Vietnam's Cashless Payment Revolution: Digital Finance Expanding from Rural Areas to Cities

The wave of cashless payments in Vietnam is beginning to reach every corner of the countryside. A statement released by the State Bank of Vietnam (SBV) on December 28 suggests that the use of digital payments in remote and rural areas is experiencing a dramatic increase. In particular, the opening of bank accounts by residents in island and mountainous regions is accelerating, and consumer financial behavior is rapidly changing.

Rapid Development of Digital banking infrastructure

Since 2015, SBV has been promoting strategic initiatives for nationwide deployment of digital banking services. This push for cashless transition is not only about convenience but also forms the core of the country’s financial inclusion strategy. According to analysis by Agribank’s customer service department, the pace of account openings in rural areas is significantly exceeding previous expectations.

Currently, mobile money accounts have reached 2.34 million, with 1.62 million concentrated in rural areas. Over 14,500 vendors are equipped for mobile payments, and the monthly transaction volume exceeds 15 million. These figures demonstrate that Vietnam’s transition to a cashless society is already underway.

Building collaboration frameworks among financial institutions

A key driver supporting the rapid development of digital banking is strategic cooperation among major financial institutions. In November, a global digital banking platform company announced a partnership with Sacombank in Vietnam. This will create a seamless payment ecosystem for a customer base of over 15 million. The CEO described this collaboration as a “necessary transition point,” aiming to realize a multi-layered cashless environment that includes e-commerce and social networks.

Similarly, HD Bank and Unilever Vietnam began collaborating in July. By providing digital financial services to distributors and retailers, an infrastructure is being established that allows consumers to perform cashless payments instantly from their smartphones.

Market creation and public awareness led by local governments

Vietnam’s cashless strategy is evolving from top-down policy design to a new stage where local governments take the lead in creating digital markets. SBV is promoting measures to develop digital marketplace platforms targeting key local products. This environment facilitates a more natural and practical shift from cash transactions to electronic payments.

Positive stance on cryptocurrency adoption

Furthermore, Vietnam is showing increased interest in cryptocurrency technology beyond traditional cashless payments. In July 2021, Prime Minister Pham Minh Chinh issued directives to the central bank for full-scale introduction of cryptocurrencies, initiating pilot programs from 2021 to 2023. This phased approach allows the government to carefully consider the benefits and challenges of adoption.

According to Visa’s 2022 report, Vietnam is one of the Southeast Asian countries with the highest cryptocurrency adoption rates, with about two-thirds of the population having been exposed to digital assets. Indonesia, the Philippines, and Thailand are also showing similar trends, and since the COVID-19 pandemic, digital payment adoption has accelerated across Southeast Asia.

Vietnam’s push for cashless payments is not merely a technological evolution but a strategic effort to democratize finance and digitize the economy nationwide.