Market Trends of Vietnam Payments Industry
This section covers the major market trends shaping the Vietnam Payments Market according to our research experts:
Digital Wallets to Drive the Payment Market
- By 2025, OpenGov Asia stated that Vietnam expects the volume of mobile payment transactions to increase by 50-80%, with transaction value increasing by 80% to 100% yearly. It also intends for at least 80% of the population aged 15 and above to have a bank account, for Internet payments to expand by 35% to 40% every year, and for consumers and businesses to use cashless payments at a rate of 40%.
- Most of the country's development strategies make the goal of growing the digital economy and society a major priority. People are projected to be happier, participate in more extensive social activities, and benefit from more favorable social security policies as a result of the development of a strong digital society, all of which will contribute to Vietnam being a safer, more humane, and digital country.
- According to OpenGov Asia, the government has tasked MIC with leading the charge in advancing the digital economy's development. The Ministry has also been entrusted with directing and assisting other ministries, agencies, and localities in the implementation of the plan, as well as providing annual reports to the Prime Minister on their progress.
- Further, according to a decision published by Politburo on rules for participation in the fourth industrial revolution, Vietnam has set a goal of increasing the digital economy's proportion of GDP to 20% by 2025.
- As stated by the Department of Telecommunications, which is part of the Ministry of Information and Communications (MIC), Vietnam had 91.3 million smartphone customers by the end of 2021. By March 2022, an additional two million smartphone customers had joined the ranks, increasing the total to 93.5 million. With 78.4% of adults using cell phones, Hai Phong leads the way, followed by Da Nang with 77.8%.
Understand The Key Trends Shaping This Market
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Retail is Expected to have Significant Growth in the Market
- Visa is collaborating with banks and payment providers on a number of initiatives to boost the growth of cashless payments in Vietnam. Visa and VNPAY announced a partnership in February 2022 to roll out a variety of electronic payment solutions, including a solution to accept contactless payments via mobile phones (Tap to Phone), Visa prepaid virtual cards, Visa Direct money transfer, and receipt services, and the Visa Installment Solution for in-store payments.
- Meanwhile, Visa teamed with Public Bank Vietnam in January 2022 to provide a variety of debit and credit cards. Cashback, an interest-free period of up to 51 days, and comprehensive travel insurance are all available to premium credit card members.
- In 2021, the COVID-19 epidemic strengthened the e-commerce business significantly, with non-cash payments contributing to 70% of total retail transactions in Vietnam. Cashless payments accounted for 72.8% of total transactions in 2021, increasing 9% year on year, according to a study of 15,000 shops conducted by OpenGov Asia.
- Notably, 89.3% of retailers have positive assessments of non-cash payments, considering them a trend at present and in the future. New cashless payment tools are expected to be launched in the time to come to reduce difficulties that retailers currently face.
- As per the survey statistics done by OpenGov Asia, bank account payments were the most common method, accounting for 36.5% of all transactions in retail stores, restaurants, and cafes, followed by cash (29.8%), e-wallets (14.8%), QR codes (9.9%), bank cards (8.5%), and payment gateways (0.5% ).
