Directive No. 22/CT-TTg promotion of non-cash payment development solutions in Vietnam

DIRECTIVE

On the promotion of non-cash payment development solutions in Vietnam

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On December 30, 2016, the Prime Minister issued the Decision No. 2545/QD-TTg on approving the Scheme on development of non-cash payment in Vietnam during the 2016 - 2020 period (hereinafter referred to as “the Decision No. 2545/QD-TTg”). After nearly four years of implementing the Decision 2545/QD-TTg, non-cash payment activities continued to develop positively; payment infrastructure and technology are focused on investment, improving quality and promoting efficiency; the inter-bank electronic payment system operates stably, safely,  efficiently, and satisfies the nationwide inter-bank payment needs; ensuring security and safety of the non-cash payment system is respected and strengthened; electronic payment services and instruments have been strongly developed and diversified; most of the new and modern payment products and instruments have been researched and deployed in Vietnam, especially payment through mobile devices which has a strong growth rate.

However, the ratio of cash on total payment instruments is still high compared to the target set out in the Decision 2545/QD-TTg (as of December 31, 2019: 11.33%); the use of cash is still quite common in people’s civil transactions, especially in rural areas, remote areas; electronic payment in e-commerce is still low, not commensurate with the development potential; the implementation of non-cash payment in the field of health and education remains modest; crimes in the field of high technology and electronic payment have recently had complicated development with new and more sophisticated behaviors and tricks, etc.

In order to continue to promote non-cash payment and electronic payment to reach targets set out in the Decision 2545/QD-TTg, especially in the complicated development context of the COVID-19 pandemic, the Prime Minister requests ministries, branches and relevant localities to proactively and urgently implement key tasks assigned by the Prime Minister in the Decision 2545/QD-TTg and the Government’s Resolutions. To be specific:

1. The State Bank of Vietnam:

a) To urgently complete the review, amendment, supplement and perfection of the legal framework for non-cash payment and electronic payment activities, satisfying new payment models and product development requirements; to assume the prime responsibility for and coordinate with ministries and relevant agencies in submitting the Government to consider and promulgate the new Decree replacing the Decree on non-cash payment before July 01, 2020.

b) To continue to study and promulgate according to its competence or submit the competent authorities to promulgate appropriate mechanisms and policies on payment service charges in order to encourage organizations and individuals to make non-cash payments.

c) To direct the construction and development of the automated clearinghouse for retail payment transactions (ACH), officially put into operation and deploying the service before December 15, 2020.

d) To urgently and fully complete the Prime Minister’s directions in the Decision No. 2545/QD-TTg and the document No. 5514/VPCP-KTTH dated June 24, 2019 of the Government Office on solutions to develop the shared POS infrastructure in a safe, secure and smooth manner, in compliance with international standards, ensuring that saving social costs and the state capital.

dd) To efficiently implement the Resolution No. 02/NQ-CP dated January 01, 2020 of the Government on the further performance of tasks and implementation of major solutions to improve the business environment and national competitiveness in 2020 (hereinafter referred to as “the Resolution No. 02/NQ-CP”), the Directive No. 11/CT-TTg dated March 04, 2020 of the Prime Minister on urgent tasks and solutions to remove difficulties for production and business, ensure social security in response to the COVID-19 epidemic; to assume the prime responsibility for and coordinate with relevant agencies in studying and submitting the Prime Minister to deploy new payment service models, timely ensuring the management and satisfying the practical requirements.

e) To continue to study and apply know-your-customer (KYC) solutions using electronic devices in order to promote the access to and use of payment services.

g) To strengthen the inspection, supervision, monitoring, prevention and combating of money laundering and terrorist financing in activities of non-cash payment, electronic payment, intermediary payment, ensuring the security, safety and efficiency.

2. The Ministry of Industry and Trade shall urgently complete the promulgation of mechanism and policies to encourage goods and service retail facilities to accept and use electronic payment instruments; to encourage electronic payment in e-commerce before July 01, 2020.

3. The Finance Ministry:

a) To continue to perfect the connection between electronic payment infrastructures of credit institutions and the tax agencies, customers and State Treasury s infrastructures in order to serve the requirements of coordinating in state budget collection by electronic method.

b) To study and expand solutions for commercial banks to search customs declaration information, to support commercial banks in controlling dossiers and documents of import and export payment and limit risks of fraud and cheat.

c) To efficiently organize and implement the Resolution No. 02/NQ-CP; before July 01, 2020, to have detailing guidelines on the financial mechanism of administrative organizations and non-business units in the payment of non-cash payment service charges to credit institutions and intermediary payment service providers, ensuring the feasible and uniform application of such guidelines.

4. The Ministry of Health shall focus on deploying the Resolution No. 02/NQ-CP; complete the direction and guidance provision for hospitals in coordinating with credit institutions and intermediary payment service providers in collecting health service charges by non-cash payment methods before July 01, 2020.

5. The Ministry of Education and Training shall urgently and efficiently implement the Resolution No. 02/NQ-CP; before July 01, 2020, to complete the direction and guidance provision for schools in coordinating with credit institutions and intermediary payment service providers in collecting education service fees by non-cash payment methods, to build and standardize the database, upgrade the technical infrastructure connecting and sharing information with credit institutions and intermediary payment service providers to collect education service fees by electronic payment instruments.

6. The Ministry of Labor, War Invalids and Social Affairs and the Vietnam Social Security: To focus on implementing the Resolution No. 02/NQ-CP; before July 01, 2020, to complete the formulation and promulgation according to the competence of guidelines, standards, roadmap to standardize information data on persons entitled to the pension, social insurance allowance and social security regimes on order to connect and share information with credit institutions and intermediary payment service providers in the payment of social security regimes, pension and social insurance allowance through banks.

7. The Ministry of Public Security:

a) To urgently complete the reviewing, amendment and supplement of regulations on ensuring security, safety, detecting, preventing and handling violations against legal provisions on the field of electronic payment and intermediary payment.

b) To assume the prime responsibility for and coordinate with the State Bank of Vietnam and relevant ministries and branches in inspecting, detecting, preventing and handling violations against legal provisions on the field of electronic payment and intermediary payment and other violations using high technology.

c) To organize and implement the Resolution No. 02/NQ-CP, before July 01, 2020, to complete presiding and building the database on the handling of administrative violations in the field of transport; to uniformly apply the identification of fines for administrative violations; to connect and share information on fine collection with the State Treasury, credit institutions and related units; to apply non-cash payment methods in collecting fines for administrative violations.

8. The Ministry of Information and Communications shall continue to direct the information and press agencies to promote the propaganda and popularization for the people about the advantages and interests of non-cash payment and electronic payment.

9. The Ministry of Transport shall urgently complete studying and promulgating policies to promote the development of multi-purpose, multi-function, contactless and non-physical cards for payment of road and bridge tolls, bus tickets and taxi fares, etc. before July 01, 2020.

10. The provincial People’s Committee shall focus on directing to deploy and report the implementation and its results in the area according to the Resolution No. 02/NQ-CP’s direction.

11. Organization of implementation

a) Ministries, branches and relevant agencies shall urgently implement assigned tasks; before November 01, 2020, to summarize the report on the implementation results of this Directive and the Decision No. 2545/QD-TTg and send it to the State Bank of Vietnam for summarizing and reporting to the Prime Minister.

b) The State Bank of Vietnam shall assume the prime responsibility for and coordinate with ministries, branches and relevant agencies in urging and implementing assigned tasks, summarizing, finalizing and evaluating the implementation results of this Directive and the Decision No. 2545/QD-TTg, and report the Prime Minister before December 01, 2020./.