and handle violations against laws in payment activities; to share information on the situation, methods and tricks of criminals in payment activities to promptly warn and make recommendations with payment service or payment intermediary service providers, and service users, aiming to prevent and control the risk of taking advantage of payment activities for illegal activities.
d) To continue studying, updating and applying international standards and practices, solutions to ensure security, safety and confidentiality; to prevent risks arising, protect the legitimate rights and interests of service users.
dd) To carry out the inspection, examination, supervision, prevention and combat against money laundering and terrorist financing in non-cash payment activities, e-payments and payment intermediary services, aiming to ensure safe and effective payment operations.
6. Stepping up information, propaganda, training, guidance and protection for consumers in non-cash payments
a) To intensify information, propaganda, training and guidance on non-cash payments and e-payments
- To formulate plans and implement financial education and communication programs in diverse forms, applying the achievements of the Fourth Industrial Revolution, with easy-to-understand, easy-to-remember, easy-to-implement, and pervasive contents, focusing on the target groups such as people in deep-lying and remote, rural and island areas, disadvantaged people in society, people without bank accounts, pupils, students, children; micro, small and medium-sized enterprises, and consumers who have little opportunity to get access to technology, etc., thereby contributing to improving knowledge and skills in the use of non-cash payment products and services;
- To build and deploy training programs to stakeholders on non-cash payments and e-payments to improve knowledge and effectively communicate to the public;
- To coordinate between ministries, sectors, local administrations, socio-political organizations, and other relevant organizations in implementing communication programs to promote non-cash payments and e-payment in residential areas, the governmental sector and public administrative services;
- To advocate and encourage payment service and payment intermediary service providers, goods and services suppliers to apply forms of fee exemption and reduction, promotion and discount, etc. for customers when using non-cash payment instruments to pay for goods and services.
b) To protect consumers in non-cash payments
- To revise and propose specific solutions to improve civil, administrative and criminal laws and dispute settlement mechanism to better protect the legitimate rights and interests of parties, especially the interests of financial consumers, ensuring the rigor, deterrence, warn and prevention of risks and disputes arising from non-cash payment activities;
- To continue conducting communication and education on solutions to ensure security, safety and confidentiality in non-cash payments and e-payments for service users; to coordinate in clearing up queries and handling complaints to ensure the legitimate rights and interests of consumers; to develop a manual on non-cash payment for customers;
- To study and apply the best international practices to the protection of non-cash payment service users.
7. Enhancing coordination mechanism to promote non-cash payment
a) To reach and effectively implement bilateral and multilateral cooperation and coordination agreements and memos of understanding between related ministries and sectors in order to promote the development of non-cash payments, especially in the collection and payment of state budget revenues, approval, inspection and supervision of Mobile - Money services, ensuring security and safety in e-payment activities, payment intermediary services, management and monitoring of cross-border payment activities.
b) To actively and proactively expand international integration in the field of payment according to a roadmap with appropriate steps; to actively participate in activities of financial - monetary institutions, regional and international payment forums; to concentrate on realizing the signed integration commitments related to the field of payment .
c) To call for and efficiently use resources in the form of financial or technical assistance, policy advice, training support and capacity building from bilateral and multilateral partners in order to raise the quality of human resources and develop technical and technological infrastructure facilities for non-cash payment.
d) To proactively study new payment models, instruments and forms in the world for effective application in Vietnam.
dd) To continue establishing and strengthening bilateral external mechanisms in the field of payment with strategic partners and other major partners; to consider joining international financial inclusion and payment organizations and forums.
e) To actively participate in discussions about international rules, regulations and standards on payment activities at multilateral organizations and forums, especially the Bank for International Settlements (BIS); to continue international integration in the priority fields concerning payment systems, step by step applying universal criteria and international practices.
IV. FUNDING FOR IMPLEMENTATION
Funds for the implementation of the Scheme will be allocated from financial aid, annual state budget funds of ministries, central agencies and localities according to current budget decentralization and other lawful funding sources as prescribed by law provisions.
V. ORGANIZATION OF IMPLEMENTATION
1. The State Bank of Vietnam shall act as the focal point, assume the prime responsibility for, and coordinate with relevant ministries, sectors and localities in, implementing and monitoring the implementation of solutions set forth in the Scheme, and annually review the implementation and propose necessary solutions to the Prime Minister; organize a final review by the end of 2025.
2. Based on their assigned functions and tasks, the ministries, sectors and localities shall:
- Promptly and effectively implement the contents and tasks of the Scheme; incorporate contents on development of non-cash payment into their socio-economic development schemes, projects, plans and programs;
- Perform their assigned tasks specified in the plan on performance of a number of major tasks to implement the Scheme, promulgated together with this Decision;
- Before December 15 every year, send reports on implementation results to the State Bank of Vietnam for summing up and reporting to the Prime Minister.
Article 2. This Decision takes effect on the date of its signing.
Article 3. The Governor of the State Bank of Vietnam, ministers, heads of ministerial-level agencies and government-attached agencies, and chairpersons of People's Committees of provinces and centrally-run cities shall implement the Decision./.
For the Prime Minister
The Deputy Prime Minister
LE MINH KHAI
* All Appendices are not translated herein.