State budget. At the same time, the Ministry of Finance also completed the legal framework for electronic transactions in state budget revenue and expenditure, especially electronic transactions between state agencies in the financial sector, electronic transactions with commercial banks and legalization of electronic documents.
- The Ministry of Finance has issued and implemented Circular No. 33/2006/TT-BTC dated April 17, 2006 on TTKSTM in the State Treasury system.
- Regarding State budget collection, the Ministry of Finance issued Circular No. 128/2008/TT-BTC dated December 24, 2008 on guidelines for collecting and managing State budget revenues through the State Treasury; in which, the State budget collection process is improved by having taxpayers deposit cash into the bank where the State Treasury opens an account.
The Ministry of Finance has implemented the Project: "Modernizing the tax collection and payment process between the tax authority - State Treasury - Customs - Finance", in which the coordination of State budget collection with the commercial banking system is a part of this Project. In the past time, these units have connected, signed cooperation agreements and piloted the coordination of State budget collection in a number of large provinces and cities with commercial banks (Vietinbank, BIDV, Agribank) to implement, thereby: the State Treasury saves on staff, equipment, and expenses for payment; commercial banks develop both the quantity and quality of e-commerce payment services; State budget-using units gradually reduce cash funds at the unit; taxpayers have access to new, civilized, modern forms of collection and payment, with flexible transaction times; Financial agencies manage public spending and public finance more effectively, practice thrift, fight waste and corruption... Together with the Core Banking system of commercial banks, this project creates the necessary facilities and technical conditions for organizing the coordination of state budget collection with the commercial banking system and the recent pilot implementation has achieved some encouraging results.
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- Regarding state budget expenditures, the State Treasury gradually transfers cash payments to the commercial banking system (payments via ATM cards, purchase cards, authorization to collect state budget in cash via ATMs, etc.) to ensure compliance with the State Treasury's implementation roadmap and the service provision capacity of commercial banks. The implementation of e-commerce contributes to strictly controlling the contents of cash expenditures via the State Treasury according to the regulations of the Ministry of Finance.
main; linking cash payment control with state budget expenditure control. Regarding salary payment through accounts according to Directive 20, the Ministry of Finance issued Official Dispatch No. 16675/BTC - KBNN dated December 6, 2007 on personal payment through accounts for subjects receiving salaries from the state budget.
- The Ministry of Finance has organized a seminar on "Cashless payment in the public sector - technological solutions" and a Workshop - Exhibition on " IT application in the financial sector" to promote e-commerce in general and the application of modern payment methods in the public sector. Regarding the implementation method, the Ministry of Finance has integrated the contents in the process of issuing policies, developing other projects (not developing a separate detailed project). In general, e-commerce in the public sector has changed: E-commerce activities serving the collection and expenditure of the State budget have been focused on, especially the implementation of the modernization of the tax collection and payment process between tax agencies - State Treasury - Customs - Finance - Commercial banks has been formed, thereby contributing to gradually increasing the rate of e-commerce in the public sector, gradually reducing the rate of cash payments through the State Treasury.
b/ About salary payment through account
This content is chaired by the State Bank, in coordination with relevant ministries and branches. The project determines: By the end of 2010, all agencies and units receiving salaries from the State budget (from the town level and above) will use banking services to pay salaries to staff.
To implement, the State Bank has presided over and coordinated with the Ministry of Home Affairs and the Ministry of Finance to develop and advise the Prime Minister to issue Directive No. 20/2007/CT-TTg dated May 24, 2007 on salary payment through accounts for those receiving salaries from the State budget (Directive 20). Immediately after Directive 20 was issued, the State Bank actively prepared for the implementation of the Directive and issued Directive No. 05/2007/TT - The State Bank directed the entire banking sector to implement Directive 20, in a cautious, strict and appropriate manner in places with adequate infrastructure conditions for providing salary payment services, and discussed and agreed with the State Treasury to issue a number of official dispatches guiding units receiving salaries from the State budget on
Mechanism, payment method, procedures for transferring salary from the State Treasury to the public service providers.
The State Bank has also assigned targets for implementing Directive 20 in 2010; the target in 2010 is to achieve about 55% of the number of units receiving State budget salaries paying salaries through accounts.
In general, Directive 20 was issued at the right time, in line with the development trend, received the response and consensus of society, along with the attention and direction of the Government, the close coordination between the banking system and relevant agencies and organizations, so it has achieved encouraging results, created new changes in the awareness and habits of cadres and civil servants and allowed to draw some useful lessons for the direction and administration work. The number of units and people receiving salaries from the State budget switching to receiving salaries through accounts has increased rapidly, especially in urban areas (by June 2010, 49% of units receiving salaries from the State budget with nearly 1.5 million cadres and civil servants receiving salaries through accounts, accounting for 46% of the total number of people receiving salaries from the State budget). Through the implementation of Directive 20, the card payment infrastructure has been significantly enhanced, the number of issued cards has increased rapidly, and the quality of ATM services has been focused on improving. Directive 20 has created a boost in e-commerce, not only for those receiving salaries from the State budget but also creating an effect that spreads throughout society (up to now, many other businesses and organizations have also deployed salary payment services via accounts).
c/ On payment of social welfare benefits and social benefits through accounts
This content is led by the Ministry of Labor, War Invalids and Social Affairs (MOLISA), in coordination with the State Bank of Vietnam, including: Bringing banking and payment services to low-skilled people, rural areas, remote areas through the payment of social welfare and social benefits through accounts; creating the most convenience for people when withdrawing money, transferring money, paying for services (telephone, electricity, water, etc.) and purchasing goods.
2.4.2.2 Cashless payments in the corporate sector
This content is chaired by the State Bank, in coordination with the Ministry of Industry and Trade. Research to determine the needs and capabilities of e-commerce of enterprises, initially focusing on large corporations and general companies and conducting in 3 major cities: Hanoi, Da Nang, Ho Chi Minh City, from which to propose appropriate measures; promulgate regulations on payment transactions between enterprises to enterprises must be carried out through banks nationwide; most shopping centers and large stores in urban areas must have card acceptance devices; develop electronic payments in accordance with the Master Plan for e-commerce development in the 2006 period.
– 2010 by the Prime Minister.
During the implementation process, the State Bank and commercial banks have integrated the contents of the Project into the process of issuing policies to implement specific operations (without developing a separate detailed Project), and these are also regular operations and of interest to commercial banks.
- The State Bank regularly coordinates with the Ministry of Industry and Trade to promote the development of e-commerce, by regularly exchanging information and coordinating the organization of seminars and forums to provide businesses with e-commerce issues.
- The State Bank has implemented a review to amend and supplement the regulations on disbursement methods in the Regulations on lending by credit institutions to customers. The State Bank issued a Circular regulating loan disbursement by credit institutions; which regulates all forms of lending, applies to all types of credit institutions and requires disbursement of loans by transferring money to the account of the beneficiary with an account at the bank (the party providing goods and services to the borrower).
Commercial banks have proactively approached businesses to provide information on the characteristics and benefits of each type of e-commerce payment service, creating favorable conditions for businesses to open accounts and access payment services.
In general, the payment activities of actual enterprises have been met quite well; large customers, enterprises and organizations of commercial banks have made most of their payment transactions by bank transfer. The State has also had policies to encourage enterprises to make e-commerce payments via banks (such as Circular 129/TT-BTC dated December 26, 2008, which stipulates the deduction of input value-added tax on purchased goods and services with a value of over VND 20 million by bank transfer). The awareness and payment habits of enterprises in applying e-commerce payment methods have changed positively; payment transactions between enterprises, economic organizations and residents made via banks have increased.
Credit institutions have paid attention to disbursing loans by direct transfer to sellers of goods, materials, and services for borrowers and considered this an important measure to control the use of loans for the right purposes to ensure the safety of loans. The proportion of outstanding loans disbursed by transfer by credit institutions to large enterprises is currently quite large.
2.4.2.3 Developing cashless payments in residential areas
a/ On developing cashless payment means and services
meet the needs of the population and be suitable for the integration process
This content is chaired by the State Bank, in coordination with relevant units.
and implementation. This project identifies the following basic contents:
- Develop modern means and services of e-commerce payment in the direction of increasing the quantity, quality and variety of payment products and services with high reliability and at reasonable prices; research and focus on developing products and services with high intellectual and technological content, in line with the development of information technology; implement measures to increase safety and security in the use of payment means, especially modern electronic payment means; increase
Strengthen the supervisory role of the State Bank over payment instruments and payment systems;
- Establish understanding and provide basic and complete information about the benefits, costs and risks associated with each type of payment method or service, so that customers can freely access and choose products, services and payment methods that suit their needs;
- Encourage and facilitate TCCUDVTT to focus on investing in infrastructure, machinery and equipment to serve modern payment transactions, focusing mainly on card services and facilitating the development of payments via the internet and mobile. Quickly access modern technology in the world in a "shortcut" manner;
- Increase the utilities that come with the service, modern payment methods, gradually replace single-purpose services with multi-purpose services (such as using cards for multiple purposes such as payment, paying periodic bills, information inquiries, cash withdrawals... instead of using cards only to withdraw cash).
The State Bank and commercial banks have implemented contents according to actual requirements or integrated contents in the process of issuing policies and implementing specific operations (without developing a separate detailed project), especially for the development of new and modern means and services of e-commerce. The implementation results show the following contents:
- Services and means of e-commerce have been strongly and diversely developed. In addition to continuing to improve and develop means of communication such as payment orders, collection orders, checks, at the same time, many new, modern, convenient and useful services and means have been developed based on the information technology application platform such as: bank cards, Mobile Banking, Internet Banking, SMS Banking, E-wallets,... have appeared and are gradually entering life, in line with the payment trends of countries in the region and around the world; Internet Banking service allows account balance inquiries, printing of subsidiary ledgers, transaction history, aiming to develop bill payments and make money transfers, transfers between accounts within the same banking system;
SMS Banking service, Topup deploying telecommunication networks; organizations that are not credit institutions specializing in providing intermediary services, payment support, especially e-wallets, have been formed and the connection between these organizations with commercial banks and telecommunication companies is increasingly developing.
Bank cards have become a popular means of payment in Vietnam, focused on by commercial banks, with rapid growth and great potential for development. By the end of August 2010, the number of cards issued reached nearly 27 million, with 49 issuing organizations and about 212 card brands, of which debit cards accounted for 96%. The development of bank card services has helped commercial banks have more channels to mobilize capital and develop more services to provide to customers through bank accounts; providing added values on card products: One card but including many utilities with incentives on interest rates, withdrawal limits, ATM money transfers, money transfer fees, payment of bills and goods on Internet Banking, account inquiries, making payment transfers, etc.
Along with issuing multi-utility cards and investing more in POS/EDC at card payment acceptance units, commercial banks have also begun to pay attention to the safety and security of payment cards. Some commercial banks have issued chip cards with high security and safety, capable of integrating multiple utilities, bringing many benefits to customers.
The conversion from magnetic cards to smart cards is in line with the general trend, has important significance, opens up new development opportunities for payment cards and expands card-using services. However, the conversion must be a process, all aimed at the goal of increasingly better serving card users. The State Bank has the role of guiding, recommending, leading and supervising the bank card market in Vietnam, encouraging commercial banks with conditions to implement the conversion and apply chip card technology according to EMV standards. However, in principle, the State Bank only intervenes within the scope of its state management functions and the actual situation requires to ensure stability and safety of the system, while preventing and limiting risks to consumers. Card issuers must self-
Calculate and decide on card conversion based on financial capacity and permitted technological infrastructure.
- Commercial banks have been more proactive in approaching and introducing products to customers, selecting each customer group to offer appropriate payment services; adjusting and improving payment methods, especially payment authorization, which is still the most used method among payment methods, always stable at a high level and increasing sharply over the years due to its advantages of simple, quick procedures and high level of safety. Commercial banks are also more interested in developing retail banking services, personal banking, the number of personal accounts has increased sharply, especially since the salary payment service through accounts was deployed. Some commercial banks have deployed bill payment services: Electricity, telecommunications, insurance, clean water business, cable TV, tuition collection and other fees in universities and colleges, signed contracts to provide highway toll payment services by automatic card.
- The State Bank is finalizing the draft Circular guiding the provision of intermediary payment services to non-bank organizations to comply with the newly issued Law on the State Bank. At the same time, the State Bank allows 07 organizations that are not credit institutions to pilot the provision of e-Wallet payment services. These organizations have proactively and actively cooperated with commercial banks and e-commerce businesses to provide products with many utilities: Payment for purchases on e-commerce websites, online payment by mobile phone, bill payment, purchase money, etc. Up to now, 18 commercial banks have participated in the implementation of e-Wallet services, many banks are also promoting and signing contracts to test this service and e-Wallet has been accepted for payment at over 200 units and is preparing to be deployed at many other units.
- To develop effective card payment services to meet current urgent needs, the State Bank has submitted and received approval from the Prime Minister for the Project to build a unified card switching center and is continuing to direct the implementation of the contents.