Decision No. 1813/QD-TTg dated October 28, 2021 on approving the scheme for development of non-cash payment in Vietnam for the period 2021 - 2025

DECISION

APPROVING THE SCHEME FOR DEVELOPMENT OF NON-CASH PAYMENT IN VIETNAM FOR THE PERIOD 2021 - 2025

THE PRIME MINISTER

Pursuant to the Law on Government Organization dated June 19, 2015; Law on Amendments to some Articles of the Law on Government Organization and Law on Local Government Organization 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; Law on Amendments to some Articles of the Law on Credit Institutions dated November 20, 2017;

At the request of the Governor of the State Bank of Vietnam in the document No. 77/TTr-NHNN dated September 20, 2021.

HEREBY DECIDES:

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I. VIEWPOINTS

1. Stick to the guidelines, orientations and policies of the Communist Party and the Government on the development of financial and banking services, proactively participate in the Fourth Industrial Revolution (Industry 4.0), and develop digital economy and digital transformation.

2. Focus on customer-centricity in association with assurance of security and safety, and protection of customers’ legitimate rights and interests in non-cash payment; improvement of customer experience, rise in the number and value of payment transactions are measures of effectiveness in non-cash payment.

3. Give priority to the completion of the legal framework; build a digital payment ecosystem by way of connection, integration and sharing of data between payment systems and systems in other industries and fields in the economy.

4. Promote innovation, strengthen cooperation, research into and application of international models, achievements and experiences in the field of payment to non-cash payment in Vietnam.

II. OBJECTIVES

1. General objectives

a) Make a positive change in non-cash payment in the economy with high growth, cultivate the habit of using non-cash payment methods in society among the public in urban areas and gradually develop non-cash payment in rural areas, remote and isolated areas; reduce the social costs associated with cash.

b) Take full advantage of the achievements of the Industry 4.0 to upgrade and develop payment infrastructure and non-cash payment services, serving the payment needs of organizations and individuals in a convenient and efficient manner.

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2. Specific objectives by the end of 2025

a) The value of non-cash payments is projected to be 25 times higher than the GDP.

b) The ratio of non-cash payments in e-commerce is expected to reach 50%.

c) 80% of people aged 15 or older old will have a transaction bank account at a bank or other authorized institutions.

d) People’s access to payment services is set to increase; the number of points accepting non-cash payments is expected to increase by over 450,000.

dd) Objectives of increasing the use of non-cash payment means and services:

- The average growth rate in the number and value of non-cash payment transactions is expected to reach 20 - 25%/year;

- The average growth rate in the number of transactions through mobile phone channel will reach 50 - 80%/year and the value of transactions will reach 80 - 100%/year;

- The average growth rate in the number and value of transactions via Internet is estimated reach 35 - 40%/year;

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e) Objectives of making non-cash payment with respect to public services:

- 90 - 100% of educational institutions in urban areas will accept the payment of tuition fees through non-cash transactions; 90 - 100% of universities and colleges in urban areas will accept online tuition fee payments on the National Public Service Portal;

- 60% of health facilities in urban areas will accept payment of medical services by non-cash payment method;

- 60% of people receiving pensions, social insurance benefits and unemployment benefits in urban areas will be paid through non-cash payment methods.

III. SOLUTIONS FOR DEVELOPMENT OF NON-CASH PAYMENT FOR THE PERIOD 2021 - 2025

1. Complete the legal corridor, mechanisms and policies

a) Review, propose amendments to some Articles and Clauses related to payment in prevailing legal documents (such as Law on the State Bank of Vietnam, Law on Credit Institutions, Law on Prevention of Money Laundering and other relevant legal documents).

b) Study and build a Payment Systems Bill (as assigned in the Prime Minister’s Decision No. 986/QD-TTg dated August 08, 2018 approving the Development Strategy of Vietnam Banking Sector by 2025 and vision to 2030) in order to facilitate management and supervision by the State Bank of Vietnam (hereinafter referred to as “SBV”) of  payment systems, means and services and in a manner that ensures practicality, and follows development trends and international practices.

c) Complete the formulation and promulgation of a Decree replacing the Decree No. 101/2012/ND-CP dated November 22, 2012 on non-cash payment and formulate guiding documents.

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dd) Complete and promulgate regulations on e-identification and e-authentication; promulgate regulations on personal data protection; promulgate regulations and guidelines allowing relevant organizations to connect and share information from the National Population Database to serve the information authentication and customer identification by electronic means.

e) Complete the development and promulgation of a mechanism for controlled testing of financial technology (Fintech) activities in the banking sector to create a legal framework, meet management requirements, and promote innovation and creativity and apply new business and cooperation models in payment service provision.

g) Review and propose amendments to regulations of law on e-transactions, cybersecurity, assurance of safety and data security and user protection, etc. in order to support and facilitate the application of technologies, innovation and creation, ensuring safety and security in payment activities.

h) Study and propose mechanisms and policies on national digital currency.

i) Work out a solution to continue encouraging non-cash payment to contribute to tax administration.

k) Implement appropriate policies on non-cash payment service charges, enabling users to access non-cash payment services at a reasonable cost.

2. Upgrade and develop modern payment infrastructure operating safely and efficiently and having the ability to connect and integrate with other systems

a) Upgrade and modernize the National interbank electronic payment system which processes multi-currency payment transactions and aims to operate according to international principles and standards and enhance its ability to connect and integrate with and make payments to other systems.

b) Complete and develop financial switching and electronic clearing infrastructure, contributing to promoting the development of retail payment, expanding the ecosystem, ensuring connectivity and integration with other industries and fields to serve online payment; study and expand connection with financial switching and electronic clearing systems of other countries.

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d) Apply ISO 20022 to several important payment systems in Vietnam.

3. Develop modern payment services and apply the achievements of the Industry 4.0

a) Study and apply the achievements of the Industry 4.0 to diversify payment products and services on a digital platform, ensuring safety and security and bringing convenience to users.

- Develop new and modern payment products and services by way of applying such core technologies as open application programming interface platform (open API), artificial intelligence and big data analysis (AI, Big Data, Data Analytics), cloud computing and biometric authentication;

- Boost the application of payment products and services on mobile devices, such as: QR Code payment, tokenization of card information, mobile payment, contactless payment, e-wallets;

- Encourage cooperation and connection between banks and Fintech companies to innovate, create and develop new payment solutions and models;

- Encourage investment in, appropriately arrange and include more functions and utilities in card acceptance devices (ATM, POS) in appropriate and effective forms;

- Continue to develop bank card services and provide other value-added services; focus on completing the conversion of bank cards from magnetic cards to chip cards, ensure security and safety in card payment, develop services, and facilitate connection with other payment systems.

b) Develop e-payment in e-commerce

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- Formulate policies to promote, develop and encourage the people, enterprises and related organizations to use non-cash payment services in e-commerce activities; focus on developing payment utilities on mobile devices (such as QR Codes, tokenization of card information, mobile payment, contactless payment, e-wallets) to boost the e-commerce development;

- Build a system for settling complaints and disputes online in e-commerce to safeguard the legitimate rights and interests of the parties involved in transactions.

c) Develop non-cash payment in rural areas, remote and isolated areas

- Focus on implementing solutions to diversify suppliers and distribution channels, non-cash payment products and services according to the National Comprehensive Financial Strategy. Encourage the development of non-cash payment products and services suitable for consumption behaviors in rural, remote and isolated areas, border areas and islands;

- Study and gradually provide payment agent services; allow non-bank organizations to provide payment agent services in rural, remote and isolated areas, border areas and islands according to regulations;

- Take advantage of infrastructure, data, telecommunications networks and reduce social costs to develop and expand non-cash payment channels on mobile devices in rural, remote and isolated areas, border areas and islands associated with the use of telecommunications accounts for payment for small-value goods and services (Mobile - Money); review, evaluate and make appropriate proposals for handling Mobile - Money services.

4. Promote e-payment in the governmental sector and public administrative services

a) Improve the connectivity between the e-payment infrastructure of payment service providers, intermediary payment service providers, the national interbank electronic payment system and the financial switching and e-clearing system with the infrastructure of tax authorities, customs authorities and treasuries to serve the need for cooperation in collection of state budget revenues and push the state budget allocation by non-cash payment method.

b) Promote e-payment and provide level 4 online public services; improve the connectivity between payment service providers and intermediary payment service providers with the National Public Service Portal and the electronic single window systems of ministries, local governments, agencies and units concerned in order to simplify procedures and facilitate e-payment of fees, charges, electricity and water bills, tuition and hospital fees.

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d) Implement solutions to improve infrastructure and database, promote e-payment in provision of social security benefits, pension payments, social insurance benefits and unemployment benefits.

5. Strengthen inspection, auditing and supervision, assurance of security and safety and application of international standards in payment activities

a) Develop tools for collecting and analyzing supervision information by way of automation, build a database of objects under supervision; improve supervision efficiency in order to detect and prevent risks.

b) Study and apply international standards in assessment and supervision of payment systems.

c) Intensify cooperation, coordination and information exchange between SBV and the Ministry of Public Security and relevant units to promptly detect, prevent, investigate and handle violations of law that arise from payment activities; share information on the situation, methods and tricks used by criminals in payment activities in order to promptly warn and recommend payment service providers, intermediary payment service providers and service users to prevent the risk of misuse of payment activities for carrying out illegal activities.

d) Continue to study, update and apply international standards and practices, solutions to ensure security, safety and confidentiality; prevent risks arising, protect the legitimate rights and interests of service users.

dd) Carry out inspection, auditing, supervision and prevention of and fight against money laundering and terrorism financing in non-cash payment, e-payments, intermediary payment to ensure safety and efficiency upon making payment.

6. Promote the provision of information, training and instructions to consumers and protection of consumers in non-cash payment

a) Promote the provision of information, training and instructions on non-cash payment and e-payment

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- Develop and implement training programs for parties related to non-cash payment and e-payment so as to improve knowledge and effectively communicate information thereon to the public;

- Implement the cooperation between ministries, local authorities, socio-political organizations and other relevant organizations in executing communication programs to promote non-cash payment and e-payments in residential areas, Governmental sector and public administrative services;

- Encourage payment service providers, intermediary payment service providers, and goods and service providers to execute programs on fee exemption and reduction, promotion and discount, etc. for customers when using non-cash payment methods to pay for their goods and services.

b) Protect consumers during non-cash payment.

- Review and propose specific solutions to improve the civil, administrative and criminal laws and dispute settlement mechanism in order to better protect the legitimate rights and interests of the parties, especially the interests of financial consumers, ensure the rigor and deterrence, issue remote warning and prevent risks and disputes arising from non-cash payment activities;

- Continue the communication and dissemination of solutions to ensure security, safety and confidentiality in non-cash payment and e-payment for service users; cooperate in answering questions and handling complaints to protect the legitimate rights and interests of consumers; develop a non-cash payment manual for customers;

- Study and apply international best practices on consumer protection of non-cash payment services.

7. Intensify cooperation in promoting non-cash payment

a) Promulgate and effectively implement agreements, cooperation regulations and minutes of bilateral or multilateral cooperation among relevant ministries to promote the development of non-cash payment, especially the collection of state budget revenues and payment to the state budget, approve, inspect and supervise Mobile - Money services, ensure security and safety in e-payment activities, intermediary payment, and manage and supervise cross-border payment activities.

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c) Effectively exploit and use resources in the form of financial and technical support, policy consulting, training support and capacity building from bilateral and multilateral partners to improve quality of human resources and develop payment infrastructure and technology.

d) Proactively study new payment models, means and forms around the globe and apply them effectively in Vietnam.

dd) Continue to establish and strengthen bilateral dialogue about payment with strategic partners and other important partners; consider participating in international organizations and forums about financial inclusion and payment.

e) Participate in discussion about international payment laws and standards concerning payment activities at organizations and bilateral forums, especially BIS; keep expanding integration of payment systems; gradually approach common standards and international practices.

IV. FUNDING SOURCES

The Scheme is funded by donations, state budget included in the annual estimates of Ministries, central and local government authorities within the applicable state budget and other legal funding sources as prescribed.

V. IMPLEMENTATION

1. SBV shall preside over and cooperate with relevant ministries and local authorities in organizing and supervising the implementation of the solutions specified in the Scheme; annually report and propose solutions to the Prime Minister; submit a terminal report at the end of 2025.

2. Ministries and local governments, within the ambit of their competence, shall:

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- Perform their tasks assigned in the Plan for implementation of key tasks serving implementation of the Scheme for development of non-cash payment promulgated together with this Decision;

- Submit annual reports by December 15 to SBV, which will submit a consolidated report to the Prime Minister.

Article 2.This Decision comes into force from the date on which it is signed.

Article 3.The Governor of the State Bank of Vietnam, Ministers, Heads of ministerial agencies, Heads of Governmental agencies, and Chairmen/Chairwomen of People’s Committees of provinces and central-affiliated cities are responsible for the implementation of this Decision.

PP. THE PRIME MINISTER
THE DEPUTY MINISTER




Le Minh Khai

APPENDIX

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No.

Tasks

Presiding unit

Cooperating unit

Implementation time

1

Review and propose amendments to some Articles and Clauses related to payment in prevailing legal documents (such as Law on the State Bank of Vietnam, Law on Credit Institutions, Law on Prevention of Money Laundering and other relevant legal documents)

State Bank of Vietnam

Ministry of Justice, ministries concerned

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2

Review and propose amendments to the Law on E-Transactions and its guiding documents, containing regulations on assurance of security and safety in e-transactions

Ministry of Information and Communications

Ministry of Justice, SBV, ministries concerned

2021 - 2022

3

Review and propose specific solutions to improve the civil, administrative and criminal laws and dispute settlement mechanism in order to better protect the legitimate rights and interests of the parties in non-cash payment activities

Ministry of Justice, SBV, Ministry of Public Security, Ministry of Industry and Trade

Ministries concerned

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4

Review and propose amendments to regulations of law on consumer protection in applicable legal documents (such as Law on Consumer Protection)

Ministry of Industry and Trade

Ministry of Justice, SBV, ministries concerned

2021 - 2023

5

Study and formulate a Payment Systems Bill

SBV

Ministry of Justice, Ministry of Finance, units concerned

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6

Complete the formulation of a Decree replacing the Decree on non-cash payment and guiding documents

SBV

Ministry of Justice, ministries concerned

2021

7

Review and consider proposing amendments to the Decree providing for non-cash payment

SBV

Ministry of Justice and ministries concerned

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8

Complete the formulation of a mechanism for controlled testing of financial technology (Fintech) activities in the banking sector

SBV

Ministry of Justice and ministries concerned

2021 - 2022

9

Formulate regulations on e-identification and e-authentication

Ministry of Information and Communications

Ministry of Justice and ministries concerned

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10

Formulate regulations on personal data protection

Ministry of Public Security

Ministry of Justice and ministries concerned

2021 - 2022

11

Promulgate regulations and guidance on connection, sharing and exploitation of National Population Database.

Ministry of Public Security

Ministries concerned

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12

Study and propose mechanisms and policies on national digital currency

SBV

Ministry of Justice, ministries concerned

2021 - 2025

13

Work out a solution to continue encouraging non-cash payment to contribute to tax administration

Ministry of Finance

SBV, ministries concerned

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14

Direct the application of non-cash payment service charges, enable users to access non-cash payment services

SBV

Payment service providers

2021 - 2023

15

Upgrade and modernize the National interbank electronic payment system

SBV

Units concerned

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16

Direct the completion and development of financial switching and electronic clearing infrastructure

SBV

Units concerned

2021 - 2025

17

Formulate policies to promote, develop and encourage the use of non-cash payment services in e-commerce activities

Ministry of Industry and Trade

SBV, ministries concerned

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18

Build a system for settling complaints and disputes online in e-commerce

Ministry of Industry and Trade

Ministries concerned

2021 - 2022

19

Improve the connectivity between the e-payment infrastructure of payment service providers, intermediary payment service providers, the national interbank electronic payment system and the financial switching and e-clearing system with the infrastructure of tax authorities, customs authorities and treasuries

Ministry of Finance

SBV and ministries concerned

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20

Promote e-payment and provide level 4 online public services; improve the connectivity between payment service providers and intermediary payment service providers with the National Public Service Portal and the electronic single window systems of ministries, local governments, agencies and units

Office of the Government, ministries, People’s Committees of provinces and central-affiliated cities

Payment service providers, intermediary payment service providers

2021 - 2025

21

Upgrade technical infrastructure and standardize database to connect and share information with payment service providers and intermediary payment service providers to serve non-cash payment; provide instructions on promoting connection and provision of public services on the National Public Service Portal

Ministry of Health, Ministry of Education and Training, relevant ministries, People’s Committees of provinces and central-affiliated cities

Ministry of Information and Communications, units concerned

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22

Encourage schools, hospitals, electricity, water, sanitation, telecommunications and postal companies in urban areas to cooperate with banks and intermediary payment service providers to collect tuition and hospital fees, electricity bills, etc. by non-cash payment method

Ministry of Health, Ministry of Education and Training, People’s Committees of provinces and central-affiliated cities

Units concerned

2021 - 2023

23

Implement solutions to improve infrastructure and database, promote e-payment in provision of social security benefits, pension payments, social insurance benefits and unemployment benefits

Ministry of Labor, War Invalids and Social Affairs, Vietnam Social Security

Ministry of Information and Communications, People’s Committees of provinces and central-affiliated cities, units concerned

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24

Disseminate information on non-cash payment

SBV

Ministry of Information and Communications, People’s Committees of provinces and central-affiliated cities, units concerned

2021 - 2025

25

Encourage payment service providers, intermediary payment service providers, and goods and service providers to execute programs on fee exemption and reduction, promotion, and price reduction, etc. for customers when using non-cash payment methods to pay for their goods and services

SBV

Ministry of Industry and Trade, payment service providers, intermediary payment service providers, units concerned

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