MBRCGI Websites
|
Ibtekr.org
|
MBRCGI.gov.ae
|
UAE Innovates
|
Edge of Government
|
Pitch@Gov

Pilot project to activate smart financial services in Vietnam

10 minute read
The Communications Commission of Vietnam called on the private sector, From telecommunications companies and the development of electronic financial services, To propose a plan for the implementation of the project within the guidelines of the Ministry of Information and Communications, And submit it to the Central Bank for approval and obtaining permission to implement the project. The Authority asked the participating companies to include in the plan the preparation of solutions, including details relating to facilities, technology infrastructure, and human work cadres, As well as proposing relevant policies.
Share this content

Add to Favorite ♡ 0

The Government of Vietnam recently approved a two-year pilot project to test mobile financial services before they are officially launched for the first time at the end of the trial. As part of efforts to promote the inclusion of low-income groups in the processes of financial digital transformation, Raising the proportion of cashless financial transactions in Vietnam markets.

The Communications Commission of Vietnam has invited the private sector, From telecommunications companies and the development of electronic financial services, To propose a plan for the implementation of the project within the guidelines of the Ministry of Information and Communications, And submit it to the Central Bank for approval and obtaining permission to implement the project. The Authority asked the participating companies to include in the plan the preparation of solutions, including details relating to facilities, technology infrastructure, and human work cadres, As well as proposing relevant policies. The government will retain the powers to manage the project, These tasks will be shared by the Ministry of Public Security, The Ministry of Information and Communications, The Central Bank, In order to ensure the security and safety of transactions for users.

There is currently no accurate and definitive information about the technologies that the government wishes to adopt in the project. But it is expected to include some of the new technologies that have entered the Vietnam market in recent years, Like cloud computing, Data analysis and artificial intelligence.

It is worth noting that Vietnam has made great strides in economic development since it began the campaign of administrative and economic reforms in the mid-eighties of the last century in an effort to put the country on the path of development in the post-war and crisis phase. The country has adopted an economy policy geared towards promoting the growth of the domestic market, Today, Vietnam is one of the fastest growing emerging economies in the world. The Government of Viet Nam also did not lose sight of the importance of technological progress. Especially in the field of information and communication technology. But despite these achievements, Some key demographic indicators remained declining, Such as low usage of banking services, Especially in low-income rural areas that lack even modern methods of electronic payment – although this segment represents about 70% of Vietnam's population – statistics show that the percentage of adults who have a bank account in Vietnam does not exceed 64%. This poses an obstacle to financial inclusion and limits social and economic development.

In response to this challenge, which has become most evident during the COVID-19 pandemic, and its restrictions on movement, The government has decided to take advantage of the widespread use of smartphones to encourage the population to adopt electronic financial services via mobile phones as part of its pilot project. Vietnam has 125 million mobile subscribers.

The pilot project aims to increase the percentage of cashless financial transactions, Achieving financial inclusion for low-income groups through smart phone services, This would increase the financial capabilities of these groups and provide them with direct electronic payment services for low-price purchases through the phone recharge card, As well as payment facilitation solutions such as deferred payment services, It will also pave the way for them to benefit from banking services such as microloans and others. Most importantly, smartphone financial transactions will provide users with access to basic paid online services. Such as health care, education, finance, employment opportunities, and social security. Agricultural trade, on which Vietnam's millions of people depend, will benefit from the speed and security of telephone rather than cash.

The expected date for the launch of the new smart financial services has not yet been announced. But participating in it is not difficult, Where it is necessary to present an identity card or passport in which the personal data corresponds to those recorded in their mobile phone subscription file, Provided that they have completed a period of not less than three months from the date of their subscription to this service.

The project is also part of a financial strategy adopted by the government that aims to increase the number of individuals who own a bank account for financial transactions by at least 80% of the total adult population by the end of 2025.

It is noteworthy that there is an increasing demand for various electronic payment services and shopping applications among other categories, The number of electronic financial transactions increased by 66% during the first four months of 2021 compared to 2020. Driven in part by the COVID-19 pandemic. There has also been a significant growth in the use of e-wallets, Payment via smartphones and QR codes, and payment facilitation solutions.

A recently published study indicates that 56% of banking users in Vietnam feel that the services available to them are below their expectations. There are other types of services that the Government must provide to them. However, the project is expected to encourage more banks to accelerate the transition to digital platforms and offer a wider range of digital services over the phone. According to Central Bank data, 94% of banks were able to develop, or are in the implementation phase of plans to develop, Digital solutions.

Some analysts argue that the provision of mobile financial services will be an important catalyst for the adoption of new applications that will contribute to the transformation of Vietnam's economy as a whole into a digital economy.

References:

Subscribe to Ibtekr to stay updated on the latest government initiatives, courses, tools and innovations
Register Now
Subscribe to the Ibtekr's mailing list | every week
Innovators Mailing List
We share with more than 20,000 innovators weekly newsletter that monitors global innovations from all over the world
Subscription Form (en)
More from Ibtekr

Promoting Responsible Artificial Intelligence Adoption in Singapore 

Singaporean authorities have revealed a framework and a set of innovative testing tools that assist companies across various sectors in enhancing governance, transparency, and accountability in their artificial intelligence (AI) applications.

 · · 29 January 2024

Lessons in Circular Economy from the Finish Experience 

In the past few years, Finland has become a hub for circular economy. The country aims to curb the use of natural resources by 2035 and has committed to achieving climate neutrality by 2035. The road towards this goal cannot be reached without circular economy. Finland outlined a clear circular economy roadmap guided by supportive […]

 · · 29 January 2024

Cities Employ Data Analytics to Prevent Homelessness

After years of preventing homelessness, some local governments in Britain and America began to tackle the issue from a different angle. Instead of searching for the homeless to take them to shelters, they use modelling and data analytics to predict and assist those at risk of homelessness and help them before they lose their safety.

 · · 29 January 2024

U.S. Adopts Automation to Accelerate Solar Projects 

To accelerate the pace to reach net-zero, the goal of the mid-twenty-first century, the United States government has devised a new way to reduce the burden of bureaucracy on owners of renewable energy projects, solar in particular, through an online platform that examines the project’s plan and automatically grants it legal permit, reducing transaction time […]

 · · 22 January 2024

Digital Transformation of Brazilian Financial Sector Boosts Financial Inclusion 

Brazil is witnessing a revolution in digital finance and an increase in the number of customers joining it, through a comprehensive government-led reform campaign that intensifies the use of technology, focuses on customer needs, renews regulations, develops instant fund transfer applications, and protects its citizens from high interest rates and fraud.

 · · 22 January 2024
1 2 3 78
magnifiercrossmenuchevron-down