The number of bank accounts has reached 67.4 million as recorded on October 2016. However, according to the VIRAC’s survey, abouts 20% to 40% of these accounts are actived. The development of non-cash payments and Fintech has offered an opportunity to provide people with more financial services, ease of money exchange and receiving loans.
‘Many employees are earning money on the side’ – said an executive of a big company. Extra incomes from a side job – which is common in Vietnam these days – are paid by cash.
Shadow economy (or informal economy) is large in proportion in total GDP. As a result, Vietnamese government has been hampered by missing taxes. Whereas, for the country, the ratio of cash in the total means of payment has tended to decrease, the economy transparency could be improved and the tax revenue of government could increase.
‘The world is headed towards cashless, why is there not a reason for everyone to be happy?” asked Mr.Ma. The Vietnam National Bank (central bank) sets a target to reduce cash payment to less than 10% by 20 years. At present it is encouraged online payment at EC which is only around 15%. Besides, we aim to settle 70% of payment for utilities and communication expenses by non-cash, and half of consumers in big cities aim to use other payments than cash when shopping.