Cashless payments are expanding rapidly in Ha Noi, driven by the booming e-commerce industry, but experts say more can be done to increase digital spending.

Speaking at an event to promote paying by means other than actual cash, Lai Viet Anh, Deputy Director of the Viet Nam E-commerce and Digital Economy Agency under the Ministry of Industry and Trade said e-commerce was becoming an important pillar in the development of the digital economy.

The event, co-organised by the municipal Department of Industry and Trade and the Viet Nam E-commerce and Digital Economy, aimed to promote the development of e-commerce and encourage citizens, enterprises, and organisations to go cashless, Anh said.

Ha Noi has set the target that by the end of this year, cashless payments would make up for 45 per cent of e-commerce and 65 per cent of transactions on e-commerce websites, apps with e-invoices.

In addition, small and medium-sized enterprises, operating on e-commerce platforms, including social networks with e-commerce trading functions, would account for 45 per cent and 35 per cent would participate in e-commerce via mobile apps.

The city also wants 98 per cent of enterprises to declare and pay taxes electronically by the end of 2022.

Cashless payment for water and electricity bills would account for 98 per cent and 99.7 per cent, respectively.

According to Tran Thi Phuong Lan, acting Director of the municipal Department of Industry and Trade, the department would continue to enhance the cooperation with the State Bank of Vietnam’s Ha Noi branch to encourage the provision of modern payment services to promote e-commerce and digital transformation.

Solutions would also be raised to encourage consumers to switch to online shopping.

Statistics of the central bank’s Ha Noi branch showed that to date, more than 39 million e-wallets have been activated, representing a rise of 3.68 per cent compared to the end of 2021. The total value of transactions via e-wallets reached more than VND271 trillion.

Nearly 70 per cent of Vietnamese adults had payment accounts at credit institutions with a total of 5.5 million accounts and 1.77 million mobile money accounts, 67.2 per cent of which were opened in rural and remote areas.

Hoang Huyen Tran, Deputy Director of the central bank’s Ha Noi branch said that cashless payments would be strengthened in public services to create convenience for residents paying electricity and water bills, as well as school and hospital fees.

The event was held as a part of the Ha Noi annual promotion programme and is expected to create impetus for enterprises to increase cashless payment, and e-commerce operations and promote consumption. — VNS