Vietnamese Embracing Cashless Transactions

Vietnam is embracing online retail and mobile transactions, according to new figures from the State Bank of Vietnam (“SBV”). 

Cashless transactions saw an almost two-thirds (63 per cent) annual increase in volume in January 2024, according to central bank figures. Meanwhile, the value of cashless transactions was over 40 per cent higher that month than the same period 12 months earlier.

Likewise, the volume (a 57 per cent rise) and value (an increase of 32 per cent) of internet banking transactions saw similar growth. However, the growth in the use of QR codes for digital transactions dwarfs all other categories. QR codes saw a remarkable 892 per cent rise in volume and over a thousand per cent increase in value over this period.

Growth opportunities and compliance risks

We wrote last month about how the SBV was driving the digital transformation of financial services, encouraging banks to offer more online products to consumers. These latest figures from the central bank highlight that Vietnam is fertile ground for digital banking and e-commerce.

As we have written before, the strong growth and potential size of this market is attractive for foreign investors. However, companies looking to enter the market need to understand some important upcoming regulations. 

For instance, in e-commerce, the new Law on E-Transactions is relevant as it defines the responsibilities of large digital platforms with regards to their compliance with Vietnamese law. 

Meanwhile, the Law on the Protection of Consumer Rights outlines the requirements around selling products online and covers both on-shore and off-short entities.

We anticipate that the guiding documents for these upcoming laws will be published in the next few months. And, as usual, we will keep our readers and clients posted about how their provisions could impact investment plans and business activities. 

In the meantime, for more information about investing or doing business in Vietnam, just contact our team on:

Disclaimer: This article and its content are for information only and are not given as legal or professional advice. they do not necessarily reflect all relevant legal provisions with respect to the subject matter. Readers should seek legal or professional advice before taking or refraining to take any action.

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