September 23, 2023

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Cashless Payments Account for over 70% of 2021 Retail Transactions in Vietnam

The COVID-19 pandemic has greatly boosted the e-commerce market, with non-cash payments accounting for 70% of total retail transactions in Vietnam last year. According to a survey of 15,000 retailers, cashless payments in 2021 made up 72.8% of total transactions, up 9% year-on-year. Payments through bank accounts became the most popular method, accounting for 36.5% of total transactions at retail shops, restaurants, and cafés followed by cash (29.8%), e-wallets (14.8%), QR code (9.9%), bank cards (8.5%), and payment gateways (0.5%).

Notably, 89.3% of retailers have positive assessments on 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. Telecommunications is not the booming industry it once was as the mobile market has become saturated over the past few years. This has forced telecom providers to look for “new spaces”, one of which is mobile money.

In early December, the State Bank of Vietnam officially licensed three carriers, VNPT, Mobifone, and Viettel, to pilot mobile money services. VNPT and Viettel are the only two that have so far put mobile money services into commercial use. According to a news report, mobile money is expected to be a push towards cashless payments in the country, where only 70% of the population have bank accounts. The biggest difference between mobile money and e-wallets is that customers can pay for services and goods of small value, without a bank account. Additionally, mobile money accounts can also be used on feature phones, which do not connect to the Internet.

Mobile money services will be easy-to-use in rural and remote areas, where bank branches and the Internet have not yet been strongly developed. Once mobile money services are licensed, in theory, any telecommunications subscriber can access the service. However, operators must ensure that subscribers have the correct identification information to provide services, as well as bring convenience and trust to customers, an official noted. The country’s telecom market currently has about 126.3 million subscribers, of which the three largest carriers and those licensed to pilot mobile money account for more than 97% of the market share.

Since the pandemic started, there has been a significant increase in the use of e-wallets, payments via smartphones and QR codes, and high demand for ‘instant credit’ solutions such as buy-now-pay-later, particularly among those segments of the population that remain unbanked or underbanked. Fintech and e-wallet penetration reached 56% in 2021 for Vietnam, a hike of 40 percentage points from 2017. This penetration level is higher than the average of Asia-Pacific (APAC) emerging markets (at 54%) and developed markets (43%).

Last year, Vietnamese people spent most of their time using social networks, texting, watching videos, shopping online, and emailing, OpenGov Asia reported.  The number of goods categories purchased by Vietnamese online shoppers went up 50% compared to 2020, while that of online stores in Vietnam also rose by 40% year-on-year, resulting in a 1.5-fold increase in total online retail sales nationwide. Some 49% of Vietnamese consumers switched to a new online marketplace, based on considerations of price incentives (45%), product quality (34%), and availability of goods (33%).

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Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private company, Qlik offers real-time data integration and analytics solutions, powered by Qlik Cloud, to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik serves more than 38,000 active customers in over 100 countries.

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CTC Global Singapore, a premier end-to-end IT solutions provider, is a fully owned subsidiary of ITOCHU Techno-Solutions Corporation (CTC) and ITOCHU Corporation.

Since 1972, CTC has established itself as one of the country’s top IT solutions providers. With 50 years of experience, headed by an experienced management team and staffed by over 200 qualified IT professionals, we support organizations with integrated IT solutions expertise in Autonomous IT, Cyber Security, Digital Transformation, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

Well-known for our strengths in system integration and consultation, CTC Global proves to be the preferred IT outsourcing destination for organizations all over Singapore today.

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Planview has one mission: to build the future of connected work. Our solutions enable organizations to connect the business from ideas to impact, empowering companies to accelerate the achievement of what matters most. Planview’s full spectrum of Portfolio Management and Work Management solutions creates an organizational focus on the strategic outcomes that matter and empowers teams to deliver their best work, no matter how they work. The comprehensive Planview platform and enterprise success model enables customers to deliver innovative, competitive products, services, and customer experiences. Headquartered in Austin, Texas, with locations around the world, Planview has more than 1,300 employees supporting 4,500 customers and 2.6 million users worldwide. For more information, visit www.planview.com.

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SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.

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HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 

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IBM is a leading global hybrid cloud and AI, and business services provider. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service.

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